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Hope everyone has a great Mother's Day weekend!
Last week, the Fed enacted its 10th rate hike in its battle against inflation. They hinted that it may be the last but reiterated that much depends on incoming data as uncertainty on the health of the banking system and the overall economy amounts. Despite recent challenges, the labor market remains solid and added more jobs than expected. However, fewer job openings suggest that the 2-year labor shortage is beginning to normalize. Fortunately, California’s population decline slowed last year as births stabilized, deaths decreased, and foreign immigration rebounded.
Market activity picks up late into the spring home-buying season, tight inventory remains a challenge: According to the California Association of Realtors®’ monthly member survey, market activity is gradually increasing as is typical this time of the year. The share having listing appointments, entering escrow, and closing escrow all increased from the previous month. In fact, new escrows (22.7%) and closed sales (23.3%) were at their highest levels in seven and nine months, respectively. That said, while listing appointment rose from the previous month, the share of those who actually listed a property was unchanged from the previous month at 18.3% - highlighting the current headwinds for new listings and exacerbating the incredibly tight inventory in the resale market. Limited options for buyers created greater competition and more than one-third of Realtors® witnessed 5+ offers made on a home – the biggest share in eleven months.
Fed raises rates by 25 bps and hints a potential end to hikes: The central bank’s Federal Open Market Committee (FOMC) approved its 10th interest rate hike of its benchmark borrowing rate by 0.25 percentage point, which takes the fed funds rate to a target range of 5%-5.25%. This is the highest the Fed Funds Rate has been since August 2007. After a little over a year of consecutive rate hikes the FOMC subtly suggested that the current tightening cycle has perhaps come to an end. However, with lingering concerns over economic growth and recent banking turmoil has rattled nerves on Wall Street and Main Street so it is not clear whether the Fed will truly pause here. The Fed acknowledged that while inflation has moderated somewhat, inflation is still the primary focus and pressures continues to run high. For that matter the path ahead will be dependent on incoming data and financial conditions.
Labor market remains tight despite recent directional slowdown: The U.S. economy added another solid 253K jobs to its payroll in April. While hiring in February and March were revised downward taking some steam away from the last couple of reports, the three-month average remains at a robust 222K pace. The ongoing strength of hiring is keeping the labor market tight even as the supply picture has improved in recent months. The labor force participation rate was essentially unchanged in April and the unemployment rate fell to 3.4%, on par with a 53-year low. However, hiring momentum has slowed and job openings have been trending lower, which suggests that the Fed’s intervention is beginning to cause the roughly 2-year labor shortage to normalize.
California’s population decline slows while housing grows: According to the California Department of Finance, the state’s population is estimated at 38,940,231 people as of the beginning of the year. Stable births, fewer deaths, and a rebound in foreign immigration were all factors that slowed California’s recent population decline in 2022. The 0.35% population decline for 2022, marked a slowdown compared to the recent decline during the pandemic between 2021 and 2022 were population decreased 0.53% or 207,800 persons. Meanwhile, statewide housing growth increased 0.85% in 2022 – the highest level since 2008. Although the ramped-up construction has helped, it is not enough to meet California’s population demands for housing to seriously reduce high rents and housing prices.
If you would like to discuss today's market and whether now is a good time for you to buy or sell, give me a call at (562) 900-9430.
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1007 Catalina Ave #108
Redondo Beach 90277
2 Bed | 2 Bath | 1,181 SF | $1,249,000
Welcome to Your Dream Beach Home! A Stunning 2-Bedroom Condo located 1 block to the beach.
Open House Saturday
(5/13) 12 - 3pm
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2217 Westwind Way
Signal Hill 90755
4 Bed | 4 Bath | 3,516 SF | $2,495,000
Stunning panoramic views from this custom hilltop home, nestled at the end of the cul-de-sac on a double corner lot. Amazing city and ocean views from Newport Beach to the skyscrapers of downtown LA.
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7887 Lampson Ave #54
Garden Grove 92841
2 Bed | 2 Bath | 800 SF | $110,000
Beautifully updated 2 bedroom, 2 bath home in Garden Terrace Estates.
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5250 E. Lomita Ave.,
Orange 92869
32,924 SF of Residential Land | $650,000
Located on a private street with custom homes, this 32,924 SqFt lot comes with plans for a 5000+ SqFt custom home featuring amazing views.
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1329 E. 1st St #16
Long Beach 90802
2 Bed | 2 Bath | 959 SF | $2,500
Looking for the perfect beachside home? Look no further than this beautiful two-bedroom, two-bathroom condo located in the heart of Alamitos Beach!
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985 S. Idaho Ave. #60
La Habra 90631
2 Bed+Den | 2 Bath | 1,073 SF | $489,000
New on the market! This 2 bedroom plus a den (currently being used as a 3rd bedroom) is tucked away in a peaceful serene location surrounded by beautiful trees in the Woodlake Villas of La Habra.
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256 Hermosa Ave
Long Beach 90802
2 Bed | 1 Bath | 780 SF | $479,000
Nicely updated 2 bedroom condo in Alamitos Beach, close to Bluff Park, and just a short walk to the beach, Bixby Park, cafes, nightlife, and great restaurants.
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199 Prospect Ave
Long Beach 90803
5 Bed | 3 Bath | 2,557 SF | $1,895,000
Stunning 4 bedroom, 2 bathroom Belmont Heights Tudor with a nicely-sized Guest Quarters/Rental Unit/Home Office above the 2-car garage!
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200 S. La Fayette Park Pl. #1
Los Angeles 90057
1 Bed | 2 Bath | 1,990 SF | $775,000
Great corner unit 1 bedroom, plus den and loft townhome located close to Korea town, DTLA, and Silverlake.
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100 W. Louise St.
Long Beach 90805
3 Bed | 2 Bath | 1,031 SF | $545,000
Great opportunity to own this 3 bedroom, 2 bath single family home on a corner lot. Bring your imagination as this fixer has so much potential.
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5221 E Patterson St.,
Long Beach 90815
4 Bed | 2 Bath | 1,627 SF | $870,000
Wonderful home in the Stratford Square area of Long Beach. Lovely neighborhood known for its award winning schools.
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939 Appletone Ave #3
Long Beach 90802
1 Bed | 1 Bath | 640 SF | $355,000
Nicely updated top floor end unit 1 bedroom 1 bath condo in the heart of Alamitos Beach just a short walk to the beach.
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939 Appletone Ave #8
Long Beach 90802
2 Bed | 2 Bath | 900 SF | $453,000
Charming two bedroom two bathroom condo sits in a prime location, just blocks away from the popular Alamitos Beach, Shoreline Village, Pike Outlets, 4th Street's Retro Row, Downtown Long Beach, and more
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64 Corona Ave.,
Long Beach 90803
3 Bed | 3 Bath | 1,532 SF | $1,550,000
Amazing single-story bungalow on an oversized lot located less than a block to the ocean in the heart of Belmont Shore!
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2204 Conquista Ave.,
Long Beach 90815
4 Bed | 3 Bath | 2,629 SF | $1,075,000
Beautifully upgraded 4 bedroom, 3 bathroom home in the highly desirable Los Altos area of Long Beach. This spacious two-story pool home is perfect for entertaining.
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6490 E Saddle Dr
Long Beach 90815
3 Bed | 3 Bath | 2,845 SF | $1,720,000
Presenting this Amazing turnkey opportunity to live in Bixby Hill's 24 hr gated community. An entertainers paradise with your own oversized pool w/ beautiful waterfall.
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17141 Harvest Ave.,
Cerritos 90703
5 Bed | 3 Bath | 2,739 SF | $1,275,000
Welcome Home! Located in the highly sought-after area of Cerritos, this impeccable two-story home occupies is move-in ready
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5763 Eckleson St.,
Lakewood 90713
3 Bed | 2 Bath | 1,694 SF | $831,000
Beautifully updated 3 bedroom, 2 bath home in the heart of Lakewood on a tree lined street only minutes from great parks, schools, and nearby freeways.
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