😲 What big shifts are happening in our local real estate market?
And, what should sellers and buyers expect during the Spring season?
Hi, it’s Eva Lin, #1 Realtor for homes sold in Pasadena through 2021 & 2022.
There’s been a noticeable shift in the supply vs. demand equation for local houses.
This is having a real impact on home prices.
👇 On the supply side, housing inventory remains very low.
Consider this: On average, there were around 100 houses for sale in Pasadena last month.
BUT, during the same month a year ago, there were nearly 150 houses for sale.
That’s a major drop in housing inventory.
And based on the data, it looks like inventory will remain low through the Spring.
Here’s why:
🏡 Just 51 houses went up for sale last month in Pasadena.
During the same month a year ago, over 90 houses went up for sale.
Looking at these data points in San Marino, South Pas, and La Cañada, the story remains the same.
Fewer homeowners are putting their houses on the market this year…
…and as a result, fewer sales are happening overall.
The number of houses sold during Q1 for Pasadena was down 30% year over year.
La Canada was down 40%, San Marino was down over 60%, and South Pas was down 16%.
🔥 On the demand side of the equation, things are heating up.
A lot of buyers have accepted the new environment for interest rates.
It’s a roller coaster ride and once again, based on the recent CPI report…
…it looks like the fed will raise rates another ¼ point.
But, this is the new normal.
Even though we’re not seeing the traditional influx of houses going up for sale at this time of year…
…we ARE seeing increased buyer activity.
🙌 In the last 30 days, I’ve personally helped 4 different home-buying families get their offers accepted.
Each time, we had to compete against other bidders…
…and I had to pull out all my best strategies to ensure my clients came out on top.
Housing supply has been low for a long time.
And with buyer demand now picking back up, home prices are beginning to rise again.
Last month, the median price per square foot for a house in Pasadena was $829.
That’s the highest we’ve seen in 10 months!
🤯 In South Pasadena, that number was over $1,100 (the highest on record for the city)!
And in La Cañada, the median price per square foot was just over $1,000…
…making it the 3rd highest month on record.
So, if you’re planning to sell or buy a home in the coming months, what should you expect?
👉 Home Sellers:
One of the most important things you can do is choose the right list price.
This is likely going to be lower than you expect, but remember…
…the goal is to garner maximum interest.
😀 The list price should pique the interest of home buyers.
It should generate multiple offers, and ultimately…
…bid the offers up to the maximum level that the market will bear.
If you price your home strategically, home buyers will be able to fall in love with it much more easily.
And that always results in the highest offers.
👉 Home Buyers:
The tide is quickly shifting in the seller’s favor, especially for the best houses.
While we’re not back to the crazy bidding wars of 2021 and early 2022…
…the competition for homes has ramped up compared to the fall and winter.
💪 You’ll need to work with a very strong agent who knows how to:
1) Ask the right questions of the listing agent to give you an edge
2) Negotiate powerfully on your behalf
3) Find off-market homes for you
4) Maximize the odds of you getting your offer accepted in a highly competitive environment.
If you have any questions about the market or…
… if you’d like to discuss your upcoming home sale or purchase, I invite you to reach out to me.
☎️ You can call me at 626-807-6581.
Thank you so much!