BHAUS EIGHT December 2022 Newsletter

Hello community,

HAPPY HOLIDAYS! As you gear up to celebrate and spend time with family and friends, we want to take this opportunity to wish you the happiest of holiday seasons!

It has been a great year as we have embarked with many of you on your adventure of house hunting and house selling! We are also in the middle of completing renovations in some of our own homes, and we can’t wait to share with you once completed.

This year we made a commitment to provide you with the most personalized and professional service you can have in real estate. As we ride into 2023, we continue offering you bespoke services to fit your specific needs, while brining you the latest real estate data so you can make the best financial decisions for you and your family.

Thank you again for being part of our BHAUS EIGHT community, and we look forward to an amazing 2023.

BHAUS EIGHT Properties:

SouthBay Real Estate.

Southbay market average home prices had a slight dip in November versus the previous month (-8%) and versus last year (-6%) as expected during the slow season. The inventory continues to stay below the inventory from last year, while DOM (days on market) increased. These stats are to be expected given we are in the slowest time of the year for real estate.

Within the cities we report on, there are a few that had price increases last month, among them Hermosa Beach (+12%), Redondo Beach (5%), Lawndale (+11%), Inglewood (+24%), and Rolling Hills (35%).

We are seeing a lot of fixer properties coming on the market, with lots of opportunity for a home buyer who wants a value-add property, or for investors looking for a good investment in the Southbay area.

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 November of last year.

Economy & Mortgage News.

On the mortgage front, borrowers received good news with decreasing mortgage rates for the last four consecutive weeks. As of December 8th, a conforming 30-year fixed rate averaged 6.33%, dropping from the most recent peak of 7.08% last month.

According to C.A.R. economist, inflation may have already peaked. Even so, the Fed announced a continuing tightening grip on the economy until we see inflation down to 2%. The Fed just raised their interest rate again by 1/2 point, in its campaign of slowing economic growth and spending in order to fight inflation and get to their target goal. This continued tightening will inevitably affect mortgage rates and therefore, the real estate market.

If you are a buyer, one thing to remember is that you should go into home buying as a long game, and not as a short term transaction. This period is presenting a lot of opportunities for savvy buyers that follow the market and stay well informed with the latest RE stats in their area.

Investor Corner.

For our investor community, the good news is that while we see a market shift, C.A.R. sees it more as a small price decrease and not a double-digit price correction that many buyers were waiting and hoping for.

The fact that sellers have built so much equity in their homes and have invested in good loans, makes it easier for them to wait and hold for their price, albeit not expecting a crazy price hike as maybe a year ago. They also are holding on to their homes, affecting the amount of new inventory available every month.

This dynamic represents opportunities for investors, as they purchase and flip homes, bringing much needed and desired inventory to communities across Southern California. While there are many opportunities, investors should be aware of the areas that have more stable real estate markets and those that are more susceptible to the economy and mortgage rates.

If you would like to receive investor opportunities, please email us directly to get on the list.

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.