Let’s dissect La Canada home sales January 2020: Below we will compare January 2020 to January 2019:
Each month Harb and Co. calculates both the median and average selling prices. The median price is where half the homes sold for more and half sold for less. The median is more indicative of market conditions than the average selling price. Average selling prices can easily be skewed by a relatively small share of upper-end transactions.
So what’s changed? The decrease in the average selling price (year over year) indicates that the lower end of the market is the driving force in La Canada. As La Canada real estate values (on the low end) have escalated the median selling price has increased. The top tier of the La Canada housing market has severely slowed down. “Moderately priced homes are in high demand and short supply, pushing up values and eroding affordability for first-time buyers. Homes that sold for 25% or more below the local median price experienced a 5.9% price gain in 2019, compared with a 3.7% gain for homes that sold for 25% or more above the median.” – Dr. Frank Nothaft Chief Economist for CoreLogic.
Five of these thirteen La Canada home sales had price reductions prior to selling. Five took longer than 100 days to sell – 105 -223 days on market.
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