October 2020 Pasadena Real Estate Market Update

Local housing inventory rises while sales drop…
😨…should home sellers be concerned?
Don’t miss this month’s market update! 👇
Last month, I shared how the summer sales rally had fizzled out.
The latest sales numbers confirm this!
Here’s what happened in Pasadena this past month:
📈 Housing inventory increased by nearly 10%
Closed sales remained basically flat
📉 The number of houses that went into escrow dropped off by 20%
This means it’s unlikely we’ll see a Fall / Winter sales rally like we did last year.
But, should home sellers be concerned?
After all…doesn’t rising supply and dropping demand = downward pressure on prices?
🤔 Not necessarily! There’s more to this story!
Although housing inventory is moving upward…
…it’s been a slow crawl.
Inventory is still VERY low with less than 400 homes for sale in Pasadena right now.
It’s not that buyers aren’t motivated.
It’s that there simply aren’t enough homes on the market!
I can tell you this from first-hand experience, and here’s why:
🥳️ This month alone I have 6 separate clients who are closing escrow…
…3 Home Buyers & 3 Home Sellers
All 3 of my home sellers:
✅ Received multiple offers
✅ Accepted an offer over their asking price
✅ Opened escrow in less than 30 days
And 2 of my home buyers had to beat out multiple competing buyers!
So, the demand is definitely there…
…especially for desirable homes that are properly priced, marketed, and positioned.
🔎 Now let’s “double click” on the $2M+ market, where many of my clients are active.
In the $2M - $3M range, sellers are continuing to see STRONG results.
We saw more homes in this range sell in September 2020 than in September 2019.
And, despite COVID, total year to date (YTD) sales matched 2019!
In the $3M - $4M range, inventory is holding steady, BUT…
😱…there has been a 30% drop off in sales activity relative to last year!
With a smaller buyer pool, sellers MUST leverage the latest, most engaging, farthest reaching marketing strategies.
This is something my team specializes in!
Case in point:
Last week, I brought a home onto the market at $3.1M -- 699 Lombardy Place in San Marino.
💪 Within 3 days an offer had already come in and other buyers are circling!
In the $4M+ segment of the market inventory is at an ALL-TIME high!
At the end of September, 31 Pasadena homes were for sale at $4M+
However, YTD, only 10 homes have sold in this price range.
By this time last year, 15 home sales had occurred and inventory was much lower.
If inventory continues to rise without demand following suit…
…we can expect a drop in $/Sq.Ft. for this top tier of the market.
We’re not there yet, though.
Pasadena homes at $4M+ are still commanding a median price of at least $800 sq/ft.
😊 With 6 clients closing escrow this month, my team and I continue to deliver exceptional results despite the market cooling off.
If there’s anything I can do to support you and your family with your real estate goals, please don’t hesitate to reach out!
You can find me at linrealtygroup.com
📞 OR call/text 626-807-6581
Eva Lin | Broker | Lin Realty Group | 626-807-6581
DRE01817694 | DRE02097017

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