Will Rate Cuts Start to Fuel a Seller’s Market?

Hi, I’m Eva Lin, Pasadena’s top-selling realtor.

Today, I want to dive into how our local market is performing right now—and whether potential rate cuts could shift things back toward a seller’s market.

Supply vs. Demand in Pasadena

Let’s start with the basics: supply versus demand for single-family homes here in Pasadena.

• Supply: The number of homes for sale has risen about 20% compared to 2024. That’s a meaningful jump.

• Demand: Home purchases have also increased, but by a smaller margin—around 15% year over year.

So, while demand is growing, supply is outpacing it just slightly.

How Are Home Values Responding?

Here’s where it gets interesting.

• Overall, Pasadena home values are up about 5% in 2025, based on median sales price.

• But performance isn’t uniform across price ranges:

  • $1.5M–$2.5M: Still leaning toward a seller’s market.

  • $2.5M–$4M: Fairly balanced.

  • $4M+: Tilted toward a buyer’s market.

This shows that while the market looks “up” on paper, conditions vary widely depending on price point.

What About Interest Rate Cuts?

There’s been a lot of buzz in the headlines about potential rate cuts—and whether they might spark stronger demand.

Here’s the math:

• A buyer shopping for a $2.5M home with 20% down would save about $1,300 per month if rates dropped a full percentage point.

• While that’s a nice savings, it’s unlikely to create the kind of surge in demand that would flip the whole market back to a strong seller’s market.

Unless we see massive rate cuts (which is unlikely), my expectation is that Pasadena will remain fairly balanced.

Bottom Line

The Pasadena housing market in 2025 is steady, with supply slightly outpacing demand and values modestly up overall. Rate cuts—if modest, as expected—are more likely to stabilize the market than dramatically change it.

If you’re considering buying or selling and want tailored strategies for your price point, I’d love to connect. Let’s make sure you’re positioned to succeed, no matter how the market shifts. You can always call or text me at 626.807.6581 to set up a time to talk.