🤯 Is “20% Over Asking” Back Again!?

And if so, how’s that even possible with interest rates in the high 6’s?

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

Today, I’m unpacking what’s happening in our local real estate market…

👍…so you can make the best financial decisions possible.

To answer the first question I posed—Yes! Home buyers have been bidding much more aggressively recently.

It’s not uncommon to see the most desirable houses selling for 5, 10 or even 20%+ over asking.

And it’s not uncommon for 10 or even 20+ offers to come through.

This is in stark contrast to how the market was performing from July through March.

🤔 So, what’s changed, what’s driving these market dynamics, and what does the future hold?

For one, buyers now understand that 3% – 4% interest rates aren’t coming back…

…and buying a house will usually mean accepting a higher rate.

Most folks weren’t comfortable with that 6 months ago.

But now, in May of 2023, rates in the 6’s are the new normal, so more buyers have jumped back in the market.

🏡 Second, many home buyers realize the best houses are going to receive plenty of interest.

They’ve also learned the list price is usually just a starting point for the bidding…

…and not a reflection of the home’s current market value.

This means more willingness to submit an offer that’s significantly over the asking.

Third, housing inventory is very low.

Those super low interest rates from the past few years have disincentivized would-be move-up home sellers from selling.

That’s because they re-financed and locked in those incredibly low rates.

😵 As a result, if they sell today, their monthly mortgage payment could double for a house that’s just a little bit bigger.

And that’s why we’re seeing such a serious shortage of housing inventory.

Last month, for example, just 60 houses went up for sale in Pasadena.

During the same month one year ago 110 houses went up for sale…almost double!

In San Marino, South Pas, and La Cañada the same market dynamics are playing out.

Many homeowners who would otherwise be selling are now staying put.

⚠️ With all that said, there is a “Tale of 2 Markets” to be aware of right now.

Part of the market is red hot for home sellers while the other part is just lukewarm.

As I mentioned, the homes that are most appealing to buyers are seeing serious demand…

…so long as they’re presented beautifully and priced attractively.

On the other hand, things are very different for houses that:

– Have a few unaddressed drawbacks OR

– Are not presented beautifully to the market OR

– Are not priced attractively.

🔎 These homes are sitting on the market because buyers are being much more selective nowadays.

Today’s homebuyer is willing to accept a higher interest rate or pay all cash…

…if it means securing a highly desirable house.

But, if the house doesn’t inspire them, then they’re likely to pass even though inventory is low.

The frenzied sense of urgency to buy a house and lock in a low rate just doesn’t exist anymore.

So, if you’re planning to sell your home soon and you want to maximize the sale price…

…now’s the time to start those important touch up, repair, decluttering, and beautification projects!

💰 Your return on investment will be huge and you’ll avoid finding yourself in the “lukewarm” market!

If you don’t know where to start, just reach out to me.

My team has great expertise in coordinating this entire process on your behalf.

Once your house is ready to go on the market, it’s critical to market it powerfully and price it strategically.

I know exactly how to do this, and I’ve already helped 16 local families…

💪…enjoy an exceptional outcome with their home sale or purchase this year.

As for how the rest of the year will unfold, the most important thing to know is this:

Most experts agree that mortgage interest rates will drop in Q3 and Q4.

That’s because the inflation numbers are expected to look much better by then.

This will mean more buyers entering the market with a still limited supply of houses available.

📈 As a result, house values will remain strong and are likely to continue rising.

If you’d like to schedule a complimentary consultation to discuss your upcoming real estate needs…

…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.

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