September 2020 Pasadena Real Estate Market Update


🤔 What unusual trends are popping up in Pasadena’s real estate market?
The August sales data is in…and we’re seeing a shift.
First, I’ll cover what’s happening generally.
Next, I’ll cover the luxury price points.
As you know, these are unprecedented financial times.
The price of gold, the DOW, and unemployment…
…are all at extreme highs.
🤯 This shows just how strange things are!
It’s more important than EVER to make informed financial decisions.
In last month’s update I said that Pasadena market’s recovery hit a wall.
We’re now seeing that play out in the sales numbers!
August has historically been a strong month for local sales.
But this year…?
😨 There was a 25% drop off in sales compared to July!
Happily, this wasn’t the case in my business and my clients are enjoying great results.
I sold 4 homes last month…
🙌 …and I put a 5th in escrow for 6 figures over the asking price!
BUT, the market as a whole did pull back.
The hot streak of Pasadena sales increasing month over month since May has officially fizzled out.
It’s important to remember:
The number of “SOLD” homes is a LAGGING indicator.
It tells us what has already happened, but NOT where the market is headed.
For that info we look at how many homes went into escrow.
📉 In August, about 25% fewer homes went into escrow than in July.
This is more evidence that the surge in buyer demand has cooled.
We’ve also started seeing the supply of houses rise.
There are more Pasadena houses for sale in early September than at any other time during 2020.
This isn’t great news for sellers, but it’s also not terrible news (for now)…
…here’s why:
There’s still plenty of cushion before we start seeing noticeable downward pressure on prices.
Relatively speaking, inventory is still very low in Pasadena!
We’re definitely NOT in a buyer’s market yet.
😎 Sellers in June and July hit a sweet spot where pent up demand met with low inventory.
This is precisely what I mentioned we should expect for the early part of summer in my previous updates!
So how can a home sellers secure Top Dollar in this shifting market?
Simply put: Leverage the BEST marketing strategies to get their home noticed!
Especially as inventory starts to creep up.
This is something I specialize in and it’s a key reason my clients consistently beat the market.
⚜️ How’s the Multi-Million Dollar segment of the market looking?
My clients have been seeing GREAT results here.
Last month, I sold THREE homes between $2M and $3M.
Demand is holding steady in this price range, AND…
…supply remains low!
More homes went into escrow and more homes sold hold in August compared to July.
What’s more, fewer homes entered the market.
💪 Given this data, I expect to see continued strong results in the $2M to $3M range!
How about homes at $3M to $4M?
There was 1 sale and 2 escrows opened last month.
The total number of YTD sales is trailing behind 2019.
Inventory is staying relatively flat.
👍 Homes that are marketed well and priced strategically are generating interest and selling successfully!
Later this month I’m brining a beautiful Contemporary style home on the market in this price range and I expect it to go quickly!
In the $4M+ segment of the market:
📈 Inventory continues to rise…
…and sales are few and far between.
By this time last year, we had seen just 30 new listings but 14 sales.
In 2020 things looks very different!
There have been 40 homes entering the market and just 8 sales.
Here’s the simple truth…
Regardless of the market segment, the formula for home selling success remains the same!
✅ Attention grabbing digital and video marketing
✅ Maximum market exposure
✅ Highlighting the home’s benefits rather than its features
✅ Expert negotiating tactics
By skillfully leveraging all 4 of these elements, I continue to deliver outstanding results for my clients, even as the market starts to shift.
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 reach 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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