06/14/2026
Economic & Housing Market Update
Week Ending June 13, 2026
As we move through June, the economy continues to be shaped by a combination of global events, inflation concerns, interest rates, and consumer confidence. While many buyers and sellers are waiting for clarity, understanding how these factors affect our local housing market can help homeowners make informed decisions.
World Events Continue to Influence the U.S. Economy
The ongoing tensions in the Middle East have created uncertainty in global energy markets, leading to higher oil and gasoline prices. Rising energy costs impact transportation, manufacturing, and consumer spending, which in turn affect inflation throughout the economy. As a result, the Federal Reserve remains cautious about lowering interest rates. Recent inflation data showed consumer prices increasing 4.2% year-over-year, largely driven by energy costs.
Inflation Remains Elevated
Inflation remains above the Federal Reserve's target of 2%, with housing, energy, and food costs continuing to rise. Shelter costs alone increased 3.4% over the past year. While core inflation remains relatively stable, higher energy prices have pushed overall inflation higher.
For consumers, higher inflation means reduced purchasing power and increased monthly expenses. For real estate, inflation often creates a balancing act between rising property values and affordability challenges.
Mortgage Rates Hold Near Recent Highs
Mortgage rates have remained relatively stable but elevated, with the average 30-year fixed mortgage hovering around 6.5% to 6.6%. Economists now expect rates to remain above 6% for the foreseeable future due to persistent inflation and a strong labor market.
While many buyers continue to hope for significantly lower rates, most experts believe dramatic reductions are unlikely in the near term. This has caused some buyers to remain on the sidelines while others take advantage of negotiating opportunities that were unavailable during the highly competitive market of recent years.
The Job Market Remains Strong
The U.S. labor market continues to demonstrate resilience. Employers added approximately 172,000 jobs in May, and unemployment remains relatively low at 4.3%. A strong job market helps support housing demand because buyers feel more confident making long-term financial commitments.
Strong employment throughout Southern California continues to support housing demand despite affordability challenges.
Stock Market Volatility
Financial markets experienced increased volatility this week as investors weighed inflation concerns, interest rate expectations, and geopolitical tensions. While stock market fluctuations can temporarily affect consumer confidence, many high-net-worth buyers in luxury markets such as Westlake Village and Lake Sherwood often view real estate as a long-term wealth preservation strategy during uncertain times.
What This Means for Housing Prices in Westlake Village, Thousand Oaks & Los Angeles
Our local housing market continues to benefit from one critical factor: limited inventory.
Although higher mortgage rates have reduced the number of active buyers, there are still not enough homes available to satisfy demand in many desirable communities. This is especially true in luxury neighborhoods throughout Westlake Village, Lake Sherwood, North Ranch, Thousand Oaks, Agoura Hills, and many areas of Los Angeles.
Current market conditions suggest:
• Home prices are stabilizing rather than rapidly appreciating.
• Well-priced homes continue to attract strong interest.
• Overpriced properties are sitting longer and experiencing price reductions.
• Luxury properties remain resilient due to limited supply and affluent buyers with substantial cash reserves.
• Sellers who price strategically are still achieving excellent results.
• Buyers currently have more negotiating power than they did during the peak market frenzy.
For homeowners considering selling, today's market rewards realistic pricing, professional marketing, and expert negotiation more than ever before.
Looking Ahead
The biggest factors to watch during the coming months will be:
Inflation trends
Federal Reserve policy decisions
Mortgage rate movement
Global energy prices
Consumer confidence
If inflation begins to moderate, mortgage rates could gradually improve, bringing more buyers back into the market. However, if geopolitical tensions continue to drive energy prices higher, rates may remain elevated longer than many anticipated.
Thinking About Buying or Selling?
Whether you're considering selling a luxury estate, purchasing your first home, or simply curious about your property's current value, having local expertise matters.
Call Tina Lucarelli, your local real estate expert serving Westlake Village, Thousand Oaks, Lake Sherwood, Agoura Hills, Calabasas, and Greater Los Angeles.
Tina provides personalized market guidance, strategic pricing advice, and world-class marketing to help you achieve your real estate goals in any market condition.
Contact Tina Lucarelli today for a confidential consultation and customized market analysis.
Tina Marie Lucarelli DRE 02012354
The One Luxury Properties
