Market Update | Feb 2023

🤔 Are bidding wars still happening around Pasadena?

And will the spring market favor home sellers or buyers?

Hi, it’s Eva Lin, #1 Realtor for Pasadena homes sold in 2021 & 2022.

Today I’m covering the state of the market in…

…Pasadena, South Pas, San Marino, and La Cañada!

Let’s jump right in…

📉 Across the board, January sales activity was down year over year.

Pasadena experienced a 25% drop in January sales compared to last year.

And San Marino, with just 3 homes sold last month, saw a 70% drop!

A key reason for this is low housing inventory.

In South Pasadena, for instance, just 6 homes hit the market last month.

This is a nearly 50% drop compared to January 2022.

🏡 And in La Cañada, just 9 homes hit the market in January.

This is a 60% drop compared to the same month last year.

When analyzing the market through the lens of supply and demand…

…it’s clear that the supply side of the equation is down!

But what about the demand side?

How active are home buyers right now?

I can tell you from personal experience that buyer confidence has…

📈…significantly risen over the last 3 months.

During autumn, interest rates were still climbing.

This caused many buyers to pull out of the market altogether.

In recent months, however, interest rates have dropped and…

…many buyers have resumed their home search.

The important thing to note is today’s home buyers are using a more measured approach.

Home buyers are taking their time.

🙅 They’re more likely to walk away from a house if they don’t love it.

And many are still waiting to see how the market develops.

If a good house comes along, they’ll write an offer, but…

…they’re less likely to fight tooth and nail to be the highest bidder.

This is a big change compared to the early part of last year.

Back then, the market was in a state of frenzy with…

😵…fierce bidding wars happening all over town.

We’re seeing this change in buyer sentiment play out in the data as well.

The number of days it’s taking for houses to sell is increasing.

In January of 2022 it took just 19 days for a house to sell in Pasadena But in January of 2023 it took 33 days.

In La Cañada we saw the number of days increase from 21 days in January 2022…

…to 32 days in January 2023.

Additionally, in both Pasadena and La Cañada, on average, homes sold…

…AT their list price last month—not significantly above or below.

⚖️ This all indicates that supply and demand have really balanced out.

If interest rates continue to fall, I expect the market to heat up significantly and…

…that will allow home sellers to enjoy more benefits of a seller’s market.

But, if rates continue to oscillate, many buyers will maintain a tentative approach.

Those buyers who remain active in the market will find some good opportunities.

As far as bidding wars go, they’re still around, but they’re less common.

🙌 I’ve already listed 3 houses for sale this year that received multiple offers within 10 days of listing.

When you have a desirable home, it’s priced attractively, and it’s marketed beautifully…

…buyers WILL compete for it, and this is how you enjoy a top dollar sale.

It’s critical for buyers to form an emotional connection with the idea of living in your home.

The key is to position and market your house strategically.

This is precisely what I specialize in because I believe special homes…

✨…deserve a special marketing approach to sell for the maximum value.

If you’d like to learn how I can help you achieve the best results possible in your home sale or purchase this year, I invite you to reach out to me.

You can call me at 626-807-6581.

Thank you so much!

Schedule your no-pressure consult with Eva Lin.

Learn how I work, deliver outstanding outcomes, and treat your interests as my own every step of the way.

Talk To Eva