The Truth about Pasadena Real Estate Market

Wondering what is going on with the Pasadena real estate market? There are some interesting trends surfacing and opportunities are plentiful.

At the beginning of every month, we make a point to analyze the closed and pending sales data. We like to compare it to the month previous and also compare the entire quarter to the same quarter the year before. While we are deep in the trenches daily (yes, you know that our job requires our attention almost 24/7), we like to compare how we feel things are going in the real estate market to the historical data. This allows us to uncover trends and communicate these trends, truths, and opportunities to our clients, friends, and preferred business partners.

So, where is the market now that we just closed out the first quarter of 2012? One of the trends that we are experiencing right now is a lack of inventory. In fact, March 2012 single family home inventory in Pasadena is down 40% compared to the same time last year. This significant decrease, coupled with an increase in pending sales (Feb 2012 to March 2012) of over 47%, is leaving many potential buyers frustrated with the condition of the market. Buyers know that right now is the window to purchase a home, and with historically low interest rates, reasonable sellers, and lower home prices, they want to act now.

Thankfully, we are seeing the expected increase month-over-month (since the slow holiday season) in pending sales and in sold single family homes. In fact, the pending home sales for March 2012 is the highest it has been (104 homes) since January 2011. So, sales are going in the right direction - exactly where we expect it go.

Although the median price is down 12% first quarter of 2012 compared to the same time last year, there are some bright spots when you are looking at actually pricing. The segment of 3 bedroom homes is the only segment that has seen an increase in average price. Though this group of homes experienced fewer sales, these homes are flying off the market - perhaps contributing to the price increase. Additionally, the only group over homes which grew in number of sales first quarter of 2012 compared to the same time last year is the 5+ bedroom segment. And guess what? This segment of homes had an over $400,000 decrease in average sales price, perhaps due to the jumbo loan market and growing number of financially stretched homeowners.  But whatever the reason, there are currently some terrific deals in the luxury home market right now.

The fact of the matter is that homes with integrity, that have been loved, are located in desirable neighborhoods and that meet many of the buyers demanding desires, are still garnering great prices. So you see, to sum up the market right now, we know it is an excellent time to sell (low inventory, large buyer pool, cheap money) AND a great time to buy (great mortgage rates, lower homes prices, phenomenal area values).

QUICK STATS for March 2012 Pasadena single family sales: 

• 231 homes for sale 
• 104 pending homes 
• 69 closed sales 
• $358.00 average price per square foot 
• $790,000 average sales price
• $527,500 median sales price 
• 82 average days on market 
• 3.3 months of inventory 
• 94% original to final sales price 

We invite you to call us or send us your questions or feedback. It is important that we all stay informed, since for many of us our home is not only our largest asset, but the place where we put down roots and create memories for our families. If you have dreamt about another home, but thought that you would wade this market out, you will be missing a terrific opportunity. There is a sale going on right now, a home sale, and who better to take advantage of it than you?

Cynthia

Sales data courtesy of TrendVision.