Happy Thanksgiving to you and your loved ones!

Southbay market average home prices had a slight jump in October versus the previous month (+5%) and versus last year (+3.6%). While there was good news on home values, the # of sold listings went down by 8%, and the DOM went up by 8% versus last month. Although these last 2 indicators point towards a slowdown in the market, the fact that inventory remained below last year’s level (-16%) has helped with the continued increase of home values, albeit with a narrower margin compared to previous periods.

Just Sold

2412 Clark Lane #1, Redondo Beach, CA, 90278

Sold at $1,068,000

BHAUS EIGHT October Newsletter has arrived in your inbox! Click below to read about the current RE trends, mortgage rates update, and an exciting piece of legislation recently introduced to increase your cap gains exclusion when selling your primary residence.

Summer family travels are always special, and we try to plan different experiences from the previous summer adventure. This year, our travels took us south to Tulum. Located in the Caribbean coast of the state of Quintana Roo, at the tip of the Yucatan Peninsula. Well known for its white sandy beaches, Mayan ruins, and incredible cenotes with turquoise waters, Tulum is home to roughly 47,000 people. The area has seen an exponential growth in the last few years, with a lot of new residential development, hotels, vacation rentals, restaurants, and shopping all near the downtown area.

Generally speaking, the real estate market has slowed down, but as we all know, different markets slow down at a different pace. Such is the story of our Southbay market. While we saw the overall average prices drop in August by 2% (-$30K) vs last year and 7% vs last month (-$100K), the majority of cities we report on experienced an increase in home prices (exceptions last month were Hermosa Beach and Rolling Hills Estates - these may be due to outliers).

It has been a busy summer selling season. While there are some properties that are staying on the market a little longer, there are still those homes that buyers are falling in love with. Within BHAUS properties, our new listing in Hawthorne was a hot property. Immaculate and beautifully staged, the home received multiple offers after the first showings/Open House. We are excited as the Seller is now in Escrow after 7 DOM. Not only did the property show really well, but it was also properly priced.

Overall the Southbay market continued with strong June selling versus last year; median prices were up 7%, but dipped by 8% versus last month. We had an increase in sold homes vs May, an increase of 24% in new listings coming into the market, and a drop in DOM of 13%.

Located in Central America, El Salvador is the smallest country in continental America, and it’s affectionately called “El Pulgarcito de America” (Little thumb of America) by its residents. It borders Guatemala, Honduras, with coastline on the Pacific Ocean (the only country in Central America with no direct access to the Caribbean). It covers slightly over 8K square miles, with a population of 6.8MM people. While it is a tiny country, it is overflowing with personality, a vibrant surfing/beach community, world-class coffee, beautiful landscapes, and a delectable local food scene.

BHAUS EIGHT June Newsletter has arrived in your inbox! Click on link below to read more about the changing RE market and how to navigate it.

While interest rates are at decades-highs (conforming 30-yr fixed surpassing 5%), home prices are still hitting record closing prices as the inventory remains low although slowly increasing. The market is shifting, but sellers have built so much equity in the last few years, that even with a slowdown, sellers will be cashing in.

“Only someone who really takes the time to understand Pinot’s potential can then coax it into its fullest expression” (Miles on Wine) - Remember the movie Sideways? Miles and Jack’s week-long bachelor party in Santa Ynez Valley? They took us around the Santa Ynez and Los Olivos area, with stops in Buellton’s Hitching Post II, Fess Parker’s tasting room, a lot of talk about Pinot Noir, all while in the midst of lots of drama. A simple story line to follow with deep complexities to think about.

Forces are coming together for an interesting show in the real estate industry. Inflation has increased to new highs of roughly 8.5%, interest rates have climbed by about 2% versus a year ago, GDP fell for the first time since the second half of 2020, all while consumer spending levels remain high (these levels may wane now that Fed Reserve prepares to shrink its $9tn balance sheet). We are expecting that all these forces at play will eventually catch up with the residential real estate market and buyers will again enjoy the next cycle of a buyers’ market.

Overall March 2022 saw average home prices increase versus last year, days on market decrease, and again we continue to see an increase of new listings versus the previous month, a trend that we believe is here to stay throughout the Spring/Summer selling seasons.

Ojai, located just about 15 miles inland from the Pacific Ocean, and with the Topatopa Mountains as a backdrop, the drive there alone on Hwy 33 takes you to a different place before you even arrive in this idyllic town of roughly 8,000 residents. It’s serene, quiet, and welcoming, offering a myriad of locally-owned shops, farm-to-table restaurants, art galleries, and meandering trails that give you front row to the mountain range and the Ojai landscape. The town offers a wide range of hotels, from high end resorts such as the Ojai Valley Inn & Spa, with its charming restaurants including the Farmhouse that has an impressive repertoire of visiting chefs, to quaint B&Bs hidden behind courtyards and walking distance to Downtown Ojai.

Federal Reserve increases Rates by .25% (25bps)…

What does this mean for the homeowner or potential first-time home buyers?

Well, California’s home prices have seen one of biggest growth in home equity (by dollar value), thus giving the state the lowest rate of “negative equity” (sellers under water) across the nation, keeping the California housing market robust and competitive. According to C.A.R., demand remains unexpectedly strong with homes selling above listing price in short periods of time.

BHAUS eight March Newsletter is here! Check your inbox or click on link below to get the latest on our local real estate market, mortgage and economy news, and a special "chat" regarding SHORT SALES for our investor community!

Relocating to AZ? Looking for a vacation home? Prescott is a vibrant community bustling with art & music festivals, great cuisine, and an awesome outdoor lifestyle. This Prescott home is modern living at its best in the Prescott pines, just minutes away from the Courthouse Square & downtown Prescott.

Our team is growing!