Pasadena, California, with its stunning architecture, vibrant culture, and proximity to the bustling city of Los Angeles, has long been a desirable place to call home. In this blog post, we'll delve into the current state of the Pasadena housing market, exploring key figures and trends that potential buyers and sellers should be aware of.
Is Pasadena a Seller's Housing Market?
Nestled in the heart of Southern California, Pasadena boasts a charming blend of historic architecture, cultural attractions, and natural beauty. As the summer sun shines upon this vibrant city, let's take a closer look at the Pasadena housing market's performance.
The following Pasadena housing market trends are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.
The housing market in Pasadena, CA is currently favoring sellers as of August 2023. This indicates that the demand from buyers exceeds the available housing inventory.
Pasadena, CA Housing Market Statistics
In August 2023, the median listing home price in Pasadena, CA was $1.2M, reflecting an 8.8% year-over-year increase. The median listing home price per square foot stood at $746, and the median home sold price was $1.1M.
Sale-to-list price ratio: 101.84%
Homes in Pasadena, CA were typically sold for 1.84% above asking price on average in August 2023.
Median days on market: 40 Days
On average, homes in Pasadena, CA sell after 40 days on the market. The trend for median days on market has been relatively steady, with a slight increase compared to the previous year.
Pasadena Neighborhoods and Prices
Pasadena comprises 37 neighborhoods, each with its own distinct characteristics. The Linda Vista neighborhood stands out as the most expensive, with a median listing home price of $2.9M. On the other hand, Catalina Villas is the most affordable neighborhood, with a median listing home price of $688K.
Why is Pasadena So Expensive?
The high housing prices in Pasadena can be attributed to various factors such as its desirable location, a strong economy, cultural amenities, educational institutions, and a competitive real estate market. These elements combine to drive up demand and subsequently increase home prices.
Is it Expensive to Live in Pasadena?
Living in Pasadena can be relatively expensive due to the higher housing costs, but it also offers a range of amenities, cultural experiences, and a high quality of life. The decision regarding affordability ultimately depends on an individual's financial situation and priorities.
Pasadena Housing Market Forecast 2023-2024
As we delve more into the housing market of Pasadena, CA, it becomes essential to examine the current data and trends to forecast what the future holds. Based on the available information, including the average home value, value change, sale-to-list ratio, and days to pending, we can gain insights into what may lie ahead for the Pasadena housing market in the coming year.
Zillow's insights into the Pasadena housing market provide valuable data for understanding the trends and dynamics. As of August 31, 2023, the average home value in Pasadena is $1,079,655, indicating a 1.6% decrease over the past year.
Market Trends and Metrics:
- Average Home Value: $1,079,655 (as of August 31, 2023)
- Median Sale-to-List Ratio (July 31, 2023): 1.024
- Percent of Sales Over List Price (July 31, 2023): 61.6%
- Percent of Sales Under List Price (July 31, 2023): 29.8%
- Median Days to Pending (August 31, 2023): 14 days
Please note: All data mentioned is as of August 31, 2023.
Analysis of Home Prices:
Considering the 1.6% decrease in the average home value over the past year, it's important to carefully monitor the market for further changes. While homes are currently going pending in around 14 days, the median sale-to-list ratio is encouraging, standing at 1.024, suggesting good value for sellers.
Future Housing Market Outlook:
Whether home prices will drop in Pasadena, CA is a complex question influenced by numerous factors including economic conditions, housing supply, and buyer demand. It's crucial to stay updated with market trends, economic indicators, and expert analyses for an accurate forecast. Consulting real estate professionals and industry experts can provide valuable insights into the future direction of the housing market in Pasadena.
Forecast for Buyers
For buyers in the Pasadena housing market, the current conditions present both opportunities and challenges. The average home value in Pasadena, CA has experienced a 1.6% decrease over the past year, providing potential for cost savings.
However, it's important for buyers to act swiftly as homes are going pending in around 14 days, indicating a competitive market. Additionally, a median sale-to-list ratio of 1.024 suggests that offers close to or above the listing price may be necessary to secure a desired property.
Buyers should carefully assess their budgets, engage with a real estate agent for up-to-date market insights, and be prepared to make informed and timely offers to navigate this active market successfully.
Forecast for Sellers
For sellers, the Pasadena housing market continues to favor your position. Despite a slight 1.6% decrease in the average home value over the past year, the median sale-to-list ratio of 1.024 signifies that sellers are often obtaining offers close to their listing prices.
The market also indicates that 61.6% of sales are occurring over the list price, demonstrating strong demand. Homes are typically going pending in around 14 days, underlining a sense of urgency among potential buyers.
To optimize the selling process, consider working with a knowledgeable real estate agent who can help you position your property competitively, strategize on pricing, and navigate negotiations to secure the best possible deal in this dynamic market.
Pasadena Real Estate Investing Overview
Pasadena is a vibrant and affluent city located in Los Angeles County, California. Its proximity to Los Angeles, beautiful architecture, and scenic landscapes make it an attractive location for real estate investors. Here's an overview of the Pasadena real estate market and investment opportunities for interested investors:
- The median home value in Pasadena is $1,079,655, and it has been steadily increasing over the past ten years.
- The housing market in Pasadena is competitive, with a high demand for homes and a low inventory.
- The city has a diverse economy with strong job growth, which is a good sign for real estate investors.
- Single-family homes are a popular investment option in Pasadena, especially for those interested in long-term rentals.
- Multi-family properties, such as duplexes, triplexes, and apartment buildings, offer investors the opportunity to generate income from multiple rental units.
- Condos and townhouses are also good options for investors, especially for those interested in short-term rentals or Airbnb-style rentals.
- Fix-and-flip properties can be profitable for investors who have the skills and resources to renovate homes and sell them for a profit.
Rental Property Investment in Pasadena:
- Investing in a rental property in Pasadena can provide a smart move for real estate investors.
- Rental property can be a profitable and rewarding investment strategy for real estate investors who are willing to do their due diligence and carefully manage their properties.
- Pasadena has a growing population and strong job market, leading to steady demand for rental properties.
- The high home prices in Pasadena can make it difficult for many people to afford to buy a home, driving up demand for rental properties.
- Investors can benefit from the potential for rental income to provide a steady stream of passive income.
- Rental property investments can offer tax benefits such as deductions for property expenses, depreciation, and mortgage interest.
- Factors such as location, property condition, rental rates, and local regulations should be considered when investing in a rental property in Pasadena.
- Working with a local real estate agent or property management company can be helpful in identifying desirable neighborhoods and properties, as well as navigating local regulations and rental market trends.
Considerations for Investors:
- Pasadena's real estate market is competitive, so investors need to act quickly to secure properties.
- Investors should be aware of the local zoning laws and regulations before making any investment decisions.
- It's important to work with a local real estate agent who has knowledge and experience in the Pasadena market.
- Financing options, such as traditional mortgages or hard money loans, should be considered based on the investment strategy and goals.
Hence, the Pasadena real estate market offers a variety of investment opportunities for investors looking to generate income through rental properties or by flipping homes. With a strong local economy, attractive location, and high demand for housing, Pasadena is a market worth considering for real estate investment.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.