|
The U.S. economy has faced a series of strong headwinds this spring, but the economic data released this week showed that economic activity was off to a decent start in the second quarter. While inflation isn’t helping consumers feel particularly flush, U.S. retail sales strengthen despite wilting confidence in April. Data on housing starts, home sales and homebuilder sentiment, on the other hand, showed tentative signs of cooling. Purchase applications fell 12% from the week prior, as prospective homebuyers have been put off by higher rates and deteriorating housing affordability. Furthermore, general uncertainty about the near-term economic outlook, as well as recent stock market volatility, may have caused some households to delay their home search. While the latest employment numbers show that California and the U.S. are still marching on solid footing in April, the terrain might be a bit rocky in the upcoming months.
Rising interest rates and climbing home prices moderate California home sales as statewide median price sets another peak. Sales of existing single-family homes in April were slightly below the month prior, in line with the month-to-month drop from March to April historically. However, the year-over-year drop in sales of 7.4% in April was the biggest decline in the last four months and sales at the national level in April also represented the third consecutive month of yearly decline. Moreover, April pending sales suggest that a more substantial decline is likely to come in May. The year-over-year decline in pending sales implies that we could see a drop of 15% or more in closed sales in California in May, when compared to the same month of last year. Meanwhile, the statewide median price could also set another record high in May, which when combined with higher interest rates, could hinder market demand further in the months to come.
Builder confidence hits lowest level since June 2020. A decline in buyer demand amid rising interest rates, increases in materials costs and home price growth has led builder confidence to drop 8 points to 69 in May, according to the National Association of Home Builders (NAHB). The steep drop in builder confidence in May represents the fifth consecutive month of decline as the housing market continues to face growing challenges. Their lack of confidence is beginning to show in housing starts, which slowed its pace to 1.724 million annual rate in April, a dip of 0.2% from the revised numbers in March. Building permits also dropped from the prior month at a 3.2% clip after revision.
Weekly mortgage demand from homebuyers tumbles, as higher interest rates curb sales. Despite the average 30-year fixed-rate mortgage interest rate dipping slightly to 5.25% from the week prior according to Freddie Mac weekly survey, the mortgage payment for a median-priced home in California continued to rise and was 37% more expensive than the same time of last year. Consequently, overall mortgage applications decreased 11% from one week earlier, while purchase applications dropped 15% from the same week of last year, according to the Mortgage Bankers Association (MBA).
California’s job growth moderates in April, as unemployment rate dips to 4.6%. California employers added 41,400 nonfarm payroll jobs to the economy according to the California Employment Development Department (EDD). The golden state has now regained more than 91% of the nonfarm jobs lost during the first two months of the pandemic and April was the 14th of the last 15 months with a month-over-month gain in nonfarm jobs. California had the largest absolute year-over-year seasonally-adjusted job increase in the nation and accounted for 9.7% of the U.S. total nonfarm jobs gained.
Retail sales climb in April as consumers continue to spend despite high levels of inflation. Americans continued to pump money into the U.S. economy in April, as retail sales showed an increase both on a month-to-month and year-over-year basis amidst high inflation eating away at their purchasing power. Though the smallest in the last four months, retail sales in April were up 0.9% from March and 8.2% from last year showing consumers’ resilience to the growing challenges they continue facing in the current economy. Retail sales figures, however, are not inflation adjusted. Accounted for price growth adjustment, real retail sales were down 4.2% from last April.
If you're ready 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.
|
|
|
Looking To Sell A Property That Needs Some Work?
Save The Time & Hassle With Our New Listing Concierge!
Does your property need some TLC or would having some improvements help you fetch top dollar? With our new listing concierge service we will coordinate getting your home all fixed up and ready to sell. We will manage the entire process of getting your home ready and all decked out with the latest trends, designs and materials. Our contractors are all licensed, bonded, and insured and do excellent work. Best of all, there is no money due up front. This saves you the time and expense of interviewing contractors, managing the work, and all the headache that goes along with fixing up a property. This enables our clients to position their property as "move in ready" to capture maximum buyer interest.
When we renovate homes, our clients receive on average a 150% return on investment!
We have negotiated great terms with our contractors and they don't get paid until the work is done and the home is sold.
|
|
|
|
|
819 Atlantic Ave. #1
Long Beach 90813
2 Beds | 2 Bath | 1,219 SqFt | $565,000
Absolutely beautiful 2-story condo located in prime Long Beach just blocks away from downtown and the beach.
|
|
|
|
|
942 N. Loma Vista Dr.
Long Beach 90813
2 Beds | 1 Bath | 1,158 SqFt | $785,000
Beautifully updated Craftsman home located in the Historic Willmore District overlooking Drake Park on a huge 8,536 sf lot.
|
|
|
|
|
4271 Petaluma Ave.
Lakewood 90713
2 Beds | 1 Bath | 949 SqFt | $840,000
Looking for a home that is in pristine condition, immaculately clean, open, bright & cozy, in a premier location, on a tree lined street and with "wow factor" curb appeal and reasonably priced? Look no further.
|
|
|
|
|
1210 E 11th St.
Long Beach 90813
2 Beds | 1 Baths | 702 SqFt | $550,000
Must see remodeled two-bedroom one bath home in Long Beach! Close to schools, shopping, restaurants, and freeways this home is conveniently located to all.
|
|
|
|
|
421 N. Bellflower Blvd #221
Long Beach 90814
2 Beds | 2 Baths | 1,271 SqFt | $610,000
Live the beach life at this lovely resort style condo!!! Large 1,271sf, 2 bedroom, 2 bath end unit condo with a bonus room/den located near CSULB.
|
|
|
|
|
1329 E 1st St. #16
Long Beach 90802
2 Beds | 2 Baths | 959 SqFt | $476,000
Great location just 2 blocks from the beach in Long Beach. This condo is on the first floor, faces towards the ocean, and the floor to ceiling windows fill the home with wonderful natural sunlight.
|
|
|
|
|
1187 E 3rd St #111
Long Beach 90802
2 Beds | 2 Baths | 1,039 SqFt | $477,000
Close to the East Village Arts District, transportation, trendy restaurants, and just 3 blocks away from the beach.
|
|
|
|
|
100 W 5th St #3C
Long Beach 90802
3 Beds | 2 Baths | 2,147 SqFt | $955,000
Amazing loft at the Kress Lofts in Downtown Long Beach. This was the architect's home and features the largest floor plan in the building.
|
|
|
|
|
1765 E Broadway Ave #305
Long Beach 90802
2 Beds | 2 Baths | 1,328 SqFt | $637,000
Beautiful top floor 2 bedroom, 2 bath end unit condo located just 6 blocks to the beach. Light and bright with high vaulted ceilings.
|
|
|
|
|
542 Magnolia Ave.
Long Beach, CA 90802
1 Bed | 1 Bath | 492 SqFt | $425,000
Beautifully remodeled Victorian style single family home in the Willmore Historic District in downtown Long Beach
|
|
|
|
|
841 Gardenia Ave #207
Long Beach 90802
2 Beds | 2 Baths | 930 SqFt | $415,000
Nicely updated 2 bedroom, 2 bath condo in Alamitos Beach. Inside laundry and 2 side by side parking spaces.
|
|
|
|
|
3580 Gundry Ave
Long Beach 90807
4 Beds | 2 Baths | 2,378 SqFt | $1,025,000
Beautiful and rare on a lot property in Historic California Heights. You will love the Spanish charm of this home featuring wood floors, coved ceilings, and arched entryways.
|
|
|
|
