Price Drops Indicate a Shifting San Gabriel Valley Real Estate Market

Price Drops Indicate a Shifting San Gabriel Valley Real Estate Market
By Redfin agent Josh Ritnimit
The percent of homes for sale in major U.S. metros with price drops has increased steadily over the past year. As of mid-2014, an average of 23.7% of all homes for sale in major markets had a price drop of $1,000 or more, up from 17.7% one year prior.
This figure is even higher in Southern California markets specifically. More than a third of sellers in Orange County dropped their price in July. Los Angeles and Inland Empire sellers were not far behind, with some 25% of sellers in each metro dropping their listing price in order to get buyers in the door.
Homes for sale in the major San Gabriel Valley markets are no exception. As of mid-September, 35% of all Pasadena homes listed for sale dropped at least once in price and a staggering 40% of all Monrovia homes for sale had price drops. Not even the seemingly bullet-proof Arcadia market is immune. Of the 236 homes currently for sale in Arcadia, 76 have dropped their price – almost 32%!
The majority of price drops are occurring in markets that had the most dramatic price gains during the mini-boom of 2013. Last year price appreciation in Pasadena, Arcadia and Monrovia was up 30 to 40 percent. The rate of price appreciation has slowed considerably as sellers gradually realize the market is changing.
This is not to say that San Gabriel Valley real estate is in a downturn. Rather, it is in the process of normalizing – a brief adjustment from the dizzying highs that actually prohibited many would-be buyers from taking the keys to their Pasadena dream-bungalow.
The price drops story will likely trail off as the seasons change (as much as they do in So Cal) and sellers begin pricing their homes appropriately from the start. For now, we’ll take it as a good sign the often contentious relationship between buyers and sellers is reaching some middle ground.

More from Business