How is the Housing Market in Pasadena, CA?

The housing market is always in flux, which is why it’s important to keep an eye on its trends. The housing market is starting to cool off, and this is reflected in Pasadena’s local market. Here are some things you should know before buying or selling Pasadena real estate.

As Pasadena is currently a seller’s market, homes are selling quickly and at a higher price. However, a slowdown is indicated in the increase of home inventory, which creates less scarcity and impacts buyers’ demand. The Pasadena housing market seems to be at its crest for sellers. For those looking to buy Pasadena real estate, now may be a good time to start looking at listings.

Different types of real estate see varied demand, as they’re designed for different types of buyers. Pasadena real estate has seen an increase in price, with the largest increases occurring for one-bedroom and two-bedroom properties, which have increased nearly 20%. However, the number of homes for sale according to bedroom count is varied, with all but one-bedroom and three-bedroom properties increasing in inventory. The general increase in inventory may be reflecting a larger trend in the number of homes sold, as sales decreased by 10.7% between May and June of 2022.

For people searching for Pasadena homes for sale, market trends for single-family homes are a bit of a mix. There are more houses on the market, meaning homebuyers will have more options when searching for a new home.

However, the sizes of single-family homes available have gotten smaller, and the price of square footage has increased. The median home size is 1,985 square feet, which is down from last year’s average. And the price per square foot is $757, which is up $46 from last year’s price per square foot. Despite this increase in cost and decrease in space, the median listing price for single-family homes in June 2022 was $1,424,000, which is down from last year’s $1,750,000.

For those searching the market for condos and townhomes, they can see some similarities and differences in trends for single-family homes. The number of homes for sale is up to 132, compared to last year’s 92. This means buyers will have more options to choose from when searching for homes.

Once again, the median home size has decreased since last year; as of June, it was 1,313 square feet. And the price per square foot is up $36, with a price of $642 per square foot. Despite this increase in median square footage cost, the median list price has decreased since last year.

As of June 2022, it was $849,950. Additionally, the median days on the market for condos and townhomes increased by seven days. This may be indicative of the general market cooling that’s occurring. Therefore, buyers and sellers alike should keep an eye on these trends throughout the rest of the year.

Although the housing density of Pasadena is lower than the state average, the vacancy rate of housing units was zero percent. There are housing deficits across the state, and Pasadena is working to pass legislation that will allow for more production. If this happens, it could create an additional 903 units over the next five years, as well as boost the construction industry by creating more jobs. People in Pasadena should pay attention to how future supply affects demand and competition and how this affects the cooling market in general.

There’s a lot happening that makes this an interesting time for sellers and buyers. The housing market is cooling off because it’s impacted by rising inflation and mortgage interest rates. Yet the market in Pasadena is still a seller’s market. This puts buyers and sellers at both an advantage and a disadvantage.

There are several ways sellers can react to their listed properties. If a seller has the time to wait and is interested in only getting a high offer for their home, then they can take their property off the market or wait until the market trends change. Those who have time to wait can decline any offer they don’t find suitable. If they’re willing to negotiate, then sellers can make a counteroffer close to their asking price. Or they may be forced to accept a lowball offer if they need to make the sale happen.

For buyers looking for Pasadena homes for sale, using the market conditions can help them make an offer in their favor. The more homes sell at a lower price, the more the market trends lean toward a buyer’s favor. However, buyers can also end up in a stalemate with a seller if they’re too bold with their offer and are unwilling to negotiate further. They may even find it difficult to buy in general due to inflation and mortgage rates.

With a comprehensive understanding of what the Pasadena housing market looks like compared to a year ago, you’re ready to make an informed decision about buying or selling your home. For help with the home buying or selling process, contact local agent Andy Hairabedian to guide you through it.