Hello Friends!

How are you coping with this October heat? ☀️ Here in Southern California, 90+ degree temperatures feel a little unusual for this time of year—and this late-season heat wave has certainly reminded us how much our environment is changing. El Niño is strengthening, and NOAA is expecting a very strong event this fall and winter.

Then we see the powerful waves along the Peninsula, Orange County and Malibu, along with coastal erosion, rising sea levels and other environmental challenges. Sometimes it makes you stop and wonder: Are these changes telling us something—and are we listening?

For now, I hope all of you stay cool, spend some time in or near the water this weekend, and enjoy our beautiful Southern California coastline. 

This Week’s Economic & Housing Update

Inflation looks lower—but there is an important detail.

The Bureau of Economic Analysis recently updated parts of the methodology used to calculate the Personal Consumption Expenditures (PCE) price index. The revised data show core PCE inflation at 3.0% year over year in August, compared with the previously reported 3.3% for July. Some of the change reflects the methodology update, so it’s important not to interpret the entire decline as prices suddenly slowing.

Inflation is still above the Federal Reserve’s 2% target.

Private job growth remains modest.

According to ADP, private employers added 90,000 jobs in September, up from 36,000 in August. While the improvement is encouraging, job creation remains relatively moderate compared with historical averages.

Mortgage rates jumped again.

This was a difficult week for home shoppers. Freddie Mac reported the average 30-year fixed mortgage rate at 7.28% on October 1, up from 7.03% the previous week. The 15-year rate increased to 6.60%.

That increase can make a meaningful difference in monthly payments and purchasing power. For buyers, affordability is clearly an important consideration right now.

What Does This Mean for Real Estate?

The housing market continues to be very local. Long Beach can behave differently from other parts of Los Angeles County, Orange County or Southern California—and even within Long Beach, each neighborhood and property type can have its own story.

Higher mortgage rates may cause some buyers to pause, but opportunities can still exist for buyers who are prepared and willing to look carefully at individual properties.

For sellers, pricing, preparation and presentation matter more than ever.

As we move through October and toward the end of the year, I’ll continue watching mortgage rates, inventory, employment, inflation and our local Long Beach market.

Thank you for spending a few minutes with me and reading my weekly market update. I truly appreciate your support, trust and referrals.

If you have questions about buying, selling, investing, or simply want to know what your home may be worth, I’m always happy to connect.

Visit AmirZee.com for your Instant Home Value, neighborhood statistics, MLS search and the latest real estate updates.

Stay cool, stay safe, and enjoy this beautiful Southern California weekend! 🌴🌊