And just like that, we’ve reached July 4^th so let’s say “Hello 2^nd half of 2023”. There is so much world and market news that it can’t be contained here. The critical share now concerns our continued tight housing supply here in Los Angeles and also how Buyers can handle the higher interest rates.

The Southern California housing supply shortage has primarily been caused by higher mortgage rates affecting potential home sellers. Creating a “lock-in effect” on home sellers who seek to buy up or downsize, they are now deciding to sit tight until rates drop. There are 40% less residential transactions year-to-date compared to last year in most SoCal markets. The newly imposed Luxury Tax affecting LA home sales only adds to the seller lock-in and wait period. Will it get better?

There is good news in an unexpected corner—homebuilders/developers. They see opportunity amid the shortage crisis and new housing starts surged 20% since April, a clear sign of builder/developer confidence after 2 years of woe for them.

New construction sales soared 12% . . . 20% higher than last year compared to existing home resales - which is where the lock-in remains. Ernie’s forecast: Supply & Prices will remain relatively flat in the short term.

What Buyers Should Do While Waiting for Lower Interest Rates

1)  Tour more homes to refine your search determining absolute needs compared to wants, in other words – keep looking!

2)  Talk to experts- realtors, bankers, CPAs, home improvement pros like designers or contractors

3)  Improve your credit score by paying down Debt

4)  Build your Down Payment by saving more $$ (this will help your negotiation process with sellers and lower your interest rate)

5)  Improve your current home - necessary repairs/corrections, gentle “facelift”

The Team & I are having a blast with the recent release of Season 2, Kendra Sells Hollywood on HBO’s MAX. We’ve received favorable reviews and maintain our stance as ethical professionals who emphasize client service and honest intentions.

I was also proud to host NBC’s Open House featuring our Pasadena estate property with America’s only listed residential private Museum. Hope you’ll take a look!

-Ernie