😲 Pasadena’s real estate market is very strong for home sellers right now, BUT…
…will upcoming interest rate hikes slow things down?
Hi, it’s Eva Lin, #1 Realtor for Pasadena Homes Sold in 2021 & 2022.
The latest sales data is in and I’m breaking down exactly what you need to know…
…if you’re planning to sell or buy a home in Pasadena this year.
I’m also sharing my insights on South Pas and San Marino.
First up, let’s talk about Pasadena home values.
Last month the median $/sq.ft for a single family home was $918.
📈 That’s an all-time record for the city!
Another way to look at home values is by analyzing the “median sales price.”
That number came in over $1.5M last month, which makes it the 2nd highest on record.
So, no matter how you cut it, Pasadena home values are very strong right now…
…and there’s no mystery about why that’s the case.
Simply put, there still aren’t enough houses hitting the market to meet buyer demand.
🏠 In Pasadena last month, there were 116 houses available for sale, on average.
That number is far lower than we’d expect, based on the market’s performance in recent years.
For context, in June of 2021, there were over 200 houses for sale and in June of 2022 there were 176.
So, you can see just how extreme the drop in housing inventory really is!
Limited housing inventory combined with strong buyer demand is causing home values to rise.
🤔 You might be wondering…
…“How long will this last AND are values going to drop during the second half of the year?”
While I can’t predict the future, I can share a few insights and observations.
1⃣ I don’t expect the low inventory situation to change anytime soon.
The number of new listings hitting the market is very low and…
…until interest rates fall, low inventory will remain the norm.
2⃣ Based on the latest economic data, it looks like the FED won’t be lowering interesting rates this year.
On the contrary, we’ll likely see two more 1/4 point rate hikes.
Here’s the thing though–
In our local market (Pasadena, South Pas, San Marino, La Cañada)…
…buyers are less impacted by interest rates and more impacted by low housing inventory.
That’s because there’s no shortage of folks out there with very strong financing.
💪 What’s more, many buyers in our market can make a full cash offer.
The problem local buyers face is a shortage of desirable houses.
While demand will ebb and flow during different times of the year, overall…
… demand will continue to exceed supply and that means upward pressure on house prices.
Taking a quick look at other local markets…
…in South Pasadena 9 houses sold last month at a median $/sq.ft. of $1,037.
And in San Marino 12 houses sold at median $/sq.ft. of $980.
📊 Because the total number of houses sold in these cities is quite low…
…the month-to-month pricing data can be easily skewed by outliers.
But, overall, the market trends are similar to what we’re seeing in Pasadena (where 54 houses sold last month).
Inventory is low and homes continue to sell quickly at strong price points.
If you have any questions about 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!