Your Home Sold Guaranteed Realty - Rudy Lira Kusuma Real Estate Team

Rudy L. Kusuma
Rudy L. Kusuma
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Sell a House Fast in Pasadena Despite a Potential Housing Crash

Learn How to Sell a House Fast in Pasadena, CA

Are you a home seller in Pasadena, CA? If so, you may be worried about whether a potential housing crash will make it harder to sell a house fast in Pasadena. Rising interest rates and high inflation might have you understandably nervous about entering the market. 

As of late 2022, inflation is at 8.2% and interest rates are close to seven percent. While interest rates are more likely to impact home buyers, they have effects on home sellers as well. 

In this post, our team at Your Home Sold Guaranteed Realty – Rudy Lira Kusuma Real Estate Team will discuss four ways to sell a house fast in Pasadena, CA, during a tough market. We’ll also explore what a housing market is and whether we’re headed towards one.

How Does a Housing Market Happen?

Housing crashes are almost always preceded by an unsustainable housing bubble. Housing bubbles occur when home prices reach high levels due to high demand, low supply, and ideal market conditions such as low interest rates. Not every bubble ends in a crash–  it’s only when these prices become unsustainable that a bubble bursts.

So, what causes a bubble to burst? There are typically several other factors in play to cause a crash, such as lower mortgage rates, looser credit standards, and investor speculation in the real estate market.

Housing crashes can occur on a national scale, or more locally in a specific city or state. In addition, housing crashes may or may not occur at the same time as other economic conditions such as a recession. 

How Did The 2008 Housing Crash Happen?

Most people are familiar with the housing bubble that burst in 2008 and the Great Recession that followed. Due to the current economic conditions, many are wondering whether we’re headed towards a repeat of this incident.

So, what happened to cause the housing crash in 2008? In the early 2000s, the housing market had been booming. It wasn’t until 2006 that home prices reached a peak before dropping dramatically in 2008, when the Case-Shiller home price index recorded the largest price drop in its history.

After the crash, many homeowners suddenly found themselves unable to afford their mortgages or with homes that were worth less than their mortgages. This was partially due to lower credit standards at the time of purchase.

As a result, banks and lenders were left on the hook for mortgages. This caused a credit crisis that led to many foreclosures and the recession that followed.

Will There Be Another Housing Crash?

The housing market has been booming over the past several years. This fact, combined with high inflation and interest rates, has many homeowners wondering whether the market will end in a housing crash as it did in 2008.

First, it’s important to distinguish a hot market from a housing bubble. Bubbles are relatively rare and are usually defined by unsustainable growth in housing prices and low mortgage rates. Hot markets, on the other hand, are much more common. They’re influenced by local market conditions and the levels of supply and demand in that particular area.

While it’s impossible to predict with 100% certainty, most real estate experts seem to agree that we’re not headed towards another housing crash. This is because demand is high, supply is still low, many home buyers are more creditworthy, and lenders have stricter lending requirements.

In fact, while home sales in June 2022 dropped by 5.4%, the median sales price was still up 13.4% from the same point last year.

High interest rates may lead to lower housing prices or an overall plateau in prices, but this doesn’t mean there will be a sharp crash like the one in 2008.

How Do iBuyers Affect the Housing Market?

Another factor to consider when considering selling a house in Pasadena, CA, during a housing crash is the role of iBuyers. iBuyers are companies that buy homes as-is, directly from home sellers. The seller does not need to fix the home, list and market it, or work with a realtor.

iBuyers use an algorithm to determine what to pay for the home. They make their profit by fixing up homes and selling them for a profit.

iBuyers are relatively new, but they have the power to influence the local market in a particular area. They sell these flipped homes for prices that ordinary home sellers struggle to compete with, which can affect overall prices in the area.

Ultimately, it’s best to get the opinion of a realtor about the potential effects of iBuyers on the local housing market. They can help you decide when and how to sell your home in a way that still gets you top dollar.

4 Tips to Sell a House Fast in Pasadena, CA, During a Housing Crash

1. Price Your Home Right

If you need to sell a house fast in Pasadena during a potential housing crash, it’s more important than ever to price it accurately.. You’ll likely have to price it lower than you could have before interest rates became high.

Pricing the home too high will scare away buyers looking for cheaper deals to compensate for more expensive mortgage rates. However, pricing too low means you miss out on potential profits.

Working with a realtor with in-depth knowledge of the local area is essential in a recession. They have specialized knowledge of the pattern of home prices in the area and can come up with an individualized pricing strategy in a way that iBuyers and other algorithmic methods can’t.

2. Make Your Home Move-In Ready

Another tip to sell a house fast in Pasadena, CA, during a housing crash is to make sure it’s move-in ready. In tough economic conditions, home buyers probably don’t have the necessary funds to renovate or repair a home.

Investing in your home to make it ready for its next owner will help it sell much faster. This includes getting a pre-inspection, making necessary repairs, hiring a professional cleaning service, and ensuring that furniture, decor, and colors are as neutral as possible. A realtor can also point out other specific things home buyers in the area are looking for.

3. Get Your Timing Right

Depending on your situation, selling a house during a housing crash can be tricky. It goes without saying that it’s better to sell a home before a recession, where lower housing prices mean you may sell for less than you initially paid.

If you can afford to wait, it may be better to do so. But if you need to sell now, make sure to work with an experienced realtor who can help you carefully consider prices in your local area. They can help you decide how long to wait before housing prices in the area fall even lower.

4. Decide if You Also Need to Buy

If you need to buy a home after selling your current one, you may not need to worry as much about timing. A home is an investment like any other– if you want the most profit, your goal should be to buy low and sell high. So if you sell your home at a lower price during a recession, this also means you’ll be able to buy one at a lower price.

And as the economy recovers and your equity grows, you’ll eventually be able to sell it at a higher price than what you originally paid.

Our Team Can Help You Sell a House Fast in Pasadena, CA

If you need to sell a house fast in Pasadena during a tough housing market, you’ll need a local solution. At Your Home Sold Guaranteed Realty – Rudy Lira Kusuma Real Estate Team, we recognize that the current economy has many home sellers worried. 

That’s why we’re proud to offer our services and unique guarantees. These guarantees set us apart from other realtors in Pasadena, CA.

We have specialized knowledge of the local housing market in Pasadena, Rosemead, and the surrounding communities. Over the years, we’ve helped thousands of families in Southern California sell their homes fast and for top dollar, and we know we can do the same for you.

Unlike other realtors, this isn’t just an empty promise. Thanks to our Guaranteed Sale Program, we can guarantee your home will sell for a certain price and within a certain timeframe. Otherwise, Rudy and his team will purchase it themselves.

To learn more about our home seller guarantees, or for more information on working with us, give us a call at 626-789-0159 or fill out the form below.

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