Southern California Real Estate Tips

Sept. 22, 2022

Real Estate Update - Week of 9/23/2022

Portrait Of Excited Family Standing Outside New Home

Last week, several encouraging indicators were released that suggest the economy continues to move forward despite various challenges. However, headwinds continue to emerge and although growth continues, it is downshifting. Inflation surprised to the upside, led by core goods showing little signs of slowing. At the same time, consumers have yet to meaningfully pull back on goods spending with real retail sales rising 2.1% in August. With the Fed announcing a .75% increase this week, mortgage rates have continued to increase. Home sales perked back up in August, but affordability will continue to suffer as rates are rising again after a brief reprieve in late July and August.

California existing single-family home sales bounce back amid temporary rate reprieve: August home sales rising back above 300,000 units is significant. Although we do not expect a rapid bounce back due to the Fed continuing to raise rates, the monthly increase in closed and pending sales suggests that the market may have priced in some of the rate increases. Still, buyers will continue to grapple with rising costs of borrowing, which will keep home sales below 350,000 for the remainder of the year.

Retail sales rise above inflation as consumers keep spending: Americans increased spending at stores and restaurants last month, showing persistent demand despite rising prices. The 0.3% gain in retail sales in August outpaced inflation and marked a reversal from July’s 0.4% decline revision. However, most of the recent gains in nominal retail sales is the result of higher consumer prices, and real spending has fallen in the 3 consecutive months preceding August’s slight gain. Looking ahead, savings rates are dwindling, and rising consumer credit suggest that we could see more moderation from this important engine of growth as we enter 2023.

Core inflation still running hot despite lower gas prices: Consumer prices in August grew just 0.1% from July, helping the headline inflation dip to 8.3% above last year. However, this number includes gas prices sliding 10.6% from the previous month. Core inflation, which is used by the Fed because it excludes more volatile energy and food prices, advanced by another 0.6% in August pushing the year-over-year pace upwards to 6.3% - more than triple the Fed’s 2% inflation target. As such, the Fed reaffirmed its commitment to an aggressive policy stance at the FOMC meeting this week.

Mortgage rates surpass 6% mark for first time since 2008: After easing slightly towards the end of July and August, mortgage rates jumped significantly higher last week. The recent CPI release have restoked fears that the Fed will continue to hike rates even beyond the .75% increase announced this weak. According to Freddie Mac’s weekly survey the 30-year fixed-rate mortgage averaged 6.29% as of September 22. That is more than 343 basis points higher than what it was a year ago at this time when it averaged 2.86% - more than double. The increase in rates will continue to weigh on homebuyer demand in coming months, as evidenced by the most recent decline in mortgage applications.

Signs of labor market slack begin to emerge: Although nonfarm payrolls grew modestly in 37 states during August, several states in the nation reported net losses. California was one of the states that continued to expand as employers report adding nearly 20K net new jobs in August across most major industries. However, this increase was significantly lower than the 91.4K jobs added in July and most of the pullback was reported in manufacturing, construction, and information. In the monthly survey of households, a slight contraction in employment combined with a rebound of 32.4K workers re-entering the labor force increased the state’s unemployment rate from 3.9% to 4.1% in August – the first increase in California’s unemployment rate since June 2021.

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.

Posted in Weekly Real Estate Update

no comments yet

Sept. 16, 2022

Real Estate Update - Week of 9/16/2022

Cheery young international couple with cute golden retriever dog sitting on floor of new home on relocation day. Happy millennial husband and wife with cute pet moving to new house

Mortgage rates continue to climb higher, in anticipation of another aggressive move that the Fed will likely take at the upcoming FOMC meeting to combat against high inflation. The 30-year fixed-rate mortgage has climbed more than 3% points since a year ago, and mortgage applications for purchase have declined in eight of the past ten weeks as housing affordability continued to deteriorate. The pullback in housing demand has also resulted in sellers cutting down their asking price as their homes sit on the market longer. Nearly half of all for-sale properties, in fact, have seen a price reduction according to the latest weekly data from MLS’s.

Single-family home sales moderate further: The market continues to show signs of normalization with sales dipping below last year’s level and price growth ebbing into low single digits. Homes are staying on the market longer (24 days) and sellers are reducing prices more frequently. However, with open-escrow sales rising on a month-to-month basis in both August and September so far, a bounce back in closed sales could be observed in the coming months.

Housing inventory rises but not due primarily to a rush in new listings: Inventory has been climbing in recent months and was up significantly from last couple years. Home sellers, however, do not appear to be heading for the exits as most of the uptick in inventory is due to a decline in sales rather than a flood of new listings hitting the market. New listings last week, in fact, were running roughly on par with the past two years. With many homeowners locked into historically low interest rates and the future of the housing market remaining unclear, many sellers opted to stay put rather than rushing to list their property.

More home sellers backing out: More sellers removed their listings from the market, results from the latest C.A.R. monthly member sentiment survey show. The share of REALTORS® who said sellers were removing their properties from the market grew in the last two months from 14.5% to 23.8%. The level was as high as what we observed during the pandemic shutdown and was the first time since May 2020 that the share went above 20%. Meanwhile, the share of members who have seen home sellers reduced their price to attract buyers increased for the fifth consecutive month to 43.4%. The share of buyers expecting lower prices also has more than doubled from 32% in April 2022 to 78% in September 2022.

Mortgage rates reach highest level since late 2008: The average 30-year fixed-rate mortgage (FRM) increased for the third consecutive week and took another step closer to the 6% benchmark. As of September 8, the weekly average for the FRM according to Freddie Mac’s survey, rose from 5.66% to 5.89% - the highest since 2008 and surpassed an earlier high of 5.81% set in June. The recent uptick in mortgage rates came once again in anticipation for more aggressive monetary policy that the Fed will likely implement later this month as the board attempts to keep high inflation under control.

Mortgage applications slip: The market composite index, a measure of mortgage loan application volume, decreased 0.8% on a seasonally adjusted basis for the week ending on September 2, compared to the week prior. Mortgage applications to purchase a home decreased 1% on a week-to-week basis and dropped 23% for the same week a year ago. With the cost of borrowing continued to ascend to its highest level since mid-June, application volume for purchase and refinance loans remained on a declining trend as the market entered the slow season of the year. Recent economic data suggests that any significant decline in mortgage interest rates in the near term is unlikely, which means housing demand will remain subdued for the next several months.

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.

Posted in Weekly Real Estate Update

no comments yet

Sept. 8, 2022

Real Estate Update - Week of 9/9/2022

Excited little funny african girl running exploring big modern house moving in_ happy black parents and kid daughter coming into new home_ cute mixed race child having fun in hallway_ family mortgage

While some of the latest reports on consumer confidence and housing sentiment might have painted a more positive picture for the housing market conditions in August, recent developments in the lending environment and the financial market suggest that we could see more market uncertainty ahead of us. With interest rates rising sharply in the past couple weeks and the S&P 500 index falling nearly 9% since mid-August, the housing market will likely encounter more headwinds in the fall as the risk of recession looms large while high inflation remains a concern.

Consumer confidence hits 4-month high in August: The Conference Board's monthly snapshot of consumer attitudes rose to 103.2 from July's downwardly revised 95.3. The share of consumers that see jobs as “plentiful” fell, but so too did the share finding jobs as “hard-to-get”. The expectations component shot up almost 10 points to 75.1. While that is an improvement, it still places the measure at a point that is lower than all but three months in the past eight years. Gas prices at 4-month low might have provided some relief to consumers last month, but the decline in stock prices since mid-August could weigh on confidence in the coming month if markets continue to dip.

Housing sentiment improves as prices dip: Consumers’ optimism bounced back last month as rates declined in early August while home prices continued to moderate. Results from the C.A.R.’s latest monthly sentiment survey showed that respondents who believed it was a good time to buy a home rose month-over-month for the third straight month to 19%. As the average 30 year fixed-rate mortgage dipped below 5% in the first week of August, some buyers might have seized a rare opportunity to buy during that time window. Meanwhile, those who believed it was a good time to sell a home continued to decline to 52% and dropped sharply again from last August’s 72%. With interest rates started rising since mid-August, housing sentiment will likely reverse its direction in September. In fact, two-thirds (64%) of the consumer respondents still believed that the overall economic conditions in California would not improve in the next 12 months, and three quarters (75%) believed that interest rates would rise in the next 12 months.

Mortgage rates reach highest level in two months: Since dipping below 5% - a 4-month low - in early August, interest rates have been climbing throughout most of August with the 30-year fixed-rate mortgage (FRM) averaging 5.66% in the latest Freddie-Mac’s weekly survey. A year ago, the 30-year FRM averaged 2.87%. Higher interest rates have hurt buyer demand significantly, with purchase applications declined in eight of the last nine weeks. As sellers continue to recalibrate their pricing to accommodate lower demand, home prices will likely level off further as the market moves into the fall season.

Construction spending dips for the second consecutive month: Total construction spending declined 0.4% during July, as the drop in residential construction spending more than offset the gains by nonresidential construction. Higher mortgage rates combined with elevated construction costs have put a damper on the market – especially residential. Spending on single-family construction dropped 4% in July, as single-family starts fell to the lowest reading since June 2020 and builder confidence plunged in July. Multifamily spending also dipped 0.6% month-over-month, but still running at a $100.4 billion dollar pace in July 2022, which is close to the record high set 12 months ago. Home improvement spending, meanwhile, rose 1.5% in July, as homeowners decide to stay put instead of trading up/down. With building material prices stabilizing while interest rates remaining elevated, construction spending could dip further in coming months.

‘Goldilocks’ jobs report suggests a strong labor market: Nonfarm payroll growth tamed down in August with a still solid 315k gain, after adding more than half a million jobs in July. With the labor participation rate rising from 62.1% to 62.4% - which could be a signal that more workers are returning, the unemployment rate in August increased to 3.7%. Despite the increase in the unemployment rate, strong jobs growth continued to push average hourly earnings up from a year ago by 5.2%. The above 5% growth rate suggests that the Fed still has more work to do in the months ahead to bring inflation down. A 75-bps rate hike at the next FOMC’s meeting in September is a real possibility.

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.

SEARCH HOMES FOR SALE

HOME SEARCH

APP

WHAT'S MY HOME WORTH?

Posted in Weekly Real Estate Update

no comments yet

Sept. 1, 2022

Real Estate Update - Week of 9/2/2022

Labor Day USA background with starfishes and decorations on the sandy beach

Despite a drop in gas prices that has provided some near-term relief for Americans, elevated food prices and rent continued to keep cost of living at a painfully high level. The same is true for buyers in the housing market. The combination of elevated home prices, higher mortgage rates and slower income growth has reduced affordability and dampened both new and existing home sales. That said, while Americans’ incomes rose more slowly in July, those gains were not swallowed up by higher prices for the first time in the past few months. The latest revision on the second quarter Gross Domestic Product also offers some encouraging news last week, as both consumer spending and business investment have held up better than expected, suggesting a slightly stronger economy than previously reported.

New listings began declining year-over-year since June: For-sale properties added to the market were again down 15.8% from one year ago. This week marks a seventh straight week of year-over-year decline in the number of new listings and a second consecutive week with a drop of more than 10 percent. The ongoing trend suggests that homeowners are less eager to list their homes for sale compared to last year, even though today’s median listing price is more than 7.1% higher. So, while the market is seeing an improvement in the overall inventory level, the increase is mostly due to a drop in demand rather than an increase in new active listings.

New home sales tumbled in July: New home sales fell 12.6% in July to a 511,000-unit pace. July's drop is hardly a surprise given the sharp pullback in home builder confidence reported last week, as well as a pull back in buyer demand due primarily to lowered housing affordability. July's sales pace for new homes went down a whopping 29.6% from July 2021 and year-to-date sales were running 15.7% below their year-ago level. With sales slowing, the inventory of new homes has risen sharply. The number of new homes for sale rose 3.1% to 464,000 units, the highest level since March 2008. With Inventory of new homes rising to 10.9 months, price growth should moderate, while affordability could improve in coming quarters.

Consumer sentiment improved in August as inflation eased: The final estimate of the consumer sentiment index published by the University of Michigan came in at 58.2, up from 51.5 in July as well as the all-time low recorded in June. Despite the two-month improvement, sentiment among American households remains subdued compared to the same month of last year and to historical standards. Most of the increase in sentiment was due to an improved expectation on the outlook for the economy, with respondents anticipating improved business conditions in the next six months. However, the survey report also noted that while more than half of consumers expect to see their incomes grow over the next year, only 18% expect their income growth to exceed inflation.

U.S. income growth slowed in July, and consumer spending barely grew: Consumer spending increased 0.1% in July from a month earlier, with an uptick in outlays on services and long-lasting goods, and a decrease in gasoline spending. The latest numbers reflect a slowdown from June, which saw spending increased by 1%. Meanwhile, the U.S. Department of Commerce also noted in their latest report, that personal income edged up modestly by 0.2% in July, the most since February, led by private wages and salaries.

2022 Q2 GDP revised numbers show economy shrunk, but not as much as previously estimated: The economy contracted at an annual 0.6% pace in the second quarter, as high inflation and rising interest rates weakened U.S. growth. Initially, the government had said gross domestic product had shrunk at a 0.9% clip in the three-month span covering April to June, but their revision showed stronger consumer expenditures and more investment in business inventories than previously reported. Household spending, which accounts for roughly 70% of the economy, improved by 1.5% in the spring instead of 1% reported in the preliminary estimate. Businesses increased profits again after a decline in earnings in the first quarter, with adjusted pretax corporate profits rising 6.1% in the second quarter.

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.

SEARCH HOMES FOR SALE

HOME SEARCH

APP

WHAT'S MY HOME WORTH?

For Sale

700 E Ocean Blvd. #607

Long Beach 90802

1 Bed | 2 Bath | 880 SqFt | $625,000

Amazing ocean views from every room in this spacious, bright, beautifully updated modern open floor plan high-rise condo.

In Escrow

3595 Santa Fe Ave. #21

Long Beach 90810

2 Beds | 2 Bath | 1,506 SqFt | $450,000

Why rent when you can own! Great opportunity to own this 2 bedroom 2 bath home in a gated community!

Recently Sold

853 E. Helmick St

Carson 90746

4 Beds | 2 Bath | 1,612 SqFt | $820,000

Welcome home to this beautiful 4 bedroom home in a highly sought after neighborhood in Carson.

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.

4034 Country Club Dr.

Lakewood 90712

3 Beds | 4 Baths | 3,358 SqFt | $1,819,798

Absolutely beautiful golf course, pool home in Lakewood Country Club Estates.

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.

1310 E. Ocean Blvd #1403

Long Beach 90802

2 Beds | 3 Baths | 2,014 SqFt | $1,575,000

Absolutely breathtaking ocean views from every room in this oceanfront penthouse condo at the Ocean Club

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.

SEARCH HOMES FOR SALE

HOME SEARCH

APP

WHAT'S MY HOME WORTH?

Posted in Weekly Real Estate Update

no comments yet

Aug. 26, 2022

Real Estate Update - Week of 8/26/2022

Trendy outdoor patio pergola shade structure_ awning and patio roof_ garden lounge_ chairs_ metal grill surrounded by landscaping

Housing sentiment continued to sink for both the supply side and the demand side as market’s buying conditions remained sour. Not only did homebuilders scale back in production as suggested by the dip in building permits, but potential homebuyers have also hit the brake hard as market uncertainty and high costs of borrowing lingered on. Closed sales for existing single-family homes have taken a beating as the market has shifted in response to the recent surge in interest rates, while pending sales suggested that the market could remain soft in August. The pace of sales declines is expected to decelerate in the coming months, however, as rates continue to stabilize, market volatility begins to subside and supply conditions further normalize. A bounce back in California’s employment situation, was perhaps the silver lining in last week’s news, as it hints on an economy that could remain resilient in the third quarter, despite a back-to-back decline in GDP in the first and second quarter of the year.

Rising interest rates and affordability crunch drag down July home sales and prices: Housing demand in California cooled further in July as the effects of rising interest rates and high home prices hit would-be homebuyers, dragging home sales below the annualized 300,000 benchmark level for the first time since May 2020. Existing single-family home sales totaled 295,460 in July on a seasonal adjusted annualized rate, down 14.4% from June and 31.1% from July of last year. The statewide median home price was $833,910, down 3.5% from June and up 2.8% from July 2021. While high home prices and rising interest rates depressed housing affordability and in turn dampened demand in the midst of the peak home-buying season, buying opportunities remain in the coming months for those who have been waiting on the sideline as more listings become available, competition continues to cool off and rates begin to stabilize.

Homebuilders’ sentiment turns negative: According to the National Association of Home Builders/Wells Fargo Housing Market Index, homebuilders have become more pessimistic as their sentiment towards the housing market dropped another 6 points in August to 49. This marked the eight straight decline in the index and the first time it dipped below 50 since June 2014, excluding a very brief plunge at the start of the Pandemic. Of its three components, current sales conditions saw the largest drop by 7 points, though sales expectations in the next six months and buyer traffic also declined by 2 and 5 points, respectively. Homebuilders’ confidence has deteriorated as buyer demand continued to be diminished by affordability constraints. Despite higher costs for land, labor, and buildering materials, about 1 in 5 builders in August reported lowering prices by about 5% in the past month in an effort to increase sales or limit cancellations.

Housing starts decline sharply in July as building material prices rise and demand for housing softens: Higher mortgage rates upend residential construction in July with total housing starts falling 9.6% from June and 8.1% from July of last year. Single-family starts declined 10.1%, and while upward revision to starts during June helped take some sting out of July’s sharp decline, single-family starts have now declined for five consecutive months. The pull-back was attributed primarily to higher mortgage rates, which have significantly worsened affordability and caused buyers to hold off on their housing demand. With building permits declining 1.3% in the latest report, starts will likely fall further in the upcoming months.

California employment improves as hiring rebounds in July: After a bit of a slump this spring, hiring perked back up in July. California’s employers added a nation’s best 84,800 jobs in July, marking the largest gain since February. The job gains were broad based but the resurgence in hiring appears to have been driven by a rebound in tech hiring. The state’s unemployment rate dipped to the new low, dropping 0.3% to 3.9% - the lowest level since 1976. While this rebound in hiring is good news for California’s economy, it is also becoming more evident that the labor market is cooling off as job openings fell 212,000 in June. California’s 15.7% drop was by far the largest of any state and brought job openings back down to the lowest level since August of last year.

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.

SEARCH HOMES FOR SALE

HOME SEARCH

APP

WHAT'S MY HOME WORTH?

For Sale

700 E Ocean Blvd. #607

Long Beach 90802

1 Bed | 2 Bath | 880 SqFt | $625,000

Amazing ocean views from every room in this spacious, bright, beautifully updated modern open floor plan high-rise condo.

OPEN HOUSE SUNDAY (8/28)

12:00 - 3:00 PM

In Escrow

3595 Santa Fe Ave. #21

Long Beach 90810

2 Beds | 2 Bath | 1,506 SqFt | $450,000

Why rent when you can own! Great opportunity to own this 2 bedroom 2 bath home in a gated community!

Recently Sold

853 E. Helmick St

Carson 90746

4 Beds | 2 Bath | 1,612 SqFt | $820,000

Welcome home to this beautiful 4 bedroom home in a highly sought after neighborhood in Carson.

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.

4034 Country Club Dr.

Lakewood 90712

3 Beds | 4 Baths | 3,358 SqFt | $1,819,798

Absolutely beautiful golf course, pool home in Lakewood Country Club Estates.

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.

1310 E. Ocean Blvd #1403

Long Beach 90802

2 Beds | 3 Baths | 2,014 SqFt | $1,575,000

Absolutely breathtaking ocean views from every room in this oceanfront penthouse condo at the Ocean Club

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.

SEARCH HOMES FOR SALE

HOME SEARCH

APP

WHAT'S MY HOME WORTH?

Posted in Weekly Real Estate Update

no comments yet

Aug. 19, 2022

Real Estate Update - Week of 8/19/2022

Beautiful homes and estates in the Santa Monica City_ California.

The latest CPI report gave hope that rapid inflation might be starting to soften, but consumers’ purchasing power continues to be hindered by higher prices for goods and services across the board. That is doubly true in the housing market — only 16% of California households could afford to purchase the median-priced home according to C.A.R.’s Q2-2022 Housing Affordability Index. The average rate on the 30-year fixed-rate mortgage is nearly twice what it was at the start of this year despite having come down modestly in recent weeks. As a result, demand has fallen and supply is gradually rising, which is leading to a more balanced market for buyers and sellers.

Market finding bottom or temporary blip?: After dropping precipitously in recent months, the first few weeks of August show that the market may be searching for a bottom on transactions. Through the first two weeks of the month, pending sales are actually up 1.9% from where they were last month. Although a modest increase, it is encouraging that pending sales have not fallen further in August. Recent trends in mortgage rates may have motivated some potential homeowners to take advantage of the fall from nearly 6% a few months ago to just 5.22% in the latest weekly data. The market continues to see competition ebb from red-hot levels with just 35% of homes closed last week selling over list price. That marks a steep deceleration from March, when 3 out of every 4 homes was selling for more than they were listed for on the MLS.

California housing affordability slides to the lowest in nearly 15 years in Q2-2022: As home price set a record high during the second quarter of this year, mortgage interest rates were also surging to nearly double of what they were the same time of last year. This combination has severely impacted housing affordability in California. Only 16% of California households could afford to purchase the $883,370 median-priced home in the second quarter of 2022, which dropped from 24% the previous quarter and from 23% the same quarter of last year. Household needed a minimum annual income of $199,200 in order to make the $4,980 including principal, interest and taxes on a 30-year fixed-rate mortgage at a 5.39% interest rate. Nationwide housing affordability also plunged in the second quarter of 2022.

Consumer confidence in the housing market improves slightly but remains subdued: The July 2022 California Housing Sentiment Index by California Association of REALTORS®(C.A.R.), revealed that buyers are beginning to see a light at the end of the tunnel by observing a tapering in both the price growth of homes and mortgage interest rates, as well as more inventory to choose from. However, sellers seem to be holding back a bit as they have grown more pessimistic that it is the right time to sell. The component of the index tracking consumers’ perspective on the ‘right time to sell’ slipped for the fourth consecutive month, to 60%, as indicators of market competitiveness show buyer demand has cooled-off from its highs due to affordability challenges.

Homebuilders’ confidence in worst slump since 2007 collapse: The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index dropped 6 points in August to 49. This marks the eight straight decline in the index and the worst stretch since the housing market collapsed in 2007. Builder confidence is tumbling as high mortgage rates exacerbate affordability challenges, on top of elevated costs of materials and labor. The recent increase in housing inventory and a drop in home sales have led more homebuilders to be pessimistic about the outlook for future sales than those that remain optimistic.

July Consumer Price Index (CPI) foot off the gas: Inflation in July rose 8.5% from a year ago, but on a monthly basis, was flat as energy prices broadly declined 4.6% and gasoline fell 7.7%, according to the Bureau of Labor Statistics (BLS). That offset a 1.1% monthly gain in food prices and a 0.5% increase in shelter costs. Excluding volatile food and energy prices, the core CPI rose 5.9% annually and 0.3% from June. Consumers are still worse-off than they were last year when it comes to their purchasing power, but this is a positive sign that inflation may start to cool. However, inflation remains near the highest levels since the early 1980s, which means the Fed will continue to take an aggressive stance in their monetary policy for the foreseeable future.

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.

SEARCH HOMES FOR SALE

HOME SEARCH APP

WHAT'S MY HOME WORTH?

For Sale

700 E Ocean Blvd. #607

Long Beach 90802

1 Bed | 2 Bath | 880 SqFt | $625,000

Amazing ocean views from every room in this spacious, bright, beautifully updated modern open floor plan high-rise condo.

In Escrow

3595 Santa Fe Ave. #21

Long Beach 90810

2 Beds | 2 Bath | 1,506 SqFt | $450,000

Why rent when you can own! Great opportunity to own this 2 bedroom 2 bath home in a gated community!

Recently Sold

853 E. Helmick St

Carson 90746

4 Beds | 2 Bath | 1,612 SqFt | $820,000

Welcome home to this beautiful 4 bedroom home in a highly sought after neighborhood in Carson.

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.

4034 Country Club Dr.

Lakewood 90712

3 Beds | 4 Baths | 3,358 SqFt | $1,819,798

Absolutely beautiful golf course, pool home in Lakewood Country Club Estates.

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.

1310 E. Ocean Blvd #1403

Long Beach 90802

2 Beds | 3 Baths | 2,014 SqFt | $1,575,000

Absolutely breathtaking ocean views from every room in this oceanfront penthouse condo at the Ocean Club

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.

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.

SEARCH HOMES FOR SALE

HOME SEARCH APP

WHAT'S MY HOME WORTH?

Posted in Weekly Real Estate Update

no comments yet

Aug. 12, 2022

Real Estate Update - Week of 8/12/2022

Last week we celebrated the recovery of all jobs lost in 2020, and the unemployment rate dipped back to the lowest level since 1969. The latest jobs report showed that the labor market remains strong despite other signs of economic weakness. This unexpected surge in hiring, however, also put further pressure on the Fed to act aggressively in its fight against inflation. Aggressive interest rate hikes from the Fed are a potential threat to the economy at this point of the business cycle and could trigger further slowdown in economic activity in the upcoming quarters. With interest rates expected to rise while home prices remaining elevated, the housing market will continue to face growing affordability challenges in the near term.

California housing market continues to show signs of a slowdown: The latest daily-average weekly-sales number for week ending August 6 fell to the lowest this year and neared the lowest number recorded during the pandemic induced shutdown in 2020. Consistent with a softening single-digit price growth and an increasing share of active listings with price reduction reaching 41.4%, nearly 8/10 members of the California Association of REALTORS® (C.A.R.) indicated in the latest survey that buyers were indeed expecting lower prices. This combined with recent dip in mortgage rates will hopefully boost sales activity again in the coming weeks.

Mortgage rates dip below 5% but will likely bounce back: While mortgage rates remained volatile due to the tug of war between decades-high inflation and the possibility of a recession, the 30-year fixed-rate mortgage (FRM) dipped below 5% for the first time in nearly 4 months averaging 4.99% for the week ending August 4. The week prior, the 30-year FRM averaged 5.30% and the same week of last year it averaged 2.77%. Supply constraints and a tight labor market will likely push rates back up, especially since the Fed is determined to bring inflation down even at a cost of a slight economic downturn.

Strong jobs report cast doubt on the possibility of the recession: Nonfarm payrolls rose 528,000 in July, pushing the unemployment rate down to 3.5%. The unemployment rate is now back to its pre-pandemic level and tied for the lowest since 1969. Meanwhile, wage growth surged higher, as average hourly earnings jumped 0.5% from the prior month and 5.2% from the same time last year. The increase could have an effect on Fed’s monetary policy tightening decision as strong wage growth adds fuel to an inflation picture that already has consumer prices rising at their fastest pace since early 1980s.

More prospective buyers are actively searching for a home: The share of prospective buyers who were actively engaged in the process to buy a home rose to 49% in the second quarter 2022, after declining for 3 consecutive quarters. Fewer competitions and cooling off in demand for housing due to affordability constraints, led to a significant growth in housing inventory, which might have encouraged those who remained in the market to be more aggressive in their home search. An increasing number of homes with a price reduction might also have provided buyers an incentive to get back into the market.

Homeownership rate tickles up despite affordability challenges: The Census Bureau’s Housing Vacancy Survey (CPS/HVS) reported the U.S. homeownership rate at 65.8% in the second quarter of 2022, a slight increase from last quarter’s 65.4%. Buyers were feeling the budget pressure as rates continued to rise, but creative financing and the strong desire to own helped many buyers pushed through in the second quarter anyway. The national rental vacancy rate slipped to 5.6%, while the homeowner vacancy rate stayed at 0.8%. Both rental and homeowner vacancy rates were hovering near historical lows, reflecting tight housing market conditions.

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.

SEARCH HOMES FOR SALE

HOME SEARCH APP

WHAT'S MY HOME WORTH?

For Sale

700 E Ocean Blvd. #607

Long Beach 90802

1 Bed | 2 Bath | 880 SqFt | $625,000

Amazing ocean views from every room in this spacious, bright, beautifully updated modern open floor plan high-rise condo.

3595 Santa Fe Ave. #21

Long Beach 90810

2 Beds | 2 Bath | 1,506 SqFt | $450,000

Why rent when you can own! Great opportunity to own this 2 bedroom 2 bath home in a gated community!

Recently Sold

853 E. Helmick St

Carson 90746

4 Beds | 2 Bath | 1,612 SqFt | $820,000

Welcome home to this beautiful 4 bedroom home in a highly sought after neighborhood in Carson.

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.

4034 Country Club Dr.

Lakewood 90712

3 Beds | 4 Baths | 3,358 SqFt | $1,819,798

Absolutely beautiful golf course, pool home in Lakewood Country Club Estates.

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.

1310 E. Ocean Blvd #1403

Long Beach 90802

2 Beds | 3 Baths | 2,014 SqFt | $1,575,000

Absolutely breathtaking ocean views from every room in this oceanfront penthouse condo at the Ocean Club

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.

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.

SEARCH HOMES FOR SALE

HOME SEARCH APP

WHAT'S MY HOME WORTH?

Posted in Weekly Real Estate Update

no comments yet

Aug. 5, 2022

Real Estate Update - Week of 8/5/2022

Entrance to a beautiful Palm Springs home

Inflation and recession remained the economy’s focal points last week. Despite the Feds’ decision to remain aggressive in their rate hike move, weaker-than-expected economic growth in the second quarter prompted interest rates to decline further since the release of the latest GDP report. The average 30-year fixed rate mortgage, in fact, dipped to the lowest level since mid-April, according to Mortgage News Daily. The slightly more favorable lending environment, coupled with a higher level of housing supply, may have provided a window of opportunity for homebuyers who have been standing on the sideline for the past few months.

Sharp decline in new home sales: Consistent with the resale housing market, new home sales fell 8.1% to 590,000 in June from the prior month and dropped 17.4% from the same month of last year. Affordability has become an even bigger issue in recent months, and some would-be homebuyers simply could not afford the higher monthly payments as interest rates surged. The slowdown in demand, on the other hand, pushed new home inventory up to 9.3 months, the highest level since May 2010. Builders, in response to the softening in home sales, reduced prices and offered incentives to buy down mortgage rates. As such, the median price of a new home sold in June was down 9.5% from May but remained up 7.4% from last June.

Home builders cut back on spending in June: Developers responded to the slowdown in buyer traffic and the spike in inventories by curtailing home building activity. Overall construction spending fell 1.1% in June from the prior month and had its first month-over-month decline since September 2021. Declines were evident across most sectors, with spending in the private sector falling 1.3% and spending for public work projects dipping 0.5%. Construction outlays for new single-family homes took a hard hit, with their June’s figure plunging 3.1% month-over-month, but spending for multifamily projects continued to rise 0.4% in the latest month. With rates and home prices remaining elevated, home building activity will likely slow further in the next few months as demand continues to pull back.

GDP posts back-to-back declines: The U.S. economy contracted again in the second quarter, with real Gross Domestic Product (GDP) dropping at an annual rate of 0.9% after dipping 1.6% in the first quarter. While consumer spending, which accounts for two-thirds of total economic output, grew at a 1% annual rate in the second quarter, inventories and residential investment accounted for much of the decline. Residential investment, in fact, declined 14.0%, as builders scaled back due to concerns about homebuyers’ affordability challenges. With the strength of the labor market remaining solid, it is debatable whether the back-to-back quarters of negative GDP growth constitutes a recession. There is no doubt that the economy is cooling nonetheless, and the Fed’s tight monetary policy will keep the lid on economic growth in the short term.

Fed raised rates: The Federal Reserve hiked the federal funds rate up another 75 basis points to a range between 2.25% and 2.5% in the July Federal Open Market Committee (FOMC) meeting. With the rate hike last week, the central bank has increased rate to a level last seen since mid-2019. The increase was widely anticipated as the June’s 40-year high inflation rate reflected a level of price growth that had yet to be contained. The statement released after the FOMC meeting also suggests that more tightening is likely to come when the Committee meets again in September. The Fed Chairman, however, said that the pace “will depend on incoming data and the evolving outlook for the economy.”

Consumer confidence at 17-month low: Consumer confidence declined on a monthly basis for the third consecutive month, with the present situation dropping the most in 12 months, while the expectation index fell to the lowest level since 2013. With costs of living outpacing their wage growth, consumer optimism continues to falter. About 43% of those who responded to the latest monthly survey believed there is a greater than 50% chance that the U.S. will experience a recession in the next 12 months, while only 13% believed that would be the case in April. Consumers’ assessment of the labor market also dipped in the recent report. The difference in those reporting jobs as “plentiful” less those who report jobs as “hard to get” fell to 37.8%, its lowest reading in over a year.

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.

SEARCH HOMES FOR SALE

HOME SEARCH APP

WHAT'S MY HOME WORTH?

For Sale

3595 Santa Fe Ave. #21

Long Beach 90810

2 Beds | 2 Bath | 1,506 SqFt | $450,000

Why rent when you can own! Great opportunity to own this 2 bedroom 2 bath home in a gated community! OPEN HOUSE this Sunday (8/7) 1:00 - 4:00 pm

In Escrow

700 E Ocean Blvd. #607

Long Beach 90802

1 Bed | 2 Bath | 880 SqFt | $625,000

Amazing ocean views from every room in this spacious, bright, beautifully updated modern open floor plan high-rise condo.

Recently Sold

853 E. Helmick St

Carson 90746

4 Beds | 2 Bath | 1,612 SqFt | $820,000

Welcome home to this beautiful 4 bedroom home in a highly sought after neighborhood in Carson.

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.

4034 Country Club Dr.

Lakewood 90712

3 Beds | 4 Baths | 3,358 SqFt | $1,819,798

Absolutely beautiful golf course, pool home in Lakewood Country Club Estates.

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.

1310 E. Ocean Blvd #1403

Long Beach 90802

2 Beds | 3 Baths | 2,014 SqFt | $1,575,000

Absolutely breathtaking ocean views from every room in this oceanfront penthouse condo at the Ocean Club

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.

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.

SEARCH HOMES FOR SALE

HOME SEARCH APP

WHAT'S MY HOME WORTH?

Posted in Weekly Real Estate Update

no comments yet

July 29, 2022

Real Estate Update - Week of 7/29/2022

Concerns about rising rates, unabated inflation and a potential near-term recession continue to manifest in more areas of the housing industry. A market shift with softening demand for housing has become more evident this past week, as mortgage volume applications reached their lowest level in 22 years, housing starts plunged to a 2-year low, and home builders’ sentiment continued to deteriorate with the decline in buyer traffic. The sharp rise in borrowing costs is leading home builders to scale back production plans, with single-family permits recently taking a downward trajectory. A cooled-off job market is likely to take even more wind out of the housing market as job growth continues to shrink, while jobless claims remain on an upward trend since April.

Home builder sentiment plunges in July as buyers pull back: Builder sentiment dropped 12 points to 55, according to the monthly survey from the National Association of Home Builders (NAHB). The dip marks the largest single-month drop in the survey’s 37-year history, except for April 2020 at the onset of the pandemic. Home builders’ concerns about inflation and recession were among the top factors putting a toll on the sentiment of the current sales conditions, expectations in the next six months, and their views on buyer traffic.

Single-family starts fall to two-year low on higher construction costs and interest rates: For the first time since June 2020, both single-family starts and permits fell below the one-million annual pace as high interest rates and elevated construction costs continued to put a damper on the single-family housing market. Overall housing starts fell 2.0% to a seasonally adjusted annual rate of 1.56 million units in June from an upwardly revised reading recorded in the previous month. Reduced housing demand will continue to have a weakening impact on single-family home building in the months ahead.

Mortgage applications declined for the third week in a row, reaching the lowest level since 2000: Mortgage loan application volume decreased 6.3% on a seasonally adjusted basis from one week earlier and the seasonally adjusted Purchase Index decreased 7% for the same time period. The pullback in housing demand is becoming more evident in the lending sector, as weakening economic outlook, high inflation, and persistent affordability challenges remain obstacles for buyers, resulting in mortgage loan application volume sinking to its 22-year low. The decline in recent purchase applications is consistent with slower homebuilding activity due to reduced buyer traffic, ongoing building material shortages, and higher construction costs.

California payroll growth moderates in June: Employers added 19,900 jobs across California during June, the smallest gain of the year and fell well short of the 71,000 jobs added per month on average during the first five months of this year. Growth in the number of employed Californians still outpaced the growth in the labor force, which helped cut California’s unemployment rate in June by another 0.1% to 4.2%, even as the rebound from the pandemic appeared to be losing steam.

Jobless claims rise again, providing another sign that the labor market is cooling: Initial jobless claims totaled 251,000 for the week ending July 16, inching up 7,000 from the week prior to the highest weekly level since mid-November 2021.While jobless claims are volatile on a week-to-week basis, the four-week moving average has steadily trended higher since April. Claims were still relatively low, especially compared to recessionary periods when they tend to rise well above 300,000. The recent increase, however, is a signal that the tight labor market is starting to loosen up and is likely to take even more wind out of the housing market's sails.

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.

SEARCH HOMES FOR SALE

HOME SEARCH APP

WHAT'S MY HOME WORTH?

For Sale

700 E Ocean Blvd. #607

Long Beach 90802

1 Bed | 2 Bath | 880 SqFt | $625,000

Amazing ocean views from every room in this spacious, bright, beautifully updated modern open floor plan high-rise condo.

Coming Soon

3595 Santa Fe Ave. #21

Long Beach 90810

2 Beds | 2 Bath | 1,506 SqFt | $450,000

Why rent when you can own! Great opportunity to own this 2 bedroom 2 bath home in a gated community! Coming Soon!

Recently Sold

853 E. Helmick St

Carson 90746

4 Beds | 2 Bath | 1,612 SqFt | $820,000

Welcome home to this beautiful 4 bedroom home in a highly sought after neighborhood in Carson.

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.

4034 Country Club Dr.

Lakewood 90712

3 Beds | 4 Baths | 3,358 SqFt | $1,819,798

Absolutely beautiful golf course, pool home in Lakewood Country Club Estates.

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.

1310 E. Ocean Blvd #1403

Long Beach 90802

2 Beds | 3 Baths | 2,014 SqFt | $1,575,000

Absolutely breathtaking ocean views from every room in this oceanfront penthouse condo at the Ocean Club

SEARCH HOMES FOR SALE

HOME SEARCH APP

WHAT'S MY HOME WORTH?

Posted in Weekly Real Estate Update

no comments yet

July 21, 2022

Real Estate Update - Week of 7/22/2022

Modern villa with colored led lights at night. Nobody inside

Although recently released data points to rising macroeconomic uncertainty that is beginning to spill over into the housing market, prospective homebuyers are beginning to enjoy some of the benefits of a shifting market. To be sure, rising rates have reduced buyer purchasing power, but rising inventories and reduced competitiveness means that buyers who remain in the market have a better shot at having their offer accepted than at any point since the pandemic began.

Inventory Now Exceeds Pre-Pandemic Levels: After more than two years of consistent year-over-year declines in the number of active listings available for sale, the inventory shortage has shown consistent signs of improving in recent weeks. Last week, there were more active listings on the market than at any time in the past two years. Nearly 48,000 were on the market last week, which edges out the week of May 23, 2020 as the highest level of active listings since we began reporting weekly MLS statistics at the beginning of 2020. It is important to note that listings still remain depressed by historical standards, but it is encouraging to see them trend upward on a more consistent basis this year.

Rising Inventory Helping Homebuyers: As the number of homes to choose from rises, homebuyers are finding the market less frenzied than at any point since the pandemic began. Last week, the percentage of homes that sold over list price dipped to 46% of closings. That is only the second week since September 2020 where fewer than half of homes sold above list price. In addition, more sellers are willing to reduce their price, with 37% of active listings down from original list price last week—also a 2+ year high. Taken together with a recent reduction in rates, buyers currently in the market should be encouraged by rising prospects of finding a home and having their offer accepted.

Mortgage Rates Begin to Rise Again: After two consecutive declines in the weekly rate posted by Freddie Mac, the average 30-year fixed-rate mortgage rose last week. At 5.51%, rates are still lower than they were last month, but that represents a 20 basis-point increase from the week prior. Given the expectation of a rate increase in the 75-100 basis-point range at the upcoming Federal Reserve meeting, it is likely that mortgage rates will continue their upward trend as inflationary pressures remain and demand for short-term bonds wane.

Declining Mortgage Applications Accelerate: The number of prospective homebuyers applying for residential purchase loans dropped 18% last week compared to the same week 1 year earlier. This marks the 60thconsecutive week of year-to-year declines in mortgage applications that began after the peak homebuying season last summer. Through the first two weeks of July, mortgage applications are at their lowest level of any July going back to 2014. This suggests that recent reading on pending sales in California, which suggested further moderation in home sales in July and August, should be given credence.

Home Sales Dip to 12-Year Low: Existing, single-family detached home sales in California was down 8.4% on a monthly basis from 376,560 in May and down 20.9% from a year ago, when 436,020 homes were sold on an annualized basis. Outside of the initial lockdown in the Spring of 2020, this is the lowest level of home sales since 2008. California’s median home price declined 4.0% in June to $863,790 from the revised record-high of $900,170 recorded in May. The June price was 5.4% higher than the $819,630 recorded last June. The moderation in the median home price was due partly to a change in the mix of sales in June, as the high-end market started pulling back.

Rising Prices Begin to Weigh Consumers Down: The latest reading on inflation showed the issue getting worse rather than coming in for a soft landing. The consumer price index (CPI) rose 9.1% on a year-over-year basis in June, which was another 40-year high and suggests that recent hopes that the Fed may ease off their aggressive schedule of rate hikes may be misplaced. Outside of motivating the Fed, rising prices are also expected to begin eating into overall economic growth as, despite a nominal increase in retail sales, real spending has declines in 3 of the last 4 months.

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.

SEARCH HOMES FOR SALE

HOME SEARCH APP

WHAT'S MY HOME WORTH?

For Sale

700 E Ocean Blvd. #607

Long Beach 90802

1 Bed | 2 Bath | 880 SqFt | $625,000

Amazing ocean views from every room in this spacious, bright, beautifully updated modern open floor plan high-rise condo.

Coming Soon

3595 Santa Fe Ave. #21

Long Beach 90810

2 Beds | 2 Bath | 1,506 SqFt | $450,000

Why rent when you can own! Great opportunity to own this 2 bedroom 2 bath home in a gated community! Coming Soon!

Recently Sold

853 E. Helmick St

Carson 90746

4 Beds | 2 Bath | 1,612 SqFt | $820,000

Welcome home to this beautiful 4 bedroom home in a highly sought after neighborhood in Carson.

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.

4034 Country Club Dr.

Lakewood 90712

3 Beds | 4 Baths | 3,358 SqFt | $1,819,798

Absolutely beautiful golf course, pool home in Lakewood Country Club Estates.

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.