JUNE NEWSLETTER
Dear Friends, Family, and Colleagues,
May sales across the state took a slight dip, but higher than normal rates are to blame. With rates now trickling back down, will this Summer be back to business as usual?
📉 California Sales Decline Again:
Existing, single-family home sales totaled 254,190 in May, down 5.1% from 267,710 in April and down 4% from 264,850 in May 2024.
After recording a new high in April, the California median price pulled back in May but remained above the $900,000 benchmark. The May median price of $900,170 declined 1.1% from April
📉 Los Angeles County Trends:
Sales rose 5.7% month-over-month but were down 8% compared to May 2024.
The median price hit $8535,000 — down 1.7% from April and up 2.9% year-over-year.
đź“Š Mortgage Market Jitters:
30‑Year Fixed Rates have dropped for the past three to four weeks, reversing a spring uptick: Freddie Mac reports a low of 6.77% for June 26—the fourth consecutive weekly decline and lowest since early May
🔄 Outlook:
Sellers: Still hold leverage thanks to tight inventory in certain locations (although this is evolving) —though you’ll want to price and stage strategically in this sensitive environment.
Buyers: The slight dip in rates offers a narrow window to lock in more favorable terms—do compare lenders and consider getting pre-qualified soon.
Overall Market: Expect continued price strength but restrained sales through summer, unless mortgage rates improve further or inventory loosens.
Sincerely,
Dennis Adelpour and The Adelpour Group
The S&P 500 hit a fresh record last week, closing at 6,141.02,—its first high since February and a 23% gain since April. Driving this rally? Cooling inflation, softening oil prices, easing trade tensions, and optimism about Fed rate cuts. Tech giants continue to lead the charge. Meanwhile, real estate tells a different story. Across the country, in May, new single-family home sales dropped 13.7% from April, and 6.3% year-over-year. Inventory climbed to a 10-month supply, and existing home sales dipped another 0.7%, with price growth losing steam.
A big reason? Buyer caution and macro uncertainty. Even with stocks surging, homebuyers remain hesitant. Inflation, unpredictable Fed decisions, and global tensions are making people nervous about locking into a long-term mortgage. Add in high rates, rising construction costs, and more homes on the market—and it’s no surprise real estate feels sluggish. But do not be fooled, parts of Los Angeles are roaring. We recently had a client interested in a home in Westwood, and they had 7 offers!
The Los Angeles high-end market is experiencing a bit of softness, with buyers becoming more selective and price-sensitive. While demand remains strong for well-positioned luxury homes, overpricing or poor presentation can lead to extended days on the market and price reductions.
If you’re considering selling, marketing and negotiations are everything. Right now, serious buyers are still actively looking, but they’re prioritizing properties that are competitively priced and move-in ready. Sellers who act strategically—pricing correctly from the start, staging effectively, and leveraging top-tier marketing—can still achieve strong results despite what's happening in the market.
Thinking about selling? Let’s discuss the best timing and strategy for your home. Call me today for a confidential consultation.
This market is offering a unique opportunity for buyers who are ready to act. With less competition and fewer bidding wars, buyers can often secure properties at more favorable prices than in previous months. However, with the shift in the market, it’s important to approach this process strategically. Be Prepared to Move Quickly! While the market may not be as competitive, desirable properties still move fast.
Don't wait for an overpriced home to undergo a price reduction before making a lower offer—it may be too late. We’re seeing properties sit on the market for weeks with no offers, only to receive multiple bids after a small price reduction. You won’t get a good deal if you don’t ask, and it costs nothing to submit an offer—so don’t be afraid to go for it! Even if prices soften slightly, luxury properties in prime locations tend to appreciate over time. Focus on homes that offer both lifestyle and investment value. If you’re ready to explore the opportunities in today’s market, call me today. Let me help you find your dream home and secure the best possible deal! Even if prices soften slightly, luxury properties in prime locations tend to appreciate over time. Look for homes that offer both lifestyle and investment value. If you’re ready to explore the opportunities available in today’s market, call me today. Let me help you find your dream home and secure the best possible deal!
Check out the recent Redfin article we were featured in:
Build-To-Rent Homes: What You Need to Know About the Future of Single-Family Rentals
Build-to-rent (BTR) homes are ideal for people who want the benefits of community living without the hassle of maintenance, mortgage payments, or HOA dues. In recent years, the movement to create more of these types of homes has been increasing due to higher demand. Because of its rapid growth, many real estate companies and investors are developing BTR properties to capitalize on the craze.
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