August 13, 2025 #1 Local News, Forum, Information and Event Source for Venice Beach, California.

Home Prices In Southern California Have Dropped And May Continue Falling

Higher Mortgage Rates Are A Factor 

Mortgage rates have continued to rise as Southern California heads closer to the Fall season and that has had an effect on home prices in the area as reported by The Los Angeles Times.

Rising mortgage rates are hardly a local phenomenon, but are definitely starting to change the once strong seller’s market into more of a buyer’s market. For a change, buyers have had to start to drop their prices to try and attract an increasingly reluctant pool of buyers into considering a purchase. 

Carl Izbicki, a real estate agent at RE/Max Estate Properties in Los Angeles said, as quoted by The Los Angeles Times, “When my buyers look at homes, they have some time to think about it now. It’s a normal market.”

According to Forbes.com, mortgage rates are two points higher than they were at the beginning of the first quarter of the year and that was after the rates had already increased more than they had at any other time in the last 28 years. 

Inflation is part of the reason that mortgage rates are increasing after the consumer price index also rose to a historically high level. Part of the reason for this is the Federal Reserve’s attempts to combat inflation by raising the benchmark interest rate. 

Joel Kan, an economist at the Mortgage Bankers Association (MBA) said, as quoted by Forbes.com, “Higher interest rates resulting from the Fed’s efforts to combat inflation, as well as the persistently high rate of inflation, are causing stresses for households and businesses.”

Mortgage rates, for the average 30-year, fixed-rate mortgage were as high as 5.81 in June but have gone even higher in late August. The current 30-year, fixed rate mortgage is 5.90% according to Bankrate.com. 

Countries all over the world are having to do the same to combat inflation but in the United States, financial experts predict a slowdown. Wharton business school professor Jeremy Siegel said, as quoted on CNBC’s “Squawk Box Asia, “I think we only need 100 basis points more. The market thinks it’s going to be a little more — 125, 130 basis points more. My feeling is we won’t need that much because of what I see as a slowdown.” indicating that the Federal Reserve will only have to raise the consumer price index by 100 additional basis points. 

Siegel points out that, according to CNBC, housing prices have dropped and in fact have “gone down by a record amount exceeding any six-month period.” These are one of the key indicators of whether inflation will continue to rise or slow and Siegel believes that this shows that a slow down is on the way.

Related Posts

Santa Monica EV Station Opens with 20 Hyper-Fast Chargers, Among Nation’s Most Powerful

August 13, 2025

August 13, 2025

The launch comes as the state continues to lead the nation in EV ownership, accounting for roughly half of all...

Councilwoman Unveils Palisades Rebuild Plan Prioritizing Victim Housing and Fire Safety

August 13, 2025

August 13, 2025

Developed through hundreds of conversations, town halls, and surveys, the plan addresses critical needs Councilwoman Traci Park unveiled a detailed...

Mar Vista Council to Address Fire Hazards Due to Vacant Properties on Venice Blvd

August 12, 2025

August 12, 2025

Open flame incidents and structural risks from expired permits have been reported at the properties The Mar Vista Community Council...

Venice Shorts: Madness Returns To Marr & Washington

August 12, 2025

August 12, 2025

The city’s best efforts to clean up this intersection of RV’s and encampments becomes ongoing, problematic and challenging  By Nick...

(Video) Popular Cyclist Shortcut in Marina del Rey Blocked Off by Cinderblock Wall

August 12, 2025

August 12, 2025

The wall blocks access to the Marvin Braude Bike Trail, forcing riders onto busy Lincoln Blvd — with no bike...

Lake Shrine to Reopen Meditation Gardens, Aims to Fully Reopen Next Year

August 12, 2025

August 12, 2025

The January wildfire, which devastated parts of the Pacific Palisades, left most of the Lake Shrine’s core structures intact. However,...

Santa Monica is Hiring a Housing and Human Services Operations Director. Here’s What the Qualifications Are

August 11, 2025

August 11, 2025

The city is looking for a candidate with substantial experience in affordable housing development, homelessness intervention, and human services. Beyond...

Red Bull Origin Returning to Venice Beach, Honoring Skateboarding’s Roots and Future

August 11, 2025

August 11, 2025

Running from September 5 to 7, the event will feature top skateboarders from around the world competing on recreations of...

Brand New Palisades Estate Designed by Ken Ungar Enters Market at $22.5M

August 11, 2025

August 11, 2025

The listing comes amid continued demand for ultra-luxury housing in Los Angeles’ Westside neighborhoods, where properties exceeding $20 million remain...

Entertainment Firm Extends Long-Term Commitment to Santa Monica Office Hub

August 11, 2025

August 11, 2025

The property underwent extensive renovations in recent months, including a full seismic upgrade, a redesigned main lobby The Swig Company...

Officials Confirms 26 Potential Dog Illness Cases Linked to Venice Canals; Toxin Warning Remains in Effect

August 10, 2025

August 10, 2025

The Venice Canals Association, which first raised alarm over the dog deaths, continues to collect data from residents and share...

10-Unit Venice Apartment Complex Steps from Oceanfront Lists for $4.6M

August 10, 2025

August 10, 2025

The property offers significant investment potential, with up to eight of the 10 units available vacant at close of escrow...

Santa Monica Public Library Announces September Events

August 9, 2025

August 9, 2025

Among the events is Puppets in the Library, classes on how to write engaging scenes, celebrations of Hispanic Heritage Month, and...

County Launches Mental Health Initiative for Veterans

August 9, 2025

August 9, 2025

The program is designed to eliminate barriers to mental health services by offering veterans direct access to free emotional support,...

Los Angeles Youth Orchestra to Hold Auditions for 25-26 Season

August 9, 2025

August 9, 2025

The orchestra’s upcoming season includes Fall and Spring concerts at venues such as Pasadena’s Ambassador Auditorium and Barnum Hall in...