Home Prices Are Dropping! 2023 Market Update / La Crescenta Edition
Are you curious about the recent shifts in the housing market in La Crescenta, Los Angeles? October brought some intriguing changes worth noting. Let's dive right in!
A Glimpse at the Numbers
In October, we observed a significant trend: a cooling in home prices. The average sale price dropped to $1,290,000. This marks a 13.3% decrease from the peak in July and a 5% drop from September. However, it's important to see the bigger picture. Year-over-year, home prices still rose by a solid 11%.
Days on Market: A Key Indicator
A standout data point was the average days on market, which jumped to 42 days. This is a noticeable increase from the swift sales we've been seeing (often in the teens). So, what's causing this slowdown in prices and the longer days on the market? It's a mix of seasonal trends, economic conditions, and a spike in mortgage rates to 8% – the highest in over two decades.
The mortgage purchase application rate, an indicator of people applying for home loans, is at its lowest in nearly 30 years. In October, we had only 10 closed sales, with some homes taking over 120 days to sell. This skewed the average days on market, but 42 days is still significant.
Inventory Shifts: Good News for Buyers
Throughout this year, we've seen record lows in new listings. However, October brought a positive change for buyers – 21 new listings entered the market. This is more aligned with a normal market trend. Interestingly, we're seeing more options and less competition for sellers, which is usually uncommon as we move into the fourth quarter.
Advice for Sellers and Buyers
Sellers, it's crucial to price your homes fairly. We're noticing more price drops across LA. Homes priced competitively or even below market value are getting the best results and multiple offers. If possible, consider listing in January when the market might be more favorable.
Buyers, with more inventory and a seasonal slowdown, the fourth quarter could be your chance to find great deals. However, be aware that higher interest rates are likely here to stay, possibly into 2024 or even 2025.
Your Next Steps
If you're in La Crescenta and curious about your home's value in this evolving market, click on the home value link below for an up-to-date valuation. And if you have any questions about the market or making a move, reach out anytime. I'm here to help!
Curious about your home's current value: ThinkHomeValue.com
Need Expert Real Estate Guidance in La Crescenta? Contact James You at Think Real Estate for personalized assistance and insights.