The Real Estate Paradox: Soaring Interest Rates, Yet High Demand in La Crescenta
Hey there! James You, La Crescenta Real Estate Specialist here, if you're feeling a mix of curiosity and anxiety about the state of the La Crescenta real estate market, you're not alone. I'm here to cut through the noise. So, buckle up, and let's dive right in.
Interest Rates Skyrocket, but Demand Isn't Backing Down
First off, the talk of the town is that interest rates have reached a whopping 22-year high, hovering around 7.5% to 8%. You might think this would cool down the market, right? Wrong! Despite the financial challenge this poses, homebuyers are still hungry for properties, keeping demand robust. Why? Supply is tighter than ever.
A Month to Remember: August's Rollercoaster Ride
August was electric! Drive down Foothill Boulevard, and you'll see "For Sale" and "Open House" signs everywhere. We had 23 homes sold and 35 homes under contract. Now, that sounds promising, but hold your horses! Only 14 new listings hit the market. Compared to a typical August, that's a staggering 60% drop in new listings. So, let's be real: the supply crisis is far from over.
The Price Tag? Going Nowhere but Up!
Now, talking numbers. Despite these sky-high interest rates, home prices in La Crescenta remain sturdy, averaging $1,456,000—an 8% increase year-over-year. And the price per square foot? A solid $894, up 13% from last year. You see, scarcity drives prices up. It's Econ 101, and that's what's unfolding right in front of our eyes.
The Breakneck Speed of Sales
Here's a fact to fuel your FOMO: the list-to-sale ratio was a ridiculous 110% in August, with homes staying on the market for a mere 16 days. That means bidding wars are fierce. I recently helped a client beat out 26 other offers. Yes, 26! The competition is cutthroat, folks.
What's Really Crashing? Not What You Think!
You might have come across alarming headlines saying the real estate market is crashing. Don't fall for it. What's really dwindling is not the prices, but the volume of sales—down by about 50% this year. That's a symptom of the low supply, not a lack of demand.
Your Move, Homeowner
So, if you're a homeowner in La Crescenta, sitting on the fence about selling, there's no better time to check your home's value. Click the link below for an up-to-date valuation. Got questions? Reach out. I'm always up for a chat!
So, there you have it. We've got a paradox on our hands: interest rates are at an all-time high, yet the market is still buzzing. It's a wild ride, but one thing is clear: this market isn't for the faint of heart. Stay informed, stay brave, and let's navigate these tricky waters together.
If you have further questions or would like to discuss your particular situation, give me a call - I am here to help.
James You 213-905-2225 [email protected]