😲 How is the Pasadena real estate market reacting…

…to mortgage rates that are still over 7%?

The latest sales data is in, and I think you’ll be surprised by some of the numbers!

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

You probably heard that the Fed raised rates again recently…

⚠️…and you might think this would slow the real estate market down.

In some ways it does but in other ways it doesn’t.

Let me explain what I mean.

With mortgage rates over 7%, many homeowners have little incentive to sell their house.

Selling means they’d have to trade a low interest rate for a high one.

As a result, they’re opting to stay put.

📉 That’s caused a low inventory market with far fewer sales than we’ve seen in recent years.

Year to date, the total number of houses sold in Pasadena is down 32% compared to 2022!

So, in one sense, there IS a market slowdown.

At the same time, home prices remain strong, and sales are happening very quickly.

That’s because there’s still a large contingent of homebuyers actively writing offers…

…on the limited number of houses available.

Either they have strong financing or they’re undeterred by the current interest rates.

Many of these homebuyers are counting on 2 things:

1️⃣  Continued price appreciation

2️⃣  The ability to refinance in a year or two at a better interest rate

Recent sales data shows this dynamic at play.

Last month, the median “Days On Market” in Pasadena was just 10 days.

Days on Market refers to the amount of time from when a house is listed for sale…

…to the time when it goes into escrow.

🤯 10 days is extremely fast by any measure!

To put things in context, in a balanced market DOM is 30-40 days.

As far as prices go, the median price for a single-family home in Pasadena was nearly $1.37M in July.

That’s 5% higher than July of last year.

So, home prices are holding strong because…

⚖️…high interest rates are being counterbalanced by low inventory.

Here’s what the actual numbers show for inventory:

In July of 2023, just 66 houses hit the market in Pasadena.

That’s 25% fewer houses than the same month last year…

…and nearly 50% fewer than July of 2021!

I expect this low inventory environment to be the norm UNTIL interest rates drop.

🏡 Once that happens, many more homes will hit the market…

…and many more buyers will start writing offers.

If you have any questions about how to navigate this tricky market, I invite you to reach out to me.

My team and I have already helped dozens of local families enjoy GREAT outcomes with their home sale or purchase this year.

😃 We’re here to support you too!

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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