As July opens, we prepare for the next 6 months of market activity which is promising to be different than the 1st 6 months we’ve just completed. I’m upbeat on the real estate market conditions around Los Angeles. Maybe it’s my experience having weathered more troubled market storms like in 2008, or the 1990 recession. Or maybe it’s because we still are blessed with remaining property demand here in LA. And—we are beginning to see rising inventory, which if it remains controlled will keep a balance on price shifting. An oversupply of inventory will cause prices to drop, but if a slow increase continues, we will benefit from continued sales activity.   Inflation is at a 40 year high. Even so, our market is still characterized as a “Seller’s Market”... though statistics show that margin of advantage is shrinking. 16.2% of listed homes reduced their price as of early June. Compare that to June of last year when only 7.5% of listed homes reduced their price in order to sell. That’s slightly more than double the amount of price reductions in 1 year. This is early indication of the softening trend – especially in luxury price ranges above $6MM.   The good news is that most professional forecasters predict LA home prices to stabilize and become “flat” – not rising but not falling noticeably. Compare that against the 50% drop down in home values between 2007-2009. We all lived through that challenge, but prefer what seems in front of us!   The cultural arts scene is buzzing in LA. Last night I attended Moulin Rouge at the Pantages Theater to a packed house of avid theater fans. People were joyous to be back in stride with high caliber entertainment en masse. Hollywood Bowl presents a full season this summer to much anticipation. Stores & restaurants are filling up. The lifestyle we all forgot for almost 2 years is returning. Get out there and enjoy it -- our amazing California.   Happy 4th of July everyone! -Ernie