BHAUS EIGHT July 2022 Newsletter

Hello community,

Hope you are taking care of yourself this summer! We have been on a little R&R ourselves in Mammoth Lakes, in between July selling. (As many of you know, we love the mountains, and we spend some time in Mammoth every summer and winter.. be on the lookout for our lifestyle blog on Mammoth coming soon!). Regardless of where your summer relaxation takes you, we hope you get the peace and rest your body, mind, and soul desire.

Our favorite pastimes include hiking, SUPing on the lake, cycling, reading, and enjoying great food and friends. While our summer reading consists of classics (and it does take more than just the summer to read), we do have some podcast ideas for you to explore outside of your books! If you are a fan of design and all it encompasses, we highly recommend a podcast we just discovered called CXD Convo by Design. Josh Cooperman, the host, takes you on a journey of convos with incredible creatives across the field, including architects, designers, and much more! If you love books, there is an interesting episode with Christy Shannon Smirl of Foxtail Books & Library Services, where she “designs” clients’ libraries. Another of our favorite episodes is one with Luis Murillo of @LMDArchitecture (local to the Southbay). Enjoy!

This month we have great information below regarding the SouthBay real estate market, economy and mortgage news, and what the shifts in the market mean for buyers and sellers.

SouthBay Real Estate.

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%. Overall, we saw June having more inventory in the market, with those homes selling quicker but slightly below May average prices, especially in the cities that are more inland. On the other hand, Manhattan Beach, Torrance, Rolling Hills and Palos Verdes Estates were the cities that maintained an average price increase versus the previous month. All cities across the Southbay did see an increase in prices versus last year.

New listings did get another slight 3% lift vs last month, continuing a trend of a better supply/demand dynamic we have been experiencing in the last couple of months, which will continue giving buyers more options and negotiation power relative to just a few months ago.

Home Stats by City.

Below are the snapshots of average home prices, # Sold listings, DOM, # New listings by city, inclusive of all types of properties (ie: Single Family Residences, condos, townhomes) compared to April of last year.

Economy & Mortgage News.

Mortgage rates continued to fall in June, with last week’s average rate hovering around 5.3%. They fell for the second straight week from last week’s 5.70% and the previous week’s 5.83%. While still almost 3 points above the historically low rates of 2.5%-3%, this is great news for buyers who are looking for a home or those who are in escrow and are ready to lock in their rates.

Other good news for buyers is that the market’s imbalance is returning to a better “normal” due to a few factors: for one, the inventory is increasing, and less buyers are coming into the market due to the rise in interest rates. The two combined are creating a more balanced supply and demand dynamic giving buyers breathing room when making an offer, while sellers are still enjoying the equity gained in the last few years.

Although inflation reached 9.1% at the end of June, there are some good news in the labor market. According to C.A.R., jobs continue to grow with another 372,000 new jobs created in June across different industries including construction (non-residential), healthcare, and hospitality. So while consumers are pulling back on their real spending, jobs are growing. Even though a recession is expected in 2023, analysts predict it will be mild and short-lived.

Investor Corner.

For investors who are involved in the first-time buyer market category, there is great news. California has allocated significant funding in the 2022-2023 State Budget towards the CalHome program, as well as the innovative state-funded down payment assistance program (California Dream for All).

What this means for investors is that first-time home buyers have options in their lending, which can help them reach their dream of ownership sooner. Many of these programs have grants, which means buyers do not need to pay the money back - of course there are thresholds as to the income levels in order to qualify for these programs.

In addition, it is good to note that these programs are not available in all areas of California. In order to find out before making your next investment, you can click on the link below, enter the address, and the results will show you which programs, if any, are available for the particular home:

https://www.workforce-resource.com/dpr/search

BHAUS EIGHT has worked with lenders who offer these type of programs, and we can certainly introduce our clients so they can learn more about the guidelines.

Contact your BHAUS EIGHT team with any comments or questions!

To subscribe to our weekly emails of investor opportunities and our digital newsletter, please email Sonia directly at Sonia@bhauseight.com

From BHAUS to yours.