Many if not most Pasadena home buyers may not be from Pasadena, say some local Realtors, as interest rates have plummeted over the past few months and the demand for homes in Pasadena has soared.
“My past experience with buyers in the last 12 months that are purchasing in Pasadena, is that only a small percentage are locals buying in Pasadena,” said Pasadena-Foothills Association of Realtors (PFAR) President Barry Storch of Town Square Real Estate.
Continued Storch, “I have had buyers relocating to Pasadena from Hollywood, Ontario, Georgia, Chicago, Las Vegas, China and New York.”
According to Storch, a higher percentage of buyers are coming to “our very desirable community from other areas.”
Storch, who has lived in the Caltech neighborhood for 30 years, said that “the varied cultural and architectural aspects are a draw for buyers who are looking for that small town experience.”
As the supply drops, it’s almost a perfect storm for buyers who can finance for less, Realtors who can more easily match prices to demand, and sellers who can make a healthy profit.
According to Robin McCrary, Realtor at Compass, home buyers here are a mix of local and out-of-town buyers, some of whom are taking advantage of lower interest rates to move out of longtime rental situations.
“We have folks that are actually coming out of the rental market because the interest rates are so low,” said McCrary. “They’re able to afford to purchase, especially a lot of first-time buyers. That’s why that first time price point is so competitive. That’s where that’s being driven from.”
Which means a lot of renters are “moving up,” said McCrary. “Especially now that we’ve been in this pandemic for a year, they’re realizing they need a different space, a different configuration. And with the interest rates being so low, they’re just trading equity for equity in that buy-up.”
Out of the area buyers have “not been my experience,” said Todd Hays, Realtor with Deasy Penner Podley, “but we have Realtors who may specialize in transfers.”
Transfer agents who work with Caltech or ArtCenter, for example, are going to have much broader experience with out-of-state clients, said Hayes.
And while prices in Pasadena may seem high to some, clients in West Hollywood or Santa Monica may see the area as a bargain compared to the West Side, Hayes added.
“Like most of my clients and a lot of other agent’s clients,” said Hayes, “if they’re on the West side, either in West Hollywood or Santa Monica, and they come to Pasadena, they get a dramatically bigger house for the same cost.”
And though the Pasadena real estate market is in such a dynamic state, said McCrary, the same sensible home buying advice still applies.
With regard to renters who are buying their first home, McCrary says, “Besides being pre-approved with a great lender, it’s really important to find a real estate agent that you feel comfortable with, that you trust and you know will look after your needs.”
