Southern california market update
the market has changed drastically, this is what we are seeing and what we can expect..
We’re seeing a real shift in the Long Beach condo and loft market, driven largely by rising inventory. The number of available condos has increased by over 30% compared to this time last year, which is giving buyers more choices and softening urgency. Adding to that is the fact that interest rates remain elevated in the high 6% range, which continues to impact affordability and monthly payment calculations for buyers. Layer in broader economic uncertainty—everything from inflation concerns to job market headlines—and it’s no surprise that many buyers are feeling hesitant about moving forward. This caution is creating a drag on demand just as inventory continues to climb, putting even more downward pressure on activity. With more options available and fewer buyers jumping in, homes that aren’t priced right or well-prepared are sitting longer and getting overlooked entirely.
the headlines behind the shift
click through on photos below to read the articles
Current active loft listings
Currently there are five active loft listings. Here are the links to the listings, I’ll go over them in detail below:
Okay, so the first one out of this list is your listing. We are listed at $784,000. It's 1,745 square feet, making it the largest of all the comparables.
The next two listings are in the Insurance Exchange building. One started at $799,000, dropped to $749,000, and is now listed at $699,000. The other is a sister unit—same floor, same layout (1 bed, 2 bath)—and is also priced at $699,000. Both have been on the market for some time and are clearly responding to market pressures.
There’s also a new 1 bed, 1 bath listing I just put on the market in the Krest Building. It’s 916 square feet and has been listed for 14 days. Another unit in the same building, unit 3G, is just over 1,000 square feet and has been on the market for 104 days. It started at $699,000 as well.
Your listing: $784,000 | 1,745 sq ft | 204 DOM
Insurance Exchange #1: Started at $799K → now $699K
Insurance Exchange #2 (sister unit): $699K
Kress Building (new 1/1): 916 sq ft | 14 DOM
Kress Building Unit 3G: Just over 1,000 sq ft | 104 DOM
Average DOM across these listings: 206
We're clearly not alone in seeing extended days on market. While rates have come down slightly this week, buyer demand remains low. Inventory is high, giving buyers plenty of options and little urgency.
At this point, we need to decide how much longer it makes sense to keep the unit vacant. Do you want to reduce the price and aim for a sale based on the current climate? Hold the price and hope for improved interest or falling rates? Or take it off the market and pivot to a rental strategy?