😲 What’s happening in our local real estate market as the year ends…
…and what will 2023 have in store for home prices?
Hi, it’s Eva Lin, #1 agent for homes sold in Pasadena in 2021 & 2022.
Today, I’m sharing the latest market developments…
…and where I see the market headed.
🎢 2022 has been a rollercoaster ride for many home sellers and buyers.
Back in the Springtime, the market had never been hotter and home prices reached all-time highs.
But, while that was happening, mortgage rates were steadily climbing, inflation was becoming a problem…
…and numerous other factors splashed cold water on the hot real estate market.
Pasadena’s median $/sq. ft. then dropped for about 4 months in a row from June through September!
📉 In San Marino, South Pas, and La Cañada, buyer demand also pulled way back and house values fell.
But, over the last few months, mortgage rates have dipped down and the market has stabilized.
Supply and demand are generally balanced because…
…there simply aren’t that many homeowners putting their house up for sale.
In San Marino, for instance, there were just 4 new listings in November.
Compare that to last year when San Marino had 12 new listings for the month.
😲 And 2 years ago, there were over 20 new listings for San Marino in November!
The Pasadena numbers tell a similar story.
There were just 48 single family homes listed for sale last month (November).
But in every year from 2017 through 2021, November brought at least 70 new listings.
Home sellers have really benefited from the fact that local housing inventory has remained low…
…even as buyer demand has cooled.
⚖️ There are fewer buyers, but there are also fewer houses up for sale.
This translates to price stability.
As far as early 2023 goes, I expect more good news for home sellers.
Based on what I’m seeing in my own business, it’s clear that buyer confidence…
…has grown significantly over the past few months.
👍 In the last 30 days alone, I’ve helped 6 local home sellers open escrow.
That’s tremendous for this slow time of year!
What’s more, it looks likes mortgage rates could be back down in the 5’s next year.
This week’s Fed meeting and the ½ point rate hike is actually quite favorable, and here’s why:
Inflation is slowing and mortgage interest rates follow inflation.
😮 Last month, Fed Chair Powell also said a recession is probably unavoidable in 2023.
While I’m certainly not saying that’s good news, there is a silver lining.
In every recession over the last 50 years, mortgage rates have dropped!
With low housing inventory and more favorable mortgage interest rates…
📈…I think there’s a good chance that local home values will start to rise again in 2023.
If you’d like to discuss your upcoming home sale or purchase, you can reach me at 626-807-6581.