Every month we recap the housing statistics in the Pasadena area and provide an analysis of what is happening with respect to home values and how they correspond with the overall real estate market. On a macro level, the Pasadena Housing Market appears to be holding up pretty well compared to other parts of California. Each month the median price of a Single Family Residence continues to increase and the number of units that are sold continue to decrease.
Sales for the third quarter continue to support this rationale:
However, if we begin to break it down by sales price and by geographical area, things aren't quite as rosy as they appear. Since Pasadena covers such a wide socio economic area and offers many different types of housing, can house prices still be increasing when there are fewer of them being sold?
Of the four area's of the City, home prices south of the 210 frwy seem to be holding up better than the ones to the north. The graph below shows that the Northwest and Northeast regions have declined considerably over the same period last year.
There still seems to be a market for million dollar homes in this area, however there were only 6 recorded sales of homes under $699,000 this year compared to 29 last year. That has summed up the housing market in 2007. Homes less than $650,000 continue to sit unsold. There just doesn't seem to be any buyers in this market. Homes in this area are staying on the market well over 100 days. The median price in this area last year was $610,000, and since the market in has shifted to primarily million dollar homes, the median price has become an insignificant measurement.
An article recently appeared at the L.A. Land Blog in which Peter Viles ask his readers if they thought Los Angeles would be immune to a rise in foreclosure activity? In zip code 91103, there were eleven Notice's of Default filed in the month of September. The highest level of any Pasadena zip code.
Currently indicating about a 1% decrease as the median price has gone from $725,000 last year to $717,500 this year. The decrease is attributable to homes from the $500.0 to $800.0 price range. 70 units were sold last year compared to 46 this year.
Showing a healthy increase from $882,500 last year to $977,000 this year, home sellers in this quadrant have still been blessed with rising values. The important thing to note about the Southwest area is that there is also more of a homogeneity of home values in this area, where as the other three areas have a broader value range.
Only region to show an increase in the number of homes sold. Also the median price increased from $835,000 to $897,500, about 7.5%.
As of today 385 Single Family Homes are for sale and 67 in escrow totaling 452 units. With only 42 homes sold in September, there is almost an 11 month supply. As we approach the end of the year it is hard to imagine things getting better anytime soon. There is no urgency in the market. Home buyers are very content to wait.
So, back to the question, "Are home values going up in Pasadena?" The unequivocal answer is "it depends". For the latest information on the Pasadena Housing Market visit up2date