Long Beach/Southern California Real Estate

8/05/2022

Where is Market Pricing for last 90 days in Long Beach, Cypress, Lakewood?

View toward downtown Long Beach

The following cities sold statistics for single family homes for the last 90 days:

Cypress, average sale price of 56 homes: $1,055,946, 15 days on market.

Long Beach, average sale price of 446 homes: $1,052,166, 15 days on market

Lakewood, average sale price of 176 homes: $830,722, 14 days on market

Julia Huntsman, REALTOR, Broker | http://www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

Housing Update in Los Angeles County and Southern California

Interest rates and inflation are issues right now, not just here but globally. Older populations in some other countries are problematic, without replacement population the consumer consumption is less.

In the U.S., the Fed is trying to slow down inflation with rate hikes on many instruments, such as credit cards, but the Fed doesn't control the mortgage interest rates, per se. Mortgage interest rates were over 6% in June, but are now down to just over 5%, with it being an extremely volatile market. 6.5% is a slight buyer's market, 4.5% is a slight seller's market.

Do two negative quarters of the GDP indicate a recession? The National Bureau of Economic Research calls the recession, and doesn't use the model of two negative quarters, but uses several other combined market indicators which it says are not yet flashing red. The jobs statistics came out very strong, and with current consumer consumption, which accounts for 70% of the U.S. economy, keep from calling a complete recession. And recession doesn't equal a housing crisis, with interest rates going lower there is an increasing demand for housing.

Inventory in Southern California has climbed from 10,000 listings in January to over 30,000 listings in August. The peak is projected to be in September, which means we are not yet back to pre-COVID market norms. In Los Angeles County, 31% of inventory has reduced its price, due to the current market shift and slow down. Last year time on market was 33 days, today it's 77 days in Los Angeles County, which is still considered a seller's market, 90-120 days on market is considered a balanced market, and above that is more of a buyer's market.

Sellers: Rather than reduce your price, offer the buyers a rate buy down.

Thanks to Steven Thomas for his excellent Housing Market Report.

Julia Huntsman, REALTOR, Broker | http://www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

6/27/2022

National Existing Home Sales Snapshot by National and California Association of Realtors May 2022

According to market research by National Association of Realtors, on a national level May 2022 brought 5.41 million in sales, a median sales price of $407,600, and 2.6 months of inventory. The median sales price is up 14.8% year-over-year, and inventory was up 0.1 months from May 2021.

Existing Home Sales May 2022

California Association Realtors snapshot of the Long Beach housing market graphic shows a 14% decrease in existing home sales at a $940,000 median price for single family homes, with only a median 8 days on market overall.