In a recent interview, Jonathan Torres, a realtor at Lu Gordon & Associates at Coldwell Banker, discussed the key issues currently affecting the local real estate market. With a focus on the Pasadena area, Torres identified inventory shortage, rising interest rates, and intense competition as the major challenges faced by both buyers and sellers.
According to Torres, the lack of available inventory is a critical issue that affects various aspects of the market. Sellers are hesitant to put their homes on the market due to concerns about purchasing at higher interest rates. This scarcity of inventory has resulted in a high demand from buyers who are eager to secure a home, leading to intense competition. Well-priced homes in good condition often receive multiple offers, sometimes exceeding the asking price.
“Inventory is a big issue for us because real estate is supply and demand,” explains Torres. “It makes it really tough for buyers out there, especially with rising interest rates. However, despite the challenges, there are buyers in the market who are capable of navigating these conditions.”
Speaking about interest rates, Torres emphasizes that many buyers had become fixated on the historically low rates witnessed during the pandemic. However, sellers are now holding onto their properties to preserve the favorable rates they obtained through refinancing or initial purchases. This situation presents a dilemma for buyers who are feeling the pressure of competition and limited affordable options.
“Buyers need to understand that interest rates have shifted from the extraordinary lows we saw during the pandemic,” Torres advises. “While we can’t predict the future, it’s important to stay within your budget and make a move when it suits your personal circumstances.”
Torres acknowledges that educating buyers and sellers about market realities is an essential part of his role as a real estate agent. He highlights the importance of transparent communication and setting realistic expectations to guide clients toward successful transactions. Torres also emphasizes the need for sellers to work with agents who can accurately assess their property’s value and avoid overpricing it, which can lead to extended time on the market and the need for price reductions.
Despite national geopolitical issues, Torres believes that Pasadena has historically held its value well, even during economic downturns. Comparing the current market conditions to the 2008 crash, he notes that while prices may have dipped, they were not devastated like in other areas. Pasadena continues to offer opportunities for sellers who purchased before the pandemic and moderate growth for buyers.
Torres concludes by reminding clients that although interest rates may not be as low as during the pandemic, they still remain reasonably favorable compared to historical highs. By providing perspective and comprehensive market knowledge, Torres aims to guide clients toward informed decisions that align with their unique needs and goals.
Jonathan Torres is an experienced real estate professional with nine years of industry knowledge. Mentored by Lu Gordon, he quickly rose to become a business partner at Lu Gordon & Associates. Jonathan excels in marketing and strategy, creating compelling campaigns for sellers and strategically tailored offers for buyers.
As a South Pasadena native, he possesses a deep knowledge of Pasadena’s beautiful neighborhoods. With a strong work ethic and unwavering integrity, Jonathan anticipates and resolves challenges, ensuring smooth transactions and optimal results. Equipped with cutting-edge technology and backed by Coldwell Banker Realty’s global brand, he delivers an exceptional experience for his clients. Jonathan’s commitment extends beyond transactions, aiming to build long-term relationships and remain a valued resource.