While home sales and employment in California continued to march forward in February, recent banking turmoil has increased uncertainty on many fronts, including the housing market. Despite declines in long-term yields, ongoing pressures in the financial system could cause smaller banks to tighten lending standards and may have an adverse effect on housing demand. The Fed, nevertheless, enacted its ninth rate hike since March 2022 but hinted there might only be one more to come before the end of the year. Mortgage rates, as a result, slid for the second consecutive week and reached their lowest level in a month. This has motivated many buyers to come off from the sidelines as mortgage applications increased for the third week in a row. Courtesy C.A.R.
Los Angeles, CA
Mon Apr 03 2023
This week the median list price for Los Angeles, CA is $1,400,000 with the market action index hovering around 41. This is about the same as last month’s market action index of 41. Inventory has increased to 1,111.
The market has not shown strong directional trends in terms of supply and demand. However, inventory is sufficiently low to keep us in the Seller’s Market zone and prices have been moving upward as evidence.
Mon Apr 03 2023
This week the median list price for Pasadena, CA is $1,697,500 with the market action index hovering around 46. This is less than last month’s market action index of 47. Inventory has decreased to 88.
Market appears to have begun to cool. As we’re still notably in a Seller’s market, prices have not yet adjusted. If the market continues to cool, then expect prices to follow lower. It may take a few more weeks of slack demand for prices to reflect and begin to fall. Expect this condition if the index falls to the Buyer’s zone.