Pasadena & Foothill Market Insights – What Homeowners Should Know

The Pasadena-Foothill region continues to mirror national real estate dynamics while maintaining its own unique rhythm. According to the latest insights from the NAR 2025 Buyer & Seller Profile, shared by PFAR, today’s housing landscape remains defined by uneven affordability, shifting buyer demographics, and evolving market momentum.

Affordability Still Front and Center

Affordability remains one of the biggest challenges across the country. Monthly principal and interest (P&I) payments have risen 2.9% year-over-year, keeping many would-be buyers cautious. Even with steady wage growth, elevated home prices and recent rate trends have kept entry-level buyers on the sidelines longer.

In Pasadena and the Foothill communities, this has meant fewer first-time buyers and a continued dominance of equity-rich move-up buyers and cash purchasers—consistent with PFAR’s “Tale of Two Markets” narrative.

Rates Begin to Ease

There’s good news ahead: mortgage rates are finally starting to decline as the market transitions into a rate-cutting cycle. While rates remain higher than the historical lows of the early 2020s, early signs of easing could bring renewed energy to the 2026 market, particularly in high-demand neighborhoods like Pasadena, Sierra Madre, and Monrovia.

Inventory Trends: More Choices, But Slower Sales

Inventory levels are growing faster than existing home sales, which means buyers have more options, but sellers may experience longer days on market. This is a healthy normalization after years of frenzied competition. Sellers who adapt to market conditions—pricing strategically and presenting homes thoughtfully—continue to achieve strong results.

The Broader Economic Picture

Zooming out, the macro environment remains complex. Inflation is cooling, interest rates are easing, and job growth is steady, yet affordability pressures linger. These factors together are setting the stage for what could be a very interesting 2026.

As we move through the seasonally slower months, inventory growth and declining rates could align to create strong pent-up demand when the spring market arrives. Staying attuned to both real estate and broader economic shifts will help homeowners and buyers stay a step ahead.

Final Thoughts

For Pasadena and Foothill homeowners, the key takeaway is balance—this market rewards patience, preparation, and adaptability. Whether you’re considering selling, refinancing, or simply keeping tabs on your home’s value, the next few months are an ideal time to plan your next move before spring’s renewed activity.