It's been an interesting real estate market in Pasadena over the last few months. Each time I turn on the news, which is not often, I hear horror stories of people losing jobs and homes. I try not to watch TV due to all the negativity and fear that is communicated on a daily basis.
Yes... there are a lot of people out of work. And, yes... there are many Pasadena homeowners struggling to keep their homes.
Other homeowners have decided to move on and try to negotiate a short sale with the bank to avoid foreclosure proceedings. Popularity of short sales in Pasadena has grown because, in some instances, sellers are no longer liable for paying taxes on the difference between the amount owed on the loan and the short sale price.
READ MORE: Understanding Short Sales
California Association of Realtors's Housing Market 2008-2009 Report states that 22.2% of California home sellers sold their home at a loss in 2008!
The last couple of weeks have been extremely busy for my real estate business. With all the negativity about the housing market, the opportunities for first time home buyers in Pasadena are tremendous. And, the potential home buyers are embracing the idea of finally being able to afford their first home in Pasadena.
Lower home prices, more inventory including short sales and foreclosures, $8,000 tax credit, an additional $100 million new construction tax credit and incredible FHA mortgage rates and low downpayment created a perfect storm for first time home buyers in Pasadena.
Read More: Take advantage of the $8,000 tax credit
Considering new construction? Don't miss $100 million tax credit
Getting back to Pasadena real estate statistics and trends for the first couple of months of 2009:
Inventory of Pasadena homes each month for both January and February almost doubled from December of 2008. More homes are available for sale and more homes are selling. February 2009 ended the month with 37 Pasadena homes sold and 57 homes under contract. This is very much in line with what I've been seeing with my clients. A lot of offers are being placed on homes and once again we are seeing multiple offers in homes under $500,000. It's also interesting to note that single family residences (SFR) in Pasadena sold a bit over 97% of asking price.
The number of available Pasadena condos for sale doubled as well from the end of 2008. A huge increase in the number of Pasadena condos under contract from last year was seen in the month of February. This doesn't surprise me since condos have experienced a more significant price drop. I was able to help my buyers purchase a condo last month in the South Lake Avenue district just steps from Macy's for only $249,500. And the price included a seller concession of an additional $7,500 towards closing costs. Quite frankly, this type of purchase was impossible only a few months ago.
Detailed analysis for Pasadena's housing market trends for December 2008 through February 2009:
| Single Family Residence |
Dec-08 | Jan-09 | Feb-09 |
| New Listings |
46 | 81 | 86 |
| Total Listings |
250 | 239 | 305 |
| Sales Pending |
40 | 31 | 57 |
| Homes Sold | 69 | 28 | 37 |
| Listings Expired |
83 | 48 | 51 |
| Average Days on the Market |
102 | 130 | 120 |
| Average Price Per Sq. Ft. |
$373 | $333 | $348 |
| Average Selling Price |
$760,146 | $548,981 | $548,151 |
| Median Selling Price |
$560,000 | $505,000 | $470,000 |
| Absorption Rate (# of weeks to sell current inventory at present rate of sales) |
15.7 | 37.0 | 35.7 |
| Condos | Dec-08 | Jan-09 | Feb-09 |
| New Listings |
26 | 44 | 46 |
| Total Listings |
158 | 183 | 205 |
| Sales Pending |
22 | 2 | 29 |
| Homes Sold | 19 | 5 | 13 |
| Listings Expired |
29 | 24 | 19 |
| Average Days on the Market |
60 | 113 | 177 |
| Average Price Per Sq. Ft. |
$355 | $379 | $325 |
| Average Selling Price |
$410,363 | $427,950 | $342,577 |
| Median Selling Price |
$380,000 | $207,450 | $337,000 |
| Absorption Rate (# of weeks to sell current inventory at present rate of sales) |
36.0 | 158.6 | 68.3 |
| Townhomes | Dec-08 | Jan-09 | Feb-09 |
| New Listings |
20 | 8 | 22 |
| Total Listings |
76 | 67 | 83 |
| Sales Pending |
13 | 6 | 17 |
| Homes Sold | 14 | 11 | 5 |
| Listings Expired |
26 | 8 | 17 |
| Average Days on the Market |
116 | 115 | 135 |
| Average Price Per Sq. Ft. |
$351 | $349 | $342 |
| Average Selling Price |
$ 540,214 |
$ 436,991 |
$455,200 |
| Median Selling Price |
$ 465,000 |
$ 462,500 |
$375,000 |
| Absorption Rate (# of weeks to sell current inventory at present rate of sales) |
23.5 | 26.4 | 71.9 |
Data compiled from PFAR (Pasadena Foothill Association Multiple Listing Service)
Read More: Pasadena City Guide
A few quick facts as we look back at Pasadena real estate market's performance in 2007 and compare to 2008:
- 2008 ended with 657 Pasadena homes (single family) sold compared to 811 homes sold in 2007, a 19% decrease in sold inventory.
- Price per square foot for Pasadena homes (single family residence) dropped from $489 in 2007 to $428 in 2008.
- Average sales price for Pasadena homes in 2007 was $959,394 compared to the average sales price of Pasadena homes in 2008 of 851,702 - a drop of 11.2%
- Pasadena home prices declined to the 2005 pricing levels with the peak for property prices in Pasadena California hitting in 2007.
For a complete review of Pasadena real estate market statistics over the last five years, please visit Pasadena Real Estate Housing Analysis - Five Years in Review.
Read More: Pasadena Real Estate Outlook for 2009 This post also provides a basic understanding of the Mark to Market rule which partially led to our current financial crisis.
If you are a buyer looking to buy a home or a condo in Pasadena California, take a look at the available listings below.
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PASADENA CA HOMES FOR SALE (Single Family Residences - SFR)
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PASADENA CONDOS AND TOWNHOMES FOR SALE
Check back next month for our Pasadena housing report analysis and statistics. In the meantime, please do not hesitate to call Irina Netchaev & Associates, your Pasadena Realtors with specific questions on Pasadena property values or if you would like to schedule a private consultation to sell your Pasadena home.
