San Gabriel Valley’s Market Resilience Defies National Housing Trends

Written by:

Steve Marcinuk

Date:

11 Mar 2026

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While much of the country’s housing market is cooling, the San Gabriel Valley stands out for its continued strength. In this region east of Los Angeles, multiple offers remain common, and inventory is tight, defying expectations of a buyer’s market that dominates national headlines.

Janice Lee, a 41-year real estate veteran and luxury property director at Berkshire Hathaway HomeServices California Properties, has seen this resilience up close. Her team recently listed a home in San Marino that received 15 offers—evidence that, in certain local markets, demand is still outpacing supply. “Real estate is very locale sensitive,” Lee says. “If people listen to the news and expect a buyer’s market, they’re surprised to get outbid here.”

Geography and Value Distinction

The San Gabriel Valley includes historic areas such as Pasadena, San Marino, La Cañada, and Arcadia — communities known for the Rose Parade and landmarks like the Huntington Library. Unlike Los Angeles’s westside markets, the San Gabriel Valley offers buyers more land for their money. “For what you pay, you get much more land compared to the west side,” Lee explains. “The average home sits on 7,500 to 10,000 square feet, so you have a beautiful yard.”

Beyond larger lots, the region’s public schools are a major draw. San Marino consistently ranks as California’s top public school district, with La Cañada close behind. This reputation, combined with a multicultural food scene and historic neighborhoods, keeps families interested in putting down roots.

Interest Rates

A nationwide phenomenon drives the area’s low inventory, but it’s especially pronounced in high-demand neighborhoods like those in the San Gabriel Valley. Many homeowners are “locked in” by ultra-low mortgage rates secured during the pandemic.

“During the pandemic, people bought homes with 2.5% or 3% interest rates. Now rates are 6%—double what they were,” Lee says. “Each percentage point in interest rate is about $100,000 in purchasing power.”

This rate jump creates a barrier for homeowners who would otherwise move up. For example, a family that bought a $1.5 million home at a low rate now faces much higher monthly payments if they try to buy a $2.3 million property at today’s rates. As a result, many stay put, further limiting inventory.

“You can’t move because you can’t afford a bigger home at current rates,” Lee says. “A lot of people are stuck in the homes they bought.” Seniors looking to downsize face their own challenges, especially due to tax liabilities after decades of ownership. “When they sell, their taxes will be high because they’ve lived there so long,” Lee notes.

Today’s Market

Despite these constraints, well-located and well-priced homes still attract multiple offers. Lee’s team has adjusted by prioritizing presentation and realistic pricing. “When it’s a well-priced, nicely presented home, it goes immediately,” Lee says. Success depends on understanding the micro-markets within the Valley.

Different neighborhoods present distinct price points and demand. “A home in San Marino is priced differently from one in Temple City. But in Temple City, there are still desirable streets and school districts. Those homes move quickly, just like in San Marino.”

Not all properties move fast. Homes that are overpriced or poorly presented can linger, and buyers are more discerning about value than in the recent past. The region’s diversity means agents must know which pockets are most in demand and price accordingly.

When Deals Fall Through

While most deals close, failed transactions usually stem from inspection surprises. “A lot of the time, the inspection reveals more repairs than buyers expected,” Lee explains. Younger buyers, who often stretch financially to secure a home, may realize after purchase that renovation costs are higher than anticipated. “If you buy a property and then need to spend $500,000 to make it your dream home, that can be a deal breaker.”

This reality also affects investors and flippers. Lee warns that success in the San Gabriel Valley requires careful budgeting and understanding of local fundamentals. “If someone renovates a house in a less desirable area expecting the same price per square foot as the best parts of the city, they’ll likely be disappointed.”

A Long-Term View on Rates

Lee’s four decades in real estate give her perspective on today’s interest rates. She recalls when rates in the high single digits were considered good news. “I remember when we celebrated a 9.85% interest rate — just because it was under 10%,” she says.

This historical context leads her to believe that buyers and sellers will gradually accept current rates as the new normal. Major life changes — births, deaths, job relocations, divorces — will always drive some housing activity regardless of market cycles.

“There will always be people who need to move for life reasons,” Lee says. “That doesn’t change.” Lee encourages buyers to focus on finding the right home rather than waiting for the perfect rate. “Date the interest rate, marry the house. If you love a home, buy it and refinance later if rates drop. But don’t buy just for the rate — that’s what happened during the pandemic.”

Technology’s Role

Lee’s team uses technology to improve efficiency, recently hiring a UC graduate to manage social media and adopting AI tools to streamline operations. But she maintains that technology cannot substitute for experience and relationships. “AI can help us save time, but it can’t replace my 40 years of experience,” she says.

Her team’s success — ranking 17th out of 50,000 Berkshire Hathaway agents in North America — comes from deep community ties and serving multiple generations. She has represented some properties four times as families expand, relocate, and pass homes down.

“I’ve worked with families from the time they got married and moved into a condo, to helping their children find homes decades later,” Lee says.

What Lies Ahead

As 2026 approaches, Lee expects the San Gabriel Valley to remain resilient, especially in the most desirable neighborhoods. The combination of limited inventory, strong schools, and a gradual normalization of current interest rates should sustain buyer interest and market activity.

Her team’s recent listing of the historic Merritt Mansion in Pasadena — a 125-year-old, 17,500-square-foot property on 1.8 acres — underscores the unique blend of history, culture, and value that defines the region.

For real estate professionals watching national trends, the San Gabriel Valley demonstrates that local fundamentals matter more than broad headlines. In regions with strong schools, cultural amenities, and reasonable value, buyer demand persists even when national data suggests a slowdown.

Lee’s experience highlights the importance of understanding local nuances and adapting strategies to fit real-time market realities. The San Gabriel Valley’s continued strength shows that, in real estate, local knowledge and a long-term perspective are invaluable for navigating changing conditions.