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La Crescenta real estate values up 15% from last year

Regular readers of my real estate blog  know I am concerned over the rapid rise in real estate values.  Hopefully values have leveled off and we won’t continue to see the rapid rise we experienced over the last twelve months.

Is there trouble on the horizon?  I wish I had a crystal ball… hopefully we will continue to see more real estate listings become available and have a more balanced market – for both buyers and home sellers.

“According to federal financial regulators, about $30 billion in home equity lines dating to 2004 are due for resets next year, $53 billion the following year and a staggering $111 billion in 2018. Amy Crews Cutts, chief economist for Equifax, one of the three national credit bureaus, calls this a looming “wave of disaster” because large numbers of borrowers will be unable to handle the higher payments. This will force banks to either foreclose, refinance the borrower or modify their loans.”  

Read the rest of the article here:

Sadly, increased payments for those who can’t afford them may simply just convince them to sell, which might create a healthier market.

Let’s examine La Crescenta home values – year over year:

1)      The average price per square foot of La Crescenta single family homes is up 15% (October 2012 vs. October 2013)

2)      Foreclosures and short sales were non-existent last month versus October 2012 when these distress listings comprised 35% of the La Crescenta real estate market

3)       Last year the absorption rate was .09% versus this year’s (slightly more balanced) 1.3 – normal real estate market should be at least 3.0 (months of inventory/new listing to deplete assuming no new ones come on market.

La Crescenta Home Values 2 October 2013La Crescenta October Detailed Stats_Page_1La Crescenta October Detailed Stats_Page_2La Crescenta Real Estate Sales

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