November 2020 Pasadena Real Estate Market Update

🤯 A record setting month for Pasadena Home Sales!
Is your home's value at an all-time high?
👇 The latest sales data is in and you don’t want to miss this update…
Here are the highlights:
In October, 158 homes sold in Pasadena.
This is a massive 41% increase compared to September, when only 113 homes sold.
For context, it’s been 2.5 years since Pasadena had a stronger sales month.
That’s just the beginning though…
💲 Avg Sales Price vs. Asking Price hit a 15 year high last month!
That number climbed to nearly 104%
The percentage of homes selling for AT LEAST the full asking price also hit a 7 year high at nearly 70%
Lastly, October home sales happened with record speed.
On average, homes only took about 30 days to sell--a 15 year low.
Consider, in October of 2019 homes took an average of 50 days to sell.
🤔 So, what caused this incredible sales rally to materialize out of the blue?
Remember, Pasadena home sales dropped significantly from July to August
And then sales dropped again from August to September…
At the same time, housing inventory started to slowly creep up.
The number of new escrows usually predicts future sales, but there was no major jump in September escrows.
😒 All signs pointed to October being a 3rd consecutive month of slow sales for Pasadena...
...and that was the case until the last 10 days of the month when an avalanche of home sales started to close.
What’s driving this sudden flurry of sales activity?
Based on what I’ve seen with many of my own clients over the last 6 weeks, motivation is reaching PEAK levels.
This applies to both sellers and buyers.
Many of my Home sellers have been feeling uncertain about COVID, the election, and the future of the economy.
⏳ They feel that now is the time to sell and cash out, in case the economy falters in 2021.
Many of my Homebuyers are expecting COVID restrictions to persist through next year.
That means childcare at home, working from home, and altogether just spending a ton of time at home.
🏠 With year-end quickly approaching, homebuyers are more serious than ever about improving their living situation so they can be more comfortable and grounded next year.
Peak Urgency + Limited Housing Inventory = Record-setting October Sales Rally
Multiple offers bid home prices up and that’s why the sales price vs asking price ratio hit a record high.
Buyers are using shorter contingency periods to sweeten their offers and that’s why homes are selling at record speed.
I experienced this firsthand in my own business.
👍 We had a record-setting month with 5 closed sales and 9 new escrows opened.
Also, for the 5th time this year, I sold a home for $100,000+ over the asking price!
The million-dollar question is, how long will this peak motivation last?
I don’t have a crystal ball, so I can’t answer that.
It depends on perceptions about the election, interest rates, COVID restrictions, and the health of the economy…
📉 For now, the best thing we can do is look at housing inventory and interest rates, both of which remain very low.
So long as buyer motivation remains high, we’ll continue to see sellers thrive and buyers compete.
If you’d like to discuss how best to take advantage of current market conditions, please feel free to reach out to me at 626-807-6581.
Eva Lin | Broker | Lin Realty Group DRE01817694 | DRE02097017

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