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🏡 Weekly SoCal Market Update: Economic Slowdown, Rising Insurance Costs & a Shifting Housing Landscape
As we move through Q2, the latest economic headlines continue to paint a mixed picture—offering both opportunities and challenges for homebuyers, sellers, and investors across Southern California.
📉 U.S. Economy Contracts Slightly in Q1
The U.S. economy shrank by 0.3% in the first quarter of 2025, marking the first decline since early 2022. The drop was largely driven by a surge in imports and a pullback in government spending. Businesses also appear to be preparing for the impact of new tariffs, stocking up on materials ahead of potential price hikes. While Southern California hasn’t seen the full effects yet, a national slowdown may influence buyer confidence and lending conditions locally in the months ahead.
🔥 Homeowners Insurance Rates on the Rise in California
If you’re a homeowner—or planning to become one—expect insurance costs to go up. Average premiums in California are projected to increase by 21% this year, following a 10% bump in 2024. This is largely due to wildfire-related losses and recent changes in how insurers assess climate risks. Combined with elevated home prices and borrowing costs, rising insurance rates add another affordability hurdle for buyers in SoCal.
💼 Job Market Remains Strong—for Now
Despite economic headwinds, the U.S. labor market is holding steady. April saw 177,000 new jobs added, with strength in sectors like healthcare, transportation, and hospitality. The unemployment rate held at 4.2%, and while wage growth slowed slightly, it’s still positive. A healthy job market continues to support housing demand, particularly in desirable Southern California neighborhoods.
🏗️ Construction Spending Dips Slightly
After several months of steady gains, national construction spending fell in March—driven by declines in both residential and nonresidential sectors. Home improvement spending in particular saw a notable drop. However, multifamily construction held flat after 15 consecutive monthly declines, which may signal stabilization in rental housing development. Locally, this could ease some pressure on the for-sale inventory over time.
😟 Consumer Confidence Hits 13-Year Low
Tariffs and inflation worries are weighing heavily on consumer sentiment. April's consumer confidence reading dropped to its lowest level since the early days of the pandemic. Many respondents cited fears about job security and a potential recession, which could impact homebuying decisions as we move into the heart of the spring market.
📌 What This Means for SoCal Real Estate
While economic uncertainty and rising costs are creating headwinds, the underlying fundamentals—like job growth and stable demand—are still supporting the market here in Southern California. Buyers may find opportunities as competition softens slightly, and sellers who price strategically can still attract motivated buyers.
If you're thinking about buying, selling, or just want to understand how these trends affect your real estate goals, I’m here to help.
Hope everyone has a great Mother's Day weekend!
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1811 Tevis Ave.
Long Beach 90815
5 Bed | 2 Bath | 2018 SF | $1,395,000
Stunning Remodeled 5-Bedroom Home in Highly Desirable Los Altos! This beautifully remodeled home is nestled on a picturesque tree-lined street in one of Los Altos’ most sought-after neighborhoods. Designed for modern living and entertaining, the open floor plan features hardwood floors, beamed ceilings, and custom paint throughout. The gourmet kitchen boasts sleek white cabinetry, black quartz countertops, a spacious island, and high-end GE Profile stainless steel appliances. Enjoy seamless indoor-outdoor living with a stunning wall of glass-pane doors that open to an entertainer’s patio and a beautifully landscaped backyard. Recent upgrades include a new roof and driveway in 2024, solar system with dual batteries in 2024, and new windows in 2023. Conveniently located near shopping, parks, Trader Joe’s, Cal State Long Beach, and award-winning Minnie Gant Elementary School—this home truly has it all!
OPEN HOUSE
Saturday (5/10) 1:00 - 4:00 pm
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1535 E Ocean Blvd #3
Long Beach, CA 90802
2 Bed | 1.5 Bath | 943 SF | $575,000
Beautiful Top-Floor Corner Condo with Peek-a-Boo Ocean View!
Enjoy beachside living in this beautiful 2-bedroom, 1.5-bath condo offering views of Ocean Blvd from its prime top-floor corner location. Just steps from the sand with easy beach access, this home features a spacious living room with gorgeous wood floors and recessed lighting, while the updated kitchen offers granite countertops, white cabinetry, and stainless steel appliances. Located right across the street from the beach with beach access. Rare private garage with remote. Conveniently located close to all of the great restaurants, cafes, and entertainment in downtown Long Beach and Belmont Shore. Don’t miss this chance to live just moments from the beach, bike paths, and ocean breezes!
Eligible for a $20,000 down payment grant from City National Bank!
OPEN HOUSE
Friday (5/9) 3:00 - 6:00 pm
Saturday (5/10) 12:00 - 4:00 pm
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1310 E Ocean Blvd #23
Long Beach, CA 90802
1 Bed | 1.5 Bath | 1090 SF | $4,250 / Month
Luxury Oceanfront Living at The Ocean Club – Beach Level Condo with Breathtaking Ocean Views! Live the ultimate coastal lifestyle in this stunning oceanfront condo located on the beach level of the prestigious Ocean Club. Just two floors from the sand, this beautifully appointed condo offers full panoramic ocean views from every room and from the large private balcony. Enjoy floor-to-ceiling windows, an open-concept living space, beautifully updated kitchen, and primary suite with walk-in closet and luxurious bath. Resort-style amenities include 24-hour concierge, fitness center, guest suite (available to rent for overnight guests), club room, and an expansive ocean-view pool deck with spa, fire pit, and BBQ area. Two secured parking spaces. Inside laundry. Enjoy an active lifestyle with the famous beach bike path to Belmont Shore or the Marina just steps away. Conveniently located by great restaurants, cafes, Bluff Park, The Pike, Performing Arts Center, Shoreline Village, East Village Arts District, Belmont Shore, public transportation, and some of the 2028 summer Olympics sites.
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2901 Llewellyn Dr.,
Signal Hill, CA 90755
4 Bed + Den | 3 Bath | 2640 SF | $5,500 / Month
Beautiful 4-Bedroom Home with Loft in Gated Bixby Ridge Community! Welcome to this beautifully maintained 4-bedroom, 3-bathroom home with a loft and den, located in the highly desirable gated community of Bixby Ridge. This spacious residence offers a bright and open layout with soaring cathedral ceilings, a formal living and dining area, and abundant natural light flowing in from the large side yard. The thoughtfully designed floor plan includes one bedroom and full bath on the main level, three additional bedrooms and a flexible den on the second floor, plus a generous third-floor loft—ideal for a home office, gym, or playroom. The primary suite features a walk-in closet, dual sinks, and a luxurious bath with a soaking tub and separate shower.
The gourmet kitchen boasts stainless steel appliances, granite counters, a center island, and breakfast bar, opening to a cozy family room with a gas fireplace and backyard views—perfect for entertaining or relaxing. Additional highlights include custom plantation shutters, recessed lighting, central air and heat, and a 2-car attached garage with direct access. Laundry hookups are conveniently located on the second floor. Don’t miss this opportunity to live in a secure, peaceful community near parks, shopping, and dining.
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3603 E Hungerford St.
Long Beach, CA 90805
2 Bed + Bonus Room | 1 Bath | 1064 SF | $799,900
Charming 2-Bedroom + Bonus Room Home in a Quiet Long Beach Neighborhood! This beautifully updated home features fresh exterior paint, a new roof, and central AC. The light-filled living room boasts wood floors, recessed lighting, and an inviting atmosphere, while the updated kitchen includes granite counters, stainless steel appliances, and modern cabinetry. A spacious bonus room with a stone fireplace offers versatility as a family room or 3rd bedroom. The expansive backyard with a patio is perfect for entertaining or adding an ADU, and the long driveway with a finished 1-car garage provides plenty of parking. Located near Lakewood Mall and local amenities, this home is a must-see!
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225 W 6th St #515
Long Beach 90802
1 Bed | 1 Bath | 547 SF | $315,000
Top-floor end unit condo in the heart of Long Beach, offering privacy and city views! This nicely updated home features an open living area with a private balcony, a stylish kitchen with butcher block countertops, and a bright bedroom with two mirrored closets. Located near top attractions like the Long Beach Convention Center and Shoreline Village, with easy access to dining, shopping, and transportation.
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223 Elm Ave.
Long Beach 90802
2 Bed | 3 Bath | 1570 SF | $785,000
Enjoy modern luxury living in this stunning 2019-built townhome at The Huxton in the East Village Arts District. This inviting home features an open-concept layout perfect for entertaining, with high ceilings, large windows, recessed lighting, and beautiful flooring throughout. The gourmet kitchen boasts quartz countertops, soft close cabinets, and upscale appliances by Bertazzoni and Bosch. Upstairs, two primary suites offer walk-in closets and luxurious bathrooms. Enjoy city views from the spacious rooftop deck – ideal for relaxing or BBQs. Eco-friendly features include owner-owned solar panels and a garage pre-planned for EV charging. Located in a secure, gated complex, you’ll be steps from the waterfront, dining, cafes, and nightlife.
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3817 W Compton Ave.
Orange, CA 92868
4 Bed | 2 Bath | 1316 SF | $985,000
Beautiful Single-Story Pool Home with Modern Upgrades in Orange, CA! Discover this stunning 4-bedroom, 2-bathroom home situated on a spacious 7,598 sq. ft. lot in a fantastic Orange neighborhood. This thoughtfully updated home offers everything you need for comfortable living and entertaining. Located in a friendly neighborhood, this home offers unbeatable access to major freeways (I-5 and 22), top destinations like UCI Medical Center, Angels Stadium, Disneyland, Old Towne Orange, The Outlets at Orange, Chapman University, Honda Center, and GardenWalk. This is the perfect opportunity to live in a vibrant area while enjoying a tranquil and well-appointed home.
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488 E. Ocean Blvd #1102
Long Beach, CA 90802
1 Bed | 1 Bath | 600 SF | $545,000
Stunning 11th-Floor Ocean View Condo in the Iconic Aqua Towers! Enjoy breathtaking ocean, marina, and city views in this stunning corner-unit high-rise. Featuring floor-to-ceiling windows, high ceilings, slate flooring, granite countertops, and a wrap-around balcony, this condo offers the ultimate in coastal living. A rare private enclosed garage near the elevator adds extra convenience. Resort-style amenities include 24-hour security, pool, spa, sauna, fitness center, and clubhouse. Just steps from the beach, shopping, dining, and entertainment—don’t miss this incredible opportunity!
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3824 Pacific Ave.
Long Beach 90807
4 Bed | 3.5 Bath | 2646 SF | $1,710,000
This stunning, custom-built single story Mediterranean style pool home was completely rebuilt in 2007 and features 4 bedrooms and 3 1/2 baths. Set amidst towering palms on one of the city's most prestigious avenues. A Saltillo-tiled walk leads to custom-made iron doors entering into the grand reception foyer beneath soaring cathedral ceilings. Exquisite 3/4 solid oak hardwood flooring flows throughout. The awe-inspiring great room boasts a 12' high cathedral ceiling, crown moldings and a gas fireplace. Custom designed gourmet kitchen features classic cherry wood cabinetry, granite counters, walk-in pantry, 5 burner gas cooktop, Stainless dual ovens, Built-in ref/freezer, dishwasher, a large island with seating for 4 and a separate dining area. Outside the kitchen is a fabulous raised lighted deck leading to the newly built pool area. A unique roofed but open-air lounge perfect for indoor/outdoor living and entertaining. There is also a full pool bath located next to the open family room and pool.
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