We’re halfway through the year and, based on a quick glance at the sales data…
…the Pasadena real estate market seems sluggish (low sales volume) and temperamental (fluctuating prices).
🤔 But is that what’s really happening?
And what does the second half of the year have in store for you if you’re planning a home sale or purchase?
Hi, it’s Eva Lin and I’m sharing my insights on our local real estate market so you can make the best decisions possible.
The June sales data was just released and here are the highlights for Pasadena.
Let’s start with housing supply.
🏠 On average, there were 120 houses for available sale last month in Pasadena.
Compare that to 117 in May and you can see that housing inventory is holding steady at low volumes.
Diving deeper, there were only 76 NEW listings that hit the market last month, which is not a lot.
Taken together, this data indicates we’ll continue to experience a low inventory environment.
And this lack of inventory is contributing to the market sluggishness I mentioned.
⚖️ Now let’s talk about housing demand, because supply interacting with demand is what drives prices.
Only 52 houses went into escrow last month, which is down 20% from the same period last year.
At the same time, the total number of closed sales dropped from 64 in May to just 44 in June.
A surface level analysis tells us that buyer demand, like inventory, is also low.
🔎 But we need to dive deeper to get the full story.
And because I’m so active in the local real estate market, I can tell you exactly what’s happening from firsthand experience.
In June, I helped 5 families complete the sale of a single family home in Pasadena.
3 of the homes sold quickly with multiple offers far over the asking price.
The other 2 houses took longer to sell and did not reach the asking price, even though we did everything possible to drive maximum buyer interest.
📊 And that’s why I said the market is temperamental right now.
More accurately stated, there are 2 different markets co-existing.
Buyer appetite for the most desirable houses in the best neighborhoods is still very strong, despite higher interest rates.
Only July 3, my clients Kendra & Justin closed escrow on their home sale in Bungalow Heaven for $1.9M, which was $300,000 over asking.
Their character-rich Craftsman at 1120 N Chester Ave fetched a great price and they’re over the moon!
And during that same week, my clients Julie & Eric, received over 20 offers on their beautifully updated house in Alhambra’s Bean Tract neighborhood.
One of the eager, prospective buyers even tracked down their mailing address and sent them flowers!
💪 So that’s one side of the market, where demand is very strong.
But, buyer demand on the other side of the market is more mild.
If your home has a few quirks or lacks broad appeal within it’s price category, then a heated multiple offer scenario is less likely.
Frankly, this is normal and this is how the market functioned before interest rates dropped to historic lows during COVID.
There’s nothing wrong with having a house that appeals to a smaller segment of the buyer pool.
It’s just important to know that it will probably take more time and effort to sell.
⚠️ And that’s why it’s essential to hire an agent who knows how to navigate all sides of the market.
With the right guidance, you can still enjoy the best outcome possible…
…even if a bidding war doesn’t develop due to limited buyer demand.
As for the coming months, I expect these market dynamics to persist:
- Inventory will remain low
- Demand for the most desirable houses will offset reduced demand in other parts of the market
- And, overall home values should remain strong if not increase slightly by year end.
If there’s anything I can do to support you, please don’t hesitate to reach out.