We open December with World Cup excitement for sports fans, much-needed rain for LA County, and some of the highest online holiday purchase numbers ever seen - proof that money is being spent within this current economy.

The real estate sector is receiving constant press right now due to the shifting market stance - still plagued by low inventory, but also diminishing numbers of Buyers searching. Did you know that the number of Californians who own their home is 3^rd lowest in the nation? Approximately 55% own their home, the remainder rent. Only Washington DC and New York have lower ownership.

Perhaps playing a part in this ranking is the fact that to own a median-priced home in Los Angeles now requires $220,000 of annual income. The dilemma is created because median household income in LA was just above $65,000 in 2020. But we can find a silver lining by comparison because our neighbors above in San Francisco must annually earn $402,000 – wow! And our Anaheim neighbors need $254,000 annually.

We redirect our attention to the opportunities that still exist for Buyers and Sellers in our current marketplace. Demand remains high and although Buyers have increasing leverage at the negotiating table in almost all price ranges, it is still a “Seller’s Market” by definition. If inventory rises significantly in 2023, then that definition may shift. With recently lowered interest rates, Buyers have returned to searching for their perch. Mortgage opportunities have never been more creative and we recommend you contact us to be in touch with a mortgage specialist if you do not already have a strong relationship in that quarter. It can make all the difference in your negotiable strength when the right house appears.

It’s a time to think of others and their needs. What can we do to bring more happiness and light into the lives of all we know? In the spirit of the holiday season I submit to you that it begins within ourselves. Whatever we have to give to others, whether our time, our care, our attention or our money - we should. There is much need around us, and if you are reading this you are within the fortunate realm with the capacity to help those in need. I’ll meet you there, with a smile and a nod and my best wishes for the truest holiday season you can enjoy.

-Ernie