Redondo Beach, CA Real Estate News

By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Chicago PMI, which gauges manufacturing within the Chicago region, reported an increase to 65.2 in January.  Anything above 50 is considered expansion.  Stocks are trying to improve today, as January was a hard month for them.  The main factor for Investors is the uncertainty of the vague Fed policy changes moving forward in 2022.  There are forecasts of possible rate hikes for each of the next Fed meetings, but there's also the possiblity of an increase in the increment of the rate hike.  Typically, the increments are based on 0.25%, which possibly could move to 0.5%.  Just recently Atlanta Fed Bostic stated that he is in favor of 0.5% rate hike over 3 meetings; and a few others (like SF's Daly and KC's  George were more vague on specific moves t...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  We have several important data to report from the Economic Calendar today.  We'll start off with the Employment Costs, which rose 1.0% in the 4th Quarter.  This has been an important component for inflation.  Personal Income rose 0.3% in December; while, Consumer Spending dropped 0.6%, which is being attributed to the omicron variant.  The Personal Consumption Expenditure (PC) rose 0.4% in December with it's YoY rising from 5.7% in November to 5.8%.  The Core PCE (which excludes food and energy) rose 0.5% in December; while, it's YoY rose from 4.7% in November to 4.9% in December.  The Core PCE is the Fed's favorite gauge for for inflation; and it's also called "real" inflation.  Lastly, the Consumer Sentiment dipped from 68.8 in December to 67.2 in J...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  We have several important economic data being reported today, which we'll start with the initial Q4 GDP, which came in pretty hot, at 6.9%.  However, Durable Goods dropped 0.9% in December; but, if you exclude Transportation (which have large numbers and can skew the overall data), then it rose by 0.4%.  The weekly Initial Jobless Claims dropped by 30k from last week's numbers to 260k; however, we did see Continuing Claims rise from last week too.  Pending Home Sales dropped 3.8%, which was larger than forecasts, and that led to a 117.7 seasonally adjusted annualized units for the month  of December.  After the Fed's announcement yesterday, then both Stock and MBS Markets had a big selloff.  MBS dropped 63bps.  It was more of what Chair Powell didn't ...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Even though we're awaiting the Fed's Announcement at 11:15am PST, we still have New Home Sales data for the month of December, which rose by 11.9% to 811k seasonally adjusted annualized units.  Markets are awaiting the Fed's Announcement and positioning themselves ready for anything.  Stocks dropped a bit last week, which saw NASDAQ enter Correction Territory.  The disappointing Q4 Earnings Reports, the escalating tensions with Ukraine/Russia, high inflation are all factors too, but Investors appear to be more focused on policy stance moving forward.  The taper should end around March, which it's being widely expected to see our first rate hike thereafter; then further reduction of the Balance sheet 3-6 months later.  There are some investors hoping l...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Today, we have 2 HPI (Home Price Index) reports.  The first is Case Shiller HPI, which gauges the 20 largest US Markets.  It rose 1.2% MoM in November and dipped 0.2% to 18.3% YoY.  However, FHFA HPI rose 1.1% MoM in November and it's YoY rose 0.1% to 17.5%.  FHFA follows conforming loans.  Lastly, Consumer Confidence dipped from 115.2 in December to 113.8 in January.  The 5 year and 7 year Treasury Auction went well (video was just completed shortly after Auction results).  However, while creating the video, we hadn't seen much reaction.  The FOMC started their 1st day for their 2 day meeting, which we'll receive their announcement tomorrow.  All eyes and ears will be waiting for the announcement, as most investors are on edge; and Markets are highly...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Markit PMI released both their Manufacturing and Services data for the month of January.  Anything above 50 is considered expansion.  Manufaturing dropped from 57.7 in December to 55.0 in January; and Services dropped from 57.6 in December to 50.9 in January.  We'll need to keep our eyes on this this (especially Services), as both industries dropped and may be trending in this direction.  Tomorrow will begin the FOMC, which will be the highlight in focus this week.  Also, later this will be the Fed's favorite gauge for inflation (PCE) will be released.  The Markets are preparing for the Fed's Announcement this coming Wednesday.  Stocks are dropping today, as they prepare, but also, taking some of it's queue from disappointing Q4 Corporate Earnings...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Leading Economic Indicator Index rose 0.8% in December, after it's November's number was revised from 1.1% lower to 0.7%.  Next week will provide plenty of data, such as Housing data, GDP and Consumer Inflation (with the Fed's favorite gauge for inflation -PCE).  Also, Investors will be waiting on the FOMC to finish on Wednesday and listen for any new information on the Fed's tightening policy, including it's reduction of it's Balance sheet.  Meanwhile, Q4 Corporate Earnings are being released and it seems like they're underperforming, as stocks not only are declining for today, but the week.  A few indices are approaching correction territory.  MBS is currently Up between 16-19bps, which will be enough for Lenders to come out with better pricing ...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Philly Fed Index rose from 15.4 in December to 23.2 in January. This index gauges the business/manufacturing in the Philadelphia region.  This is good news based on the contraction in the NY region that was released earlier this week.  Jobless Claims spiked to 286k last week, which should not be a surprise, as this is rather common at this time of year.  This is due to the seasonal workers (from the Holidays) being let go from their jobs.  Lastly, the Existing Home Sales dropped 4.6% in December, as it went from 6.48 seasonally adjusted annualized units in November to 6.18 million in December.  Stocks are Up today as Yields seem to be showing some improvement and more companies release their Q4 Earnings Reports.  We'll touch on Yields shortly!  Me...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The MBA Mortgage Loan Activity Report released their data (which comes out every Wednesday) and indicated that Home Buyers jumped this past week, as Mortgage Rates continue to rise.  Seems like rising Mortgage Rates are incentivizing Home Buyers to get off the fence; however, they're disincentivizing refinances, as we saw a drop week-over-week.  Housing Starts rose from 1.678 million seasonally adjusted annualized units in November to 1.702 million in December.  A 1.4% rise month-over-month.  Also, Building Permits (future Housing Start) rose 9.1%, which went from 1.717 million seasonally adjusted annualized units in November to 1.873 million in December.  It will be interesting to see it's January's numbers, as we found out yesterday that there was a...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Empire State Index, which measures manufacturing around the NY region, posted a -0.7 for January, which is the first time in awhile that we've seen any contraction in manufacturing in the NY region since the beginning of the lockdowns during the Pandemic (March of 2020).  Meanwhile, higher interest rates are concerning Home Builders' Confidence, as the NAHB Home Builder Index dropped from 84 in December to 83 in January.  Meanwhile, both Stocks and Bonds are selling off!  NASDAQ is being highly affected by the rise in Yields due to it's growth stocks losing it's higher profits due to higher Yields.  An M&A was announced, which Microsoft is looking to buy Activision Blizzard to create 3rd largest Gaming company.  And Q4 Corporate Earnings reports a...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Retail Sales for December stunk!  it dropped by 1.9%; and when you exclude Auto, then it dropped further, Down 2.3%.  Also, Capacity Utilization dropped from 76.8% in November to 76.5% in December, along with Industrial Production dropping 0.1% in December.  Even Consumer Sentiment dropped in January, from 70.6 in December to 68.8 for January.  However, Business Inventories rose 1.3% in November.  Both Stocks and Bonds are losing in this Market today!  The bad data is usually good for Bonds; however, today, the sentiment is Uncertain, which is why we have been seeing wide swings in the Market.  Take yesterday for an example, which we kept swinging back-and-forth between positive and negative, until it closed Up 8bps.  Today, it was down about 17bps (s...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Jobless Claims rose to 230k last week, as we will most likely see a spike this month due to the holiday seasonal workers being let go.  Meanwhile, we also received inflation data on the Wholesale sector, which doesn't always get a lot of respect, as their costs don't always get pushed over to the Consumer.  The Producer Price Index (PPI) rose 0.2% in December, after it's November number was revised higher (from 0.8% to 1.0%).  The Core PPI (excludes food and energy) rose 0.5% in December; and it's November number was revised from 0.7% to 0.9%.  It's YoY rose from 7.9% to 8.3%.  As we saw yesterday with the CPI report, these numbers are the highest on record since 1982.  The Fed has talked about their concern with inflation and will fight it aggressive...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Today is a big day for the economic calendar, which is providing us with consumer inflation data by CPI for the month of December.  The CPI reported that it rose 0.5% and it's YoY rose from 6.8% in November to 7.0% in December.  This is the highest reading since 1982.  When you strip out food and energy, then you have the Core CPI.  This index is more useful, as it removes 2 uncontrolled variables.  It jumped up 0.6% in December, while it's YoY rose from 4.9% to 5.5%.  This report will have the greatest impact with the Markets this week.  So far, the Markets are reacting fairly good, as it seems that it came in within forecasts and the Market has already priced it in.  We have a 10yr Treasury Auction coming up shortly, which can play a role with the M...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Investors were watching the renomination of Jerome Powell to Fed Chair today.  The Fed Chair indicated that the Fed has not yet discussed how they will reduce the Balance sheet; and indicated that they may not discuss for another 3-4 meetings.  But there are a few Fed Members out there whom have indicated they'd like to see the Balance sheet aggressively reduced; which means the Fed may even sell their holdings (along with not reinvesting its holdings that have matured).  This could be bad for bonds, as it would greatly reduce the demand in the Market and further pushing up rates.  Both Stock and MBS Markets were in the Red prior to the Renomination, but have since improved to Positive Territory.  MBS are now Up 8bps.  Mortgage Rates are currently abo...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  We only have Wholesale Inventories, which doesn't carry much weight with the Markets released today from the Economic Calendar.  It was reported that Wholesale Inventories rose 1.4% in November.  However, this week will provide us with some inflation data (CPI and PPI) and Retail Sales, which will move Markets with their release.  Currently, there is talk that the Fed will raise rates 4 times this year, which is higher than the Fed's Dot Plot and the sentiment that the Fed will be more aggressive with their Balance sheet reduction.  This has set off the big push last week with MBS, which we saw Mortgage Rates rise.  It has continued today, as the Market was Down quite a bit, as they initially competed with Corporate Bonds; and when the European Market...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Non-Farm Payrolls reported only 199k new jobs for December, far off the 400k forecasts; and much differently than the 807k that the ADP reported on Wednesday.  Even with the November revision from 210k on the initial report to 249k, it's still not enough.  However, the Unemployment Rate did drop from 4.2% in November to 3.9% for December.  The Average Hourly Earnings rose by 0.6% in December while Average Hourly Workweek remained Unchanged (from a downward revision in November) at 34.7 hours per week.  This would normally be good news for MBS, but we're still experiencing the Investors reaction to the Fed's Minutes that were released on Wednesday, which brought up the topic of the Fed reducing their Balancesheet thru allowing the maturation of the...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Initial Jobless Claims rose to 207k people applying for first time benefits last week.  The Challenger Layoff (announced layoffs) jumped up from 14.875 million in November to 19.052 in December.  Lastly, the Continued Claims rose from 1.718 million in last week's report to 1.754 million in this week's report.  Tomorrow will be Jobs data from the Bureau of Labor Statistics (BLS), which can have a big impact with the Markets tomorrow.  There are a few more data to report, which includes Factory Orders increasing to 1.6% MoM in November; and the ISM Non-Manufacturing PMI dropping from 69.1 in November to 62.0 in December.  MBS is still falling today, as it's been all week!!!  It had appeared that we were at our caps and seemed to show some weakness; ...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The ADP released their data for Private Payrolls for the month of December today, which came in very HOT!!!!  It is being reported that 807k Private Payrolls were created in December, which is about twice as much as forecasted.  This is the first of the jobs data this week.  This hot number pushed MBS further down on the graph; and received more of a push when the Fed Minutes released.  The sentiment for hawkish comments in the Minutes proved correct, as Investors will be watching the Fed fight off inflation and raise rates this year!  MBS initially came down on the ADP news about 16-20bps; and then dropped another 20 bps after the Fed Minutes were released.  So, now they're Down about 41bps.  Mortgage Rates worsened today!  Yields are pushing up agai...
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By Keith Kyle, Top Producing Agent
(Vista Sotheby's International)
Welcome to the year that was for condo sales in  The Village in South Redondo Beach.  Take a look at all of the homes that sold in the buildings and complexes of The Village and Seascapes One, Two and Three this past year.  2021 was a great year with 22 on market (MLS) condo and townhome sales.  The average "list" price was $872,000 with the average sale price at $905,000 for the year meaning homes generally sold well above the list price.  The condos that sold averaged a very brief 14 days on the market before going into escrow. View the current homes for sale in The Village2021 Home Sales and Home Prices in The Village and Seascape   Address Price $ Per Foot Bed/Bath Sq Feet Year Built Sale Date 120 The Village #308 $850,000 $ 742 1/1,0,1,0 1145/A 1980/ASR 1/29/2021 660 The Village #1...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Manufacturing slowed a bit in December, as the ISM Manufacturing PMI dipped from 61.1% in November to 58.7% in December.  Anything above 50 is considered expansion or growth.  This week, we'll get Jobs data.  Check out the video to see what the Labor Dept reported today regarding the Quits rate.  Meanwhile, MBS is currently Down 6bps; however, it was down around 14bps when Lenders rolled out their ratesheets, so Mortgage Rates will tend to be a little higher today.  The good news is we've seemed to be hitting a benchmark for a possible recovery.  We could possibly see the Markets improve and get us back closer to the 25- and 50 DMA; which would be slightly better pricing for Mortgage Rates.  Also, Yields spiked to just under 1.66%.  The last time we r...
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