The most expensive home sold December 2019 was 4817 Hillard Ave. La Canada. This luxury home was originally listed for $3,795,000, then relisted at $3,295,000. After three months on the market, the home was listed yet again but at $2,995,000. This La Canada then sold over (the most current) asking price for $3,015,000. The sellers purchased this home in 2014 for $2,950,000.
This mid-level luxury price range in La Canada is the weakest tier of the market. Changes in tax deductions have really impacted this market. The new mortgage interest deduction covers a loan up to $750,000. Previously it was $1,000,000 and was enacted to encourage home ownership. Previously homeowners were able to reduce their taxable income by the amount of property taxes paid. This has since been reduced to a total of $10,000.
From the Core Logic blog: But with higher prices comes lesser home affordability, and it affects renters too. Our Single-Family Rent Index found rents up 3% nationally over the past year, about double the rate of inflation. As shelter takes a bigger bite out of families’ pocketbooks in 2020, a solution is to build more homes. We expect more housing starts in 2020 than in 2019, but these new homes will generally add supply in the higher price and rent buckets, not in the less expensive tier. In part, this reflects the rising costs of labor, land and materials, which have risen about twice as fast as inflation over the last three years.
MLS Remarks Read:
Nestled on a flat 3/4 acre of fabulous park-like grounds in a tree-lined neighborhood. The versatile floorplan features lovely rooms with hardwood floors, crown moldings, recessed lighting, three fireplaces & French doors leading out to a fantastic backyard. An entry hall welcomes guests into a formal living, fabulous family room overlooking the magnificent yard. Kitchen, cozy breakfast area & pub room with custom eight person bar & a wine cellar for 2200 bottles. A beautiful home, very well maintained with guest house, huge back yard with a pool and play court.