With the election looming and an interest rate cut just around the corner…
🤔…how’s Pasadena’s real estate market going to perform in the coming months?
Hi, it’s Eva Lin and today I’m sharing what you need to know if you’re considering a home sale or purchase in the next few months.
As the city’s #1 agent for sales…
…you can be sure that I’m highly in tune with the rhythms of our market AND the best strategies whether selling or buying.
First up, let’s talk about local home values.
💪 If you’re a homeowner, you’ll be happy to know that Pasadena values have remained strong throughout the summer, and I expect this trend to continue.
Last month, the median sale price for a single-family home was $1.64M.
Let’s put that into context, though.
Prior to 2024, the median house value in Pasadena never exceeded the $1.5M range.
This year, it’s already happened 3 times!
So, this means Pasadena homeowners have been steadily gaining equity.
Part of the reason for this is low inventory.
📉 The average number of homes for sale in Pasadena has declined over the last several years, and this has benefited sellers.
In August, on average, there were 117 houses available for sale across the city.
This is a 9% drop compared to 2023 and a 35% drop compared to 2022.
Nowadays, when you list your house for sale, buyers don’t have a lot of other options.
And prices have risen because buyer demand has outpaced supply.
This gap is about to grow larger because we’re just days away from the Fed announcing a long-awaited rate cut.
Whether it’s a quarter point or a half point, we’ll see more buyers entering the market to compete for an already limited number of houses.
📈 This means more upward pressure on prices.
At the same time, the presidential election is looming as is the holiday season.
Historically, in the months leading up to an election, we see a brief slowdown in real estate demand due to a general sense of uncertainty.
But that slowdown is always short-lived.
We also see a general slowing of real estate activity around the holiday season.
However, given that long-awaited rate cuts are finally upon us, I expect the market to remain strong for sellers in the coming months.
Here you can see how mortgage rates have been trending:
✅ Key Takeaway for Home Sellers:
Falling interest rates will act as a buffer against election uncertainty and the general market slowdown that takes place around the holiday season. The market will remain strong for sellers, particularly if your house has broad appeal.
✅ Key Takeaway for Home Buyers:
If you’re considering a purchase, the competition will only intensify as rates fall, so I recommend that you accelerate your timeline, if possible.
As always, if there’s anything I can do to support you, I invite you to reach out to me for a complimentary consultation!