The Competitive Homebuying Season

The Competitive Homebuying Season



Our local housing market has only gotten hotter as we enter the homebuying season in earnest with every measure of competitiveness on the rise.

April home sales at the state level improved moderately from last month and were up from the same month of last year, while the statewide median price soared to the highest level on record. Housing supply continued to improve, with new active listings surging by double-digits from a year ago for the fourth consecutive month.

As always, please reach out if you have any questions or comments with your local market.

Nvidia sales rose 262% as AI keeps booming. The company whose chips are powering the AI revolution saw an even bigger jump in sales last quarter than analysts had expected: to $26 billion. That’s a good sign for the future of AI and probably for the entire stock market, on which Nvidia has an outsized influence. CEO Jensen Huang declared “the next industrial revolution has begun,” as Nvidia predicted $28 billion in sales this quarter. The company also announced plans to split its stock 10-for-1 next month. (Morning brew)
Are Baby Boomers keeping the US economy growing at a healthy pace via spending? With about $76 TRILLION in combined assets, many in this demographic are slowing down and spending lots. Many are motivated to spend right now without waiting as their time is more limited than younger generations, and many have migrated to lower tax states that allow for more disposable income. All of this fuels spending...lots on travel and their homes...and fueling inflation too?  (Business Insider)

Americans say real estate is the best long-term investment in 2024, followed by stocks and gold, the 12th year in a row that respondents have ranked real estate as the top long-term investment, although fewer think so now compared to just a few years ago. According to the latest poll, roughly 36% of those surveyed said real estate is the best long-term investment, down from 45% who thought so in 2022. Even so, respondents still ranked the asset class ahead of stocks or mutual funds (22%) and gold (18%). (GALLUP)
In the first four months of 2024, the US added almost 250,000 jobs per month, defying economists’ expectations for weaker numbers. And in general, job growth equals apartment demand growth. (Bloomberg)

Trex which makes composite boards with sawdust and old plastic bags a long-living alternative to natural wood decking that needs replacement quite frequently, is building a factory in Little Rock, Ark., to boost its manufacturing capacity and also roll out new lines of premium decking, one of which mimics hardwoods, like redwood and ipe.  The other is cooler on the feet. (WSJ)


The Other Stimulus Waiting In The Wings...
The US and many other parts of the globe experienced the effects of government/taxpayer funded stimulus during COVID...trillions! This started in early 2020 and continued well into 2022 and its effects have been enormous, fueling extraordinary economic growth, debt, and inflation.
The other stimulus that makes all others seem like chump-change is the ginormous transfer of generational wealth that started years ago and is accelerating now...on track to continue for the next two decades or so, and further fueled by massive tax cuts in 2018 for very wealthy estates....its estimated to be more than 10X the Covid stimulus, over $70 trillion.
There is another stimulus waiting in the wings:  Rising property values have given Americans almost $32 trillion of home equity. This mountain of money has become more expensive to tap into because of higher interest rates especially on home equity lines of credit, but it is viewed in C-suites and on Wall Street as dry powder to reignite the remodeling boom once rates decline...and further stimulate economic growth and the overall economy.
Yes, what has happened in the past 5 years has made the rich much, much well as those not-so-rich who own homes. Yes, home ownership often requires sacrifice and long term commitment, but it comes with privileges and advantages for sure.

Flood Insurance Discounts
Newport Beach residents and business owners with properties in flood hazard areas will see further discounted rates on their flood insurance policies beginning October 1st.  The Federal Emergency Management Agency (FEMA) recently upgraded Newport Beach's flood insurance classification under the Community Rating System (CRS) from a Class 7 to a Class 6.  This means that premiums for flood insurance will be discounted by an additional 5%, for a total reduction of 20%.  All policies issued or renewed on or after October 1, will qualify for the additional discounts on flood insurance premiums.  

This applies to all homes and businesses with government-backed mortgages in special flood hazard zones that are required to have flood insurance.  Other homes and businesses outside of the special flood hazard areas, with flood zone designations starting with X, will be eligible for a 10% discount on flood insurance premiums. 

To see which discounts you may qualify for, visit the City's map viewer or enter your address in the "Which Flood Zone is My Property In?" tool on the City's website.

Sevilla Restaurant and Tapas Bar
This Spanish-style tapas bar brings a bit of its hometown heritage to Costa Mesa with an enticing menu of all the paella and brochetas you can eat. Cafe Sevlla “Tapas Bar Live” transports guests into the streets of Spain with soulful Latin and Salsa serenades. Saturdays get spicy at Cafe Sevilla with their Flamenco dinner shows, held over a three-course feast featuring the flavors of Spain.

It’s the happiest of happy hours at this Spanish tapas bar with discounted drinks (hello, $6 sangrias!), tasty fare and Latin music from Wednesday through Sunday. Did we mention tapas are 50% off and tacos start at just $8?! Swing by on Tuesdays for their all-night happy hour—a great way to take advantage of the discounted menu!

Check it out...

Flamenco Dinner Show

Newport Beach Wine & Spirits Festival

Kick off the summer at Balboa Bay Resort's Newport Beach Wine & Spirits Festival Grand Tasting- a celebration of wine, spirits and coastal cuisine on Memorial Day Weekend. Sip and mingle while enjoying music, tasty bites and beautiful southern California sunshine by the bay. Proceeds from the Wine and Spirits Festival benefit the Balboa Bay Club Scholarship Fund, a 501(c)(3) charity providing scholarships to exceptional graduating high school students in the Newport-Mesa Unified School District.  The event is this Saturday, May 25th...ticket sales end soon.
Check it out...

Tiny Houses to Buy On-Line
They may be teeny, but these homes can be your ticket to a life of minimalism...or be the best solution to enhancing your existing lifestyle! Be sure to check local zoning regulations and compliance before purchasing and building and do your research on what’s included (for example, does the build kit come with insulation, a foundation, doors and windows, or flooring?) so you know what add-ons you’ll need and what elements are customizable. Turn your dreams into reality before you know it with one of these tiny houses that can be shipped right to your door in as little as two weeks.

108 Via Undine, Lido Isle

4 Bed | 4.5 Bath | 3508 Sqft | $5,800,000 List

108 Via Undine features a spacious backyard unlike any other on Lido Isle.
Situated on an oversized 53’ lot, this recently remodeled home embraces indoor-outdoor living.


220 Via Koron, Lido Isle

3 Bed | 3 Bath | 2352 SF | $5,295,000 List


Meticulously transformed and spanning approximately 2352 square feet, this newly crafted home offers the perfect blend of modern luxury and island-inspired design.


113 Via Yella, Lido Isle

4 Bed | 3 Bath | 1866 Sqft | Call for Details

Recently remodeled, this Spanish-inspired home highlights timeless architectural details while embracing a modern coastal flair.


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COMPASS · 520 Newport Center Dr., #330 · Newport Beach, California 92660 · USA

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Leslie Thompson's detailed approach and dedication are unsurpassed. Clients depend on her personalized service and recognize that her innate skills consistently deliver exceptional results. Whether you're looking to buy or sell, Leslie looks forward to helping you reach your real estate goals with utmost care.

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