😲 Are we starting to see early signs of a buyer’s market in Pasadena?
Hi, it’s Eva Lin and I have some very important news to share with you today, especially if you’re thinking of buying or selling a home around Pasadena this year.
The latest sales data is in, and here’s what it says:
First up, Pasadena home values remained strong last month with the median price for a single-family home coming in at nearly $1.65M.
For context, that’s the second strongest month on record as far as prices go.
📈 Another way to look at home prices is through Price Per Square Foot, and using that metric, Pasadena values have never been higher!
Now, while this data is interesting, it’s telling us about what has ALREADY happened, not what is likely TO happen.
After all, houses that sold in May initially opened escrow back in March and April.
So, the May values tell us how buyers were behaving during the early spring time.
As we kick off the summer season, market dynamics are starting to shift.
📉 For instance, last month, there was a 40% drop in the number of Pasadena houses that went into escrow, compared to the previous month.
At the same time, the average number of houses available for sale increased by more than 25%.
These month over month changes indicate a shift toward more supply and less demand.
But, one additional piece of data that’s important to take note of is the number of new listings hitting the market and that was just 71 last month, which is quite low.
This particular number is important because it tells us that there is not a ton of new inventory coming in to push prices down.
As I mentioned in last month’s update video, the market is basically split between (A) those houses that are most desirable and (B) those houses that buyers don’t instantly fall in love with.
😍 The most desirable houses continue to sell quickly with multiple offers and premium prices…
…while the other homes are taking longer to sell.
With interest rates remaining high and overall inventory remaining low (despite the recent month-over-month increase), buyers are being very selective and they’re willing to wait for a house that inspires them.
That’s why we’re simultaneously seeing high sales values even as inventory starts to rise and new escrows start to fall.
Simply put, the less desirable houses are sitting on the market while the most desirable ones are being bid up and sold quickly.
♟️ So, if you’re planning to sell your home, it’s important to understand these dynamic that way you can implement the best strategy possible.
This often means taking some time and investing in touch-up projects before placing your house up for sale.
It could also mean investing in great home staging as opposed to just going with the most cost effective option.
And, of course, it means making sure your home’s marketing is incredibly well executed.
Nowadays, these things matter more than ever in terms of influencing the price your home will command.
I can tell you this from firsthand experience, having already helped 20 local families complete a home sale so far this year!
👍 And for buyers, right now you can enjoy the benefits of a buyer’s market when you find a home that has great potential, but hasn’t been presented in the best light.
You probably won’t be up against multiple offers and that allows you to have much more leverage during the purchase process.
So, now you’re up to speed on what’s happening in the Pasadena real estate market.
If there’s anything I can do to support you, feel free to reach out!
I hope to chat with you soon!
