Let’s dissect the La Crescenta housing market for May 2022:
Last month thirty-two homes sold up. While the average sales price slightly decreased the median selling price increased by $45,000. The least expensive La Crescenta sale was a three bedroom, two bathroom, 1,104 square foot home located at 3356 Prospect Ave. which sold for $800,000. This home was originally listed for $775,000 and sold in thirty-four days. The most expensive sale was a six bedroom, three bathroom, 3,315 square foot home located at 2804 El Caminito. While originally listed for $1,899,000, it sold for $2,155,000 in just nine days.
The absorption rate remains very low which indicates a very unbalanced market.
Last week was a fairly light week of data. The biggest takeaway is that we closed last week with negative momentum for interest rates. That momentum really carried the ten year treasury bill up to 3% and that’s where the market traded most of last week. The direction of rates, and the United States financial markets will be determined by the CPI (consumer price index) data. This week we have the Fed meeting as well. It appears we may have a fifty basis point (.5%) interest rate increase at that meeting and possibly again for the upcoming meeting in July. Indications are that if oil is this elevated, inflation will also remain elevated, which means that rates will further increase. The financial market continues to be extremely volatile. And as we have seen in years past it can move very quickly in either direction.
Related Post: Rising Interest Rates and Their Impact on the Los Angeles Real Estate Market