OC home prices expected to fall by 11% as recession looms
“Storm clouds are brewing for Orange County real estate, with home prices expected to tumble this year by more than 10 percent in the wake of a national recession.
The OC economy will sputter along with the nation as local home prices fall by 11 percent in the next six months, the Orange County Register reported, citing Chapman University economists.
The Orange-based college’s semi-annual economic outlook calls for a mild national recession in the second half of the year. The culprit: the Federal Reserve’s rising interest rates.
“We’re even more confident that there will be a recession,” said Chapman Professor Jim Doti, who predicted a late 2023 downturn in the school’s December forecast.
Chapman’s somber outlook sees pricier real estate financing driven by higher rates hammering an overheated national economy that resulted in the worst inflation in four decades.”
Pasadena’s rent control board to issue first rate cap
“Pasadena’s new rent control board is set to take its first significant action.
At its June 29 meeting, the Pasadena Rental Housing Board is expected to set a rent increase limit for the first time — a 2.75 percent cap for increases during the 12-month period running from Oct.1 through September 2024. Pasadena Star News first reported the story.
The Rental Housing Board was established in December 2022, just after the city’s voters approved Measure H, the Pasadena Charter Amendment Initiative Petition Measure Imposing Rent Control.
Measure H ranks as Pasadena’s first rent control initiative. During the 2022 election, Measure H made waves because its rules were likely to apply to 25,000 Pasadena apartments.
Measure H calculates the rent cap, known as the Annual General Adjustment, by taking 75 percent of the increase in the Los Angeles area Consumer Price Index for the 12-month period ending March of the year that the cap is set. “
Existing home sales drop 20% from last year
”As mortgage rates remain above early pandemic levels and housing inventory wanes, existing home sales are seeing a large drop.
Existing home sales fell 20.4 percent year-over-year in May, according to a report from the National Association of Realtors. The factors roiling the market also took a bite out of prices for existing homes, which notched its biggest annual decline in 11 years.
Despite the significant annual drop, sales from the previous month marked a small increase. On a seasonally adjusted basis, existing home sales rose by 0.2 percent from April to May.
Inventory is one of the biggest factors plaguing existing home sales. Total housing inventory was down 6.1 percent year-over-year last month. Unsold housing inventory ended May with a three-month supply available.”
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