Let’s take a dive into the La Canada Housing Market for May 2022:
Last month, May 2022, just twenty-eight homes sold, six less than the previous month. Average days on market were the lowest year to date. Last month, the least expensive sale was a three-bedroom, two-bathroom 1,329 square foot home. Located at 4420 Union Ave., originally listed at $1,349,000, it sold for $1,373,000. These sellers purchased this home in November 2021 for $942,000. They flipped the home. The most expensive sale was a five-bedroom, six-bathroom, 5,473-square-foot estate located at 5118 Hillard Ave. It sold at list price of $4,500,000.
The absorption rate is the lowest year to date.
Persistent inflation is still pushing interest rates higher. As a result, borrowing has become more expensive across the board. Mortgage rates, auto loans, and credit card interest have all increased. Meanwhile, consumers are still facing rising prices for everyday goods and services. To cope, more people are tapping into their savings, and others are turning to credit cards to maintain their usual spending. However, this trend raises concerns. High-interest debt can quickly spiral, especially if income doesn’t keep up. Eventually, savings may run low and credit limits may be reached. At that point, spending could drop off sharply. Since consumer spending fuels much of the economy, this poses a risk.
In short, if current patterns continue, a broader economic slowdown may follow. Rising debt, shrinking savings, and high prices could all combine to pull growth down. At Harb and Co. we continue to receive multiple offers on our listings, however not as many as in previous months. Our La Canada listing at 4720 Orange Knoll received just four offers. Three were substantially over the asking price.
