|
🏡 Southern California Market Update – August 2025
As we move through the second half of 2025, the housing market continues to balance between affordability challenges, high borrowing costs, and cautious optimism from consumers and small businesses. Here’s a quick breakdown of what’s happening in the market right now:
🔑 Housing Affordability in California
Housing affordability remains near historic lows. In Q2 2025, only 15% of California households could afford to purchase a median-priced single-family home. That’s down from the first quarter, but slightly better than a year ago.
- The minimum annual income needed to buy a median-priced home in California is $232,400, with monthly payments around $5,810 (based on a 30-year mortgage at 6.9%).
- While mortgage rates dipped a bit compared to last year, they’re still elevated, keeping affordability tight.
- Affordability improved in 41 counties year-over-year, but many buyers remain priced out.
Looking ahead, mortgage rate fluctuations are likely to keep affordability near these cyclical lows through the rest of the year.
📈 Inflation & Mortgage Rates
Inflation is still putting pressure on the economy:
- Consumer prices rose 0.2% in July and are up 2.7% year-over-year.
- Core inflation (excluding food and energy) rose 3.1%—its highest since February.
- Wholesale prices surged 0.9%, well above expectations, signaling inflation isn’t cooling as quickly as hoped.
Higher inflation often means mortgage rates remain elevated, and that continues to challenge buyers, though rates are still slightly lower than last year’s peaks.
🛍️ Retail Sales & Consumer Spending
Despite inflation, Americans are still spending:
- Retail sales grew 0.5% in July, helped by Amazon’s expanded four-day Prime Day event.
- Auto, furniture, and sporting goods sales were standouts—though some of this increase may be from higher prices rather than more purchases.
Consumers are proving resilient but remain cautious and price-sensitive.
💼 Small Business Optimism
Small business confidence is rebounding:
- The NFIB Small Business Optimism Index rose to 100.3 in July, above its 52-year average.
- Owners feel better about business conditions, supported by stronger stock markets and new legislation.
- Inflation concerns remain, but fewer businesses reported raising prices last month.
This optimism is a positive sign for the broader economy and local job markets.
🏠 The “Lock-In Effect”
Many homeowners are still holding onto historically low mortgage rates:
- 81% of mortgages are below 6% as of early 2025.
- About 1 in 5 mortgages are below 3%, and another third are between 3–4%.
This “lock-in effect” has kept inventory tight, as homeowners hesitate to give up low monthly payments. However, as rates stay higher, that share could decline closer to 75% by year-end, potentially freeing up more homes for sale.
📌 Bottom Line for Southern California
- Affordability is still a major hurdle, but some relief is coming as incomes rise and mortgage rates dip slightly.
- Inflation remains a concern, which could keep rates elevated longer than buyers and sellers would like.
- Inventory remains constrained by the lock-in effect, but it’s slowly loosening.
For buyers: be prepared with strong financing and act quickly when the right property comes along.
For sellers: limited inventory means well-priced homes are still drawing strong interest, even with higher borrowing costs.
If you’re considering buying or selling, staying ahead of these economic shifts is key. I’m here to help you navigate the market and make the most informed decision possible.
|
|
|
Looking To Sell A Property That Needs Some Work?
Save The Time & Hassle With Our 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..
|
|
|
4340 Pixie Ave.
Lakewood, CA 90712
5 Bed | 3 Bath | 2,459 SF | $1,249,900
Beautifully updated 5-bedroom, 3-bath home on a tree lined street in the sought-after Lakewood Mutuals neighborhood! Step inside to find new modern flooring, fresh interior and exterior paint, smooth ceilings, and custom wood shutters that add timeless charm. The open layout features a welcoming living room, a large dining area, and a bright kitchen with white cabinetry, new quartz countertops, and stainless steel appliances. The main level includes three bedrooms and two full baths, including a spacious primary suite with three closets (one walk-in) and a spa-like bath with dual sinks, walk-in shower, and jetted tub. Upstairs, two additional bedrooms and a full bath with walk-in shower provide flexible living space. The backyard is a private oasis with pavers that match seamlessly with the driveway making an expansive area that is perfect for entertaining day or night with ambient lighting, turf play area, or relaxing in the swim spa under the stars. Additional features include central heat and A/C, indoor laundry, and parking for up to 6 cars with a detached 2-car garage and long driveway. Close to Lakewood Country Club, Bixby Knolls, and Long Beach Exchange (LBX), this home offers both tranquility and prime access to shopping, dining, and entertainment.
OPEN HOUSE
Saturday (8/23) and Sunday (8/24)
1:00 - 4:00pm
|
|
|
133 The Promenade N #319
Long Beach, CA 90802
1 Bed | 1 Bath | 910 SF | $549,900
Modern loft style living in the heart of downtown Long Beach!
This wonderfully oversized one bedroom open concept loft style condo in a premium building located at the vibrant center of downtown Long Beach is ready to be yours! Walk to the wonderful shops and restaurants all around the area. Hop onto the light rail and travel all over Los Angeles / Hollywood / LAX and will soon go even as far as Pomona! With the waterfront just minutes away and walk/bike pathway all the way to Belmont Shores, the access possibilities are endless. This loft style condo features an open concept kitchen overlooking the living room and balcony that has the feel of airiness matching the 10 feet high ceiling throughout. Wood flooring with sliding frosted panels featured for the bedroom.
|
|
|
6600 Warner Ave. #144
Huntington Beach, CA 92647
1 Bed | 1 Bath | 754 SF | $473,988
Turnkey Coastal Living in Huntington Beach!
This bright and private ground-floor corner unit features 2 deeded parking spaces, 1 bedroom, and 1 updated bath; the one uncovered parking spot and one carport are a rare find! Enjoy a spacious living area with views and access to an extra-large private patio and garden, allowing you to appreciate the coastal weather Huntington Beach has to offer. This bedroom unit is unique in this complex with its added walk-in closet, designed by California Closets to maximize storage. The remodeled kitchen boasts granite countertops, soft-close Shaker cabinets, built in microwave, dishwasher, updated lighting and laminate flooring. Upgrades continue in the bathroom with quartz counters, modern vanity, laminate flooring and updated lighting. Milgard dual-pane windows, an oversized slider, and ceiling fans add year-round comfort. Resort-style amenities include gated entry, pool, spa, fitness center, clubhouse, billiards/game room, BBQs, and lush greenbelts. Prime location near schools, restaurants, shops, Central Park, Central Library, the Equestrian Center, Senior Center, Sports Complex, Bella Terra, Bolsa Chica wetlands; and of course, is just minutes to Bolsa Chica, Sunset, and Huntington State Beaches!
|
|
|
939 E Appletong St #8
Long Beach 90802
2 Bed | 2 Bath | 900 SF | $2,500
Discover this delightful top floor condo in the heart of Alamitos Beach. Just steps from the beach, East Village, Retro Row, and Shoreline Village, this two-bedroom, two-bathroom gem offers a cozy and inviting living space. Featuring spacious bedrooms with ample closet space, large windows, and retro bathroom tiling, this condo provides comfort and character. The kitchen boasts tile floors and counters, a refrigerator, dishwasher, range, oven, and plenty of storage. The living room opens to a private balcony overlooking the courtyard, while a one-car garage with storage and community laundry facilities add convenience. Enjoy the vibrant local scene with great restaurants, cafes, entertainment, and parks nearby.
|
|
|
6859 E Monaco Pkwy.
Orange, CA 92867
4 Bed | 3 Bath | 2,190 SF | $1,199,000
Charming Tri-Level Home in Desirable Serrano Heights!
Nestled near a quiet cul-de-sac in the sought-after Serrano Heights community, this 4-bedroom, 3-bathroom tri-level home offers comfort, space, and style. The welcoming front porch opens to a light-filled interior with large windows, a mix of tile and carpet flooring, ceiling fans, and an open-concept kitchen featuring stainless steel appliances, updated cabinetry, a pantry, and island—perfect for entertaining. The spacious primary suite boasts dual closets, a soaking tub, separate shower, and double sinks. Enjoy peaceful views from your private balcony overlooking the beautifully landscaped backyard with mature trees and plenty of room to create your ideal outdoor oasis. Additional highlights include an indoor laundry room, direct-access two-car garage, and proximity to top schools, shopping, dining, and scenic trails at Santiago Oaks Regional Park.
|
|
|
800 Pacific Ave. #301
Long Beach, CA 90813
1 Bed | 1 Bath | 702 SF | $299,900
Charming Downtown Condo Just One Block from Pine Ave!
Enjoy the best of downtown living in this beautifully maintained and updated 1-bedroom condo, ideally located just one block from vibrant Pine Avenue. Situated on the third floor, this bright and breezy unit boasts west-facing views, abundant natural light, and refreshing ocean breezes—all while offering peace and privacy with no shared walls in the living room or bedroom. The spacious bedroom features 1920s French doors, walk in closet, and a ceiling fan for added comfort. The generously sized kitchen includes a stainless steel refrigerator and stove, white cabinetry, and a cozy dining area. High ceilings, fresh paint, updated dual pane windows in the living room, and updated flooring throughout add modern comfort to the home’s vintage charm. You'll appreciate the ample storage, with three closets (one large enough for a home office), plus a large assigned basement storage room, and a shared bike locker. The pet-friendly building includes community laundry, and monthly permit parking is available nearby. For buyers looking for an urban loft feel, some of the walls can be opened to reveal exposed brick walls (like the unit above it that recently sold for $400k!). Seller is willing to credit Buyer up to 3% towards Buyer Concessions. Seller is open to selling it fully furnished. Great opportunity for an investor too - Condo was previously rented for $2100 before as a fully furnished monthly rental.
|
|
|
218 W 9th St.
Long Beach, CA 90813
1 Bed | 1 Bath | 990 SF | $380,000
Welcome to your new home in the heart of Downtown Long Beach!
This stunning home offers the perfect blend of historic charm and modern convenience. As you step inside, you'll be welcomed by a private staircase that leads to your tranquil retreat. The main living area boasts original hardwood floors that beautifully accentuate the dining and living rooms. You'll find built-in storage space lining the walls of the dining room, perfect for keeping your space organized and clutter-free. Adjacent to the living room is a cozy bonus room, offering endless possibilities. Situated just 9 blocks from the beach, this home is ideally located close to major freeways, a variety of restaurants, and shopping destinations. Don't miss the chance to make this versatile and charming unit your own!
|
|
|
179 Santa Ana Ave.
Long Beach, CA 90803
3 Bed | 3 Bath | 3308 SF | $1,937,000
Modern Coastal Luxury in the Heart of Belmont Shore!
Prepare to be impressed by this stunning 3-bedroom, 3-bath, four-story contemporary home offering over 3,300 sq ft of sleek, modern living. Located just steps from the best of Belmont Shore, this light-filled residence features an open-concept living area with hardwood floors, a gourmet kitchen with quartz island and stainless steel appliances, and multiple balconies to enjoy the ocean breeze. The luxurious primary suite boasts a double-sided fireplace, spa-like bath with soaking tub, and a custom walk-in closet. Additional highlights include a ground-level entertaining space with bar, private loft, laundry room, solar panels, and a two-car garage with extra parking. Thoughtfully designed for comfort, style, and coastal living, this is a rare opportunity you don’t want to miss!
|
|
|
3445 S Pacific Ave.
San Pedro, CA 90731
3 Units | 6 Beds | 3 Baths | 2,742 SF | $1,100,000
Prime Triplex Just 2 Blocks from Cabrillo Beach – Ideal for Investors or Owner-Occupants!
Located the desirable Point Fermin are of San Pedro, this well maintained triplex is just steps from Cabrillo Beach and offers an incredible opportunity for investors or owner-users. Each of the three 2-bed, 1-bath units includes in-unit laundry hookups, dual-pane windows, and two parking spaces (garage + driveway). The front unit features a spacious patio with peek-a-boo ocean views, while the top-floor owner’s unit is move-in ready with updated kitchen and bath, laminate flooring, and crown molding. The large shared backyard is perfect for entertaining. Two units are tenant-occupied at below-market rents, with the top rear unit ready for occupancy. Projected gross income is $73,476/year with pro forma potential of $96,000/year. Subject to LA City Rent Control. Enjoy close proximity to beachside amenities, dining, and recreation in this sought-after coastal location!
|
|
|
8230 Santa Inez Place,
Buena Park, CA 90620
4 Bed | 2 Bath | 1,194 SF | $655,000
Stylish 4-Bedroom End-Unit Townhome in the Heart of Buena Park! Welcome to this beautifully upgraded end-unit townhome ideally located in central Buena Park. The spacious and flexible floor plan features a desirable main-level primary suite with an attached remodeled bath, plus a second expansive primary suite upstairs with a walk-in closet and shared bath. The modern kitchen is a true highlight—featuring sleek quartz countertops, newer cabinetry, Frigidaire stainless steel appliances, and a chic blue subway tile backsplash - perfect for cooking and entertaining. Luxury vinyl plank flooring runs throughout the home, complemented by updated bathrooms, central heat & A/C, and direct access to a 1-car carport. Enjoy indoor-outdoor living with your own private enclosed backyard, ideal for lounging, dining, and summer BBQs. The community offers resort-style amenities including a sparkling pool, tennis court, clubhouse, and playground. Just minutes from Knott’s Berry Farm, shopping, dining, and the 91 Freeway, this home is the perfect blend of comfort, convenience, and style.
|
|
|
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!
|
|
|
1811 Tevis Ave.
Long Beach 90815
5 Bed | 2 Bath | 2018 SF | $1,420,000
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.
|
|
|
|
