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California Housing Market Sees Encouraging Rebound in July
The California housing market showed solid signs of recovery in July, as home sales surged and housing inventory grew compared to last year. Although the rebound isn’t a V-shaped recovery, the recent uptick is promising and could set a positive tone for the second half of the year. With the Federal Reserve hinting at a potential rate cut in September, and more cuts likely on the horizon, mortgage rates are expected to ease gradually over the next few quarters. As the economy continues to slow at a measured pace, we can anticipate further improvements in the housing market in the coming months.
Housing Market Starts the Second Half of 2024 on a Positive Note
July marked a turnaround for the housing market, thanks to moderating mortgage rates that began declining in June. California home sales increased by 3.6% from June and were up 4.1% compared to July 2023. The state saw its highest sales figures since February, and with mortgage rates continuing to decline, further increases in sales could follow. While the median home price dipped below $900,000 for the first time in four months, it still posted a year-over-year growth of 6.5%. As we move into the off-season, we may see home prices soften further. Additionally, new active listings have been on the rise, with 41 counties across California reporting more for-sale properties than last year. If mortgage rates continue to soften, we should see sustained growth in housing supply throughout the third and fourth quarters.
New Home Sales Reach 14-Month High
July saw a significant jump in the sale of newly constructed single-family homes across the U.S., reaching the highest level since May 2023. According to the latest data from the U.S. Census Bureau and the Department of Housing and Urban Development, new home sales surged by 10.6% from June, marking the sharpest monthly gain since August 2022. Sales reached 739,000 units, well above the expected 625,000 units. Year-over-year, new home sales increased by 5.6%, with a 2.6% rise on a year-to-date basis compared to the first seven months of 2023. On the supply side, the inventory of new homes dipped to its lowest level in six months, with available units dropping 1.1% from June but showing an 8.2% increase compared to July 2023. With mortgage rates at their lowest since May 2023 and a potential Fed rate cut on the horizon, both new and resale home markets could see continued recovery in the coming months.
Housing Affordability Drops to Lowest Level Since 2007
California’s housing affordability index fell to its lowest point in nearly 17 years during the second quarter of 2024. The statewide index for existing single-family homes dropped 3 points from the first quarter to 14%, marking a 2 percentage point decline from a year ago. High home prices and elevated mortgage rates have continued to drive up borrowing costs, pushing affordability to its lowest level since 2007. The monthly mortgage payment for a median-priced home hit a record high in the second quarter, surging by 13.6% both quarter-over-quarter and year-over-year. However, mortgage rates have begun to moderate since July and could decrease further if inflation continues to ease, potentially improving affordability in the months ahead.
Feel free to reach out with any questions or for personalized advice. Your success in real estate is my top priority.
Hope you have a great Labor Day weekend!
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488 E Ocean Blvd #P9
Long Beach 90802
2 Bed | 1.5 Bath | 1447 SF | $799,900
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2101 E 2nd St #205
Long Beach 90803
2 Bed | 2 Bath | 1064 SF | $689,900
Enjoy the ocean breeze in this beautiful condo located just 2 blocks to the beach and across from Bixby Park. Walking distance to the beach, Retro Row, Broadway Ave, dog park, Farmer’s Market, and all the great local restaurants, cafes, and nightlife.
OPEN HOUSE
Saturday 12 pm - 3 pm
Sunday 12 pm - 3 pm
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6713 E Almada St
Long Beach 90815
4 Bed | 3 Bath | 2136 SF | $1,174,900
Welcome to Your Dream Home in Los Altos! This stunning 4-bedroom, 3-bathroom, 2-story home is a rare find in the highly sought-after Los Altos community. Conveniently located near Belmont Shore, this home offers easy freeway access, making commuting a breeze. You'll be close to parks and highly rated schools, perfect for families and outdoor enthusiasts alike.
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6600 Warner Ave #182
Huntington Beach 92647
1 Bed | 1 Bath | 765 SF | $425,900
Highly sought after top floor condo at Villa Warner iin Huntington Beach! This beautiful condo offers plush carpeting, smooth ceilings, recessed lighting, large living room with sunny balcony! Villa Warner is a gated community and offers a large pool, spa, cooking area, weight room, billiards room, Extra storage, close to the Ocean, shopping & restaurants.
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1168 E 10th St #224B
Long Beach 90813
2 Bed | 2 Bath | 698 SF | $410,000
Great opportunity to own this nicely updated 2 bedroom, 2 bath, top floor corner condo with views of Signal Hill. Just a short drive to downtown Long Beach and to the beach!
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525 E Seaside Way #1508
Long Beach 90802
2 Bed | 2 Bath | 1030 SF | $790,000
Enjoy breathtaking ocean views from the living room, bedrooms and the patio in this modern luxury 2 bed, 2 bath highrise condo. Short distance to the beach, harbor, Shoreline Village, Terrace Theater, restaurants, nightlife, and so much more!
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3022 Bostonian Dr.
Rossmoor 90720
4 Bed | 3 Bath | 2,612 SF | $1,700,000
Welcome Home - Updated Kempton model home featuring 4 bed, 3 baths in Rossmoor. Located within a short distance to parks and shopping. Just a short drive to the Seal Beach pier. Great schools in the award winning Los Alamitos school district.
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700 E Ocean Blvd #607
Long Beach 90802
1 Bed | 1.5 Bath | 880 SF | $625,000
Amazing ocean views in this beautifully remodeled open floor plan condo at the iconic International Tower! This beautifully updated modern high-rise condo features hardwood flooring, fresh interior paint, scraped ceilings, and is light and bright with expansive ocean views.
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1985 San Francisco Ave.
Long Beach 90806
3 Bed | 2 Bath | 1,509 SF | $1,020,000
This historic gem awaits you in the charming Wrigley neighborhood of Long Beach! This gorgeous Spanish home, built in 1928, is full of charming curb appeal with its gated courtyard, porte cochere, red-tiled roof and front steps leading to the turret entry!
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