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Stock markets ended the week slightly lower – Stock markets had a relatively quiet week. Second quarter corporate profits have come in strong which was expected. Unfortunately, investors sold off stocks Friday on fears of rising COVID cases. That brought stock markets down at the close of the week. The Dow Jones Industrial Average closed the week at 34,687.85, down 0.5% from 34,870.16 last week. It is up 13.2% year-to-date. The S&P 500 closed the week at 4,327.16, down 0.7% from 4,369.55 last week. It is up 15.5% year-to-date. The NASDAQ closed the week at 14,427.24, down 1.9% from 14,701.92 last week. It is up 12% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 1.31%, down from 1.37% last week. The 30-year treasury bond yield ended the week at 1.93%, down from 1.99% last week. We watch bond yields because mortgage rates often follow treasury bond yields.

Mortgage rates – The July 15, 2021, Freddie Mac Primary Mortgage Survey reported mortgage rates for the most popular loan products as follows: The 30-year fixed mortgage rate was 2.88%, down slightly from 2.90% last week. The 15-year fixed was 2.22%, almost unchanged from 2.20% last week. The 5-year ARM was 2.47%, down from 2.52% last week.

California home prices continue to rise at record pace in June – The California Association of Realtors reported that existing home sales totaled 436,000 on a seasonally adjusted annualized rate in June. That marked a year-over-year increase of 28% in the number of sales last June. The median price paid for an existing home in June was $819,630, up from May’s $818,260 median price. Year-over-year the median price increased 30.9% from last June when the median price was $588,070. June marked a third straight month of year-over-year gains of over 30% in the median price. The California Association of Realtors tracks inventory levels based on how many months it would take to sell the active listings in all MLS systems at the current sales level. There was a 1.7 month supply of homes for sale in June, down from a 2.7 month supply of homes for sale last June. Active listings are beginning to climb, and are at the highest level since last October.

Below are median price and sales data by county.

California home prices continue to rise at record pace in June

The California Association of Realtors reported that existing home sales totaled 436,000 on a seasonally adjusted annualized rate in June. That marked a year-over-year increase of 28% in the number of sales last June.

The median price paid for an existing home in June was $819,630, up from May’s $818,260 median price. Year-over-year the median price increased 30.9% from last June when the median price was $588,070. June marked a third straight month of year-over-year gains of over 30% in the median price.

The California Association of Realtors tracks inventory levels based on how many months it would take to sell the active listings in all MLS systems at the current sales level. There was a 1.7 month supply of homes for sale in June, down from a 2.7 month supply of homes for sale last June. Active listings are beginning to climb, and are at the highest level since last October.

Below are median price and sales data by county.

Stocks slightly higher after turbulent week – Stocks markets exhibited huge swings this week. Thursday markets plunged over one percent as investors feared that thespike in new COVID Delta variant cases would slow the progress of the world returning to normalcy after the pandemic. A decision by Japan not to allow fans at the summer Olympics was also announced Thursday.  Economic data released Thursday suggesting that shortages in supplies and labor could be slowing the international economy. Also on Thursday the U.S. new unemployment claims rose to 373,000  which was higher than expected. On Friday markets rose over one percent after early second quarter corporate earnings began to be released. Companies had record profits in the second quarter of 2021. By days end many companies and experts conceded that those earnings were compared to one year ago when sales were anemic due to the pandemic. Compared to the second quarter of 2019, 2021 figures were still strong but nowhere near the year-over-year gains when compared to profit levels at the worst time of the pandemic.  The Dow Jones Industrial Average closed the week at 34,870.16, up 0.2% from 34,786.35 last week. It is up 13.7% year-to-date. The S&P 500 closed the week at 4,369.55, up 0.4% from 4,353.54 last week. It is up 16.2%  year-to-date. The NASDAQ closed the week at 14,701.92, up 0.4%, from 14,639.33 last week. It is up 14.0% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 1.37%, down from 1.44% last week. The 30-year treasury bond yield ended the week at 1.99%, down from 2.06% last week. We watch bond yields because mortgage rates often follow treasury bond yields.

Mortgage rates – The July 8, 2021, Freddie Mac Primary Mortgage Survey reported mortgage rates for the most popular loan products as follows: The 30-year fixed mortgage rate was 2.90%, down from 2.98% last week. The 15-year fixed was 2.20%, down from 2.26% last week. The 5-year ARM was 2.52%, unchanged from 2.53% last week.

Housing data is released by the California Association of Realtors and the National Association of Realtors around the third week of the month for the previous month. Local market data for June is available on my website now. Search market reports. Those results again show rising sales, listings, and double digit price increases. Check my website to view your city, or zip code. If the state and national numbers are anywhere like our area I’d expect to see another month of record results when June sales are released. That will be the end of next week or the first of the following week. Hopefully we will have some of those numbers released before next weeks report.

U.S. employers added 850,000 jobs in June – The Department of Labor and Statics reported that 850,000 new jobs were added in June. That was a much higher than the 559,000 new jobs added in May, and the most jobs added in 10 months. The unemployment rate was 5.9% in June, up from 5.8% in May, as more workers entered the workforce.

Stock markets up again this week – Stocks markets rose again this week, and the S&P closed the week at another record high. The June jobs report showed that the jobs recovery from pandemic related layoffs is strong. Employer’s added jobs at the fastest pace in 10 months. The Dow Jones Industrial Average closed the week at 34,786.35, up 1.0% from 34,433.84 last week. It is up 13.6% year-to-date. The S&P 500 closed the week at 4,352.54, up 1.7% from 4,280.70 last week. It is up 15.9% year-to-date. The NASDAQ closed the week at 14,639.33, up 1.9%, from 14,360.49 last week. It is up 13.5% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 1.44%, down from 1.54% last week. The 30-year treasury bond yield ended the week at 2.05%, down from 2.16% last week. We watch bond yields because mortgage rates often follow treasury bond yields.

Mortgage rates – The July 1, 2021, Freddie Mac Primary Mortgage Survey reported mortgage rates for the most popular loan products as follows: The 30-year fixed mortgage rate was 2.98%, down from 3.02% last week. The 15-year fixed was 2.26%, down from 2.34% last week. The 5-year ARM was 2.53%, unchanged from 2.53% last week.

Real Trends revealed 2021’s The Thousand list of top-producing agents nationwide.

Featured in the Wall Street Journal, the 17th annual The Thousand list America’s top 1,000 real estate sales professionals. Designees are recognized as the top one-tenth of one percent of more than 1.4 million licensed Realtors® nationwide.

READ THE REAL TRENDS THE THOUSAND LIST, HERE.
About Real Trends The Thousand List

REAL Trends The Thousand honors America’s elite real estate agents and their companies and is compiled and analyzed by REAL Trends with a special ad section published in The Wall Street Journal and is not affiliated with The Wall Street Journal news department.

In this week’s city news, we are providing the top highlights in your area. Read the latest from LA to Long Beach, to SFV, and Conejo Valley.

Los Angeles News

Apple Opens Latest Store in Historic Downtown Tower

The 26th Apple store opened its door this week with none other than CEO Tim Cook there to greet eager patrons. The newest brick-and-mortar addition was unveiled after an extensive restoration of the Broadway Theater. Built in 1927, the theater is among the first in the city. This marks the Apple Tower Theater as one of Apple’s most significant projects to date. Shuttering in 1988, the Broadway Theater remained empty and unused for years. That is until Apple collaborated with leading preservationists, preservation artists, and city officials. The tech giant worked to thoughtfully preserve the theater’s timeless beauty. In a statement, Apple shared the following:

“Apple Tower Theatre debuts as a fully renovated place for gathering, learning, and exploring Apple’s latest product lineup. Apple also launched Today at Apple Creative Studios, a global initiative that provides hands-on experiences and mentorship to young creatives, kicking off with the opening of the new store in Los Angeles.”

Beach Community News

Carnival Cruise Line to Relaunch Departures Out of Long Beach

If you are ready to get back out to sea, you won’t have to travel far. This week Carnival Cruise Line announced the return of cruises from its ports around the country. After 16 months of being anchored, cruises can resume service beginning in July. This will include service out of Long Beach in August for vaccinated passengers. Some of the cruise lines setting sail include The Panorama, one of Carnival’s newest and largest ships. Before any crew member can begin work preparing for guests, they must be vaccinated and complete a quarantine mandated by the CDC, the company added.

“Our focus remains on the health and safety of our guests, crew and the communities we serve and visit,” President Christine Duffy said in the announcement. “We are taking a deliberate approach so we can execute with excellence and deliver a fun experience to our guests, who have been tremendously patient and supportive throughout this pause.”

Along with being vaccinated, travelers will complete an online health questionnaire 72 hours before sailing and undergo an enhanced health screening before boarding.

San Fernando Valley News

A New Hotel Is Coming to Ventura Boulevard

Irvine-based DKN Hotels has unveiled plans for a new AC Hotel on Ventura Boulevard. The proposed hotel, the Sherman Oaks AC Hotel by Marriott, would be located at 15485 Ventura Blvd. Current plans would call for razing the 70-room Sherman Hotel to make way for construction on the six-story 159 room building. Renderings for the project show a contemporary podium-type building that would rise approximately 75 feet high. On the hotel’s upper floor,  there would be a bar with outdoor seating that would overlook Ventura Boulevard. DKN Hotels own dozens of other properties in the Los Angeles area to include another AC hotel planned for Downtown Burbank.

Conejo Valley News

Thousand Oaks to Build City’s First Homeless Facility

The city of Thousand Oaks will be taking its first step in providing designated housing for the homeless community. The city issued a request on Thursday for local developers and property owners to help in finding a site for the proposed housing facility. This comes after the City Council in April designated construction of a combined homeless emergency shelter its second-highest priority. “We have a need for both,” Ingrid Hardy, the city’s assistant city manager, said. “We have a need to provide our homeless population with temporary emergency shelter. And we also have a need for permanent supportive housing, which has very limited options in the Conejo Valley.” With about 128,000 residents in Thousand Oaks, the homeless population was at 152 as of 2020. 

Real estate data company DQNews (formerly CoreLogic/DataQuick) reported that May existing home sales in their six county Southern California region Jumped over 100% from the number of sales last May. That surge is mostly related to a near stoppage in sales last May at the start of the pandemic.

The median price jumped 24.7% in the six county region. That marked the largest year-over-year median price ever recorded.

The county by county numbers were as follows: Los Angeles County recorded a 25% increase in the median price. Orange County recorded a 19.3% increase in the median price. San Bernardino County recorded a 16.8% increase in the median price. Riverside County recorded a 22.5% increase in the median price. Ventura County recorded a 20.9% increase in the median price. San Diego County recorded a 22.9% increase in the median price.

The National Association of Realtors reported that existing home sales jumped 44.6% from the number of homes sold last May. Existing home sales include all single family, condominium, co-op, and townhomes.

The median price paid for a home in May was $350,300, up 23.6% from last May’s median price of $283,500. There are now 111 straight months of year-over-year increases in the median price.

The unsold inventory level is at a 2.5-month supply, down from a 4.6-month supply one year ago. Inventory was up slightly month-over-month from April when there was a 2.4 month supply. The supply of homes is simply the number of sales in the month divided by the number of homes for sale at the end of the month.

First time buyers accounted for 31% of all purchases. Second-home and investor purchases accounted for 17% of all homes sold. Foreclosures and short sales accounted for less than 1% of all homes sold. All cash purchases accounted for 23% of all transactions.