Pasadena Housing Market: Prices,Trends, Forecast 2024 – Norada Real Estate Investments

6 minutes, 54 seconds Read

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.


Buy/sell, rent/lease residential &
commercials real estate properties.

Pasadena, CA can be classified as a seller’s market. This classification indicates that the demand from potential buyers surpasses the available housing inventory. The city, with its allure and charm, attracts a plethora of home seekers, creating an environment where sellers hold the advantage.

Median Listing Home Price Soars

In December 2023, Pasadena, CA witnessed a robust surge in its median listing home price, reaching an impressive $1.3 million. This marked a substantial 14% year-over-year increase, reflecting the city’s enduring appeal among prospective homeowners. The median listing home price per square foot stood at a remarkable $767, underlining the premium nature of the real estate in Pasadena.

Sale-to-List Price Ratio Hits 100.06%

One striking aspect of the Pasadena housing market is the sale-to-list price ratio, which reached an impressive 100.06% in December 2023. This means that, on average, homes in Pasadena sold for approximately the asking price. The competitive nature of the market is evident, with buyers often meeting the seller’s expectations in terms of pricing.

Median Days on Market: 59 Days

The median days on market metric provides valuable insights into the pace at which homes are being bought and sold in Pasadena. In December 2023, homes spent an average of 59 days on the market. This figure is crucial for both buyers and sellers to gauge the market dynamics and make informed decisions.

Examining the trends over the past year, the median days on market have shown a slight increase compared to the previous month, while demonstrating a marginal decrease from the figures reported last year.

Why is Pasadena Housing 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.

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 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. According to Zillow, the average home value in Pasadena stands at $1,088,113, reflecting a 4.9% increase over the past year. Additionally, homes in Pasadena typically go pending within a swift 16 days, underlining the dynamic nature of this real estate landscape (Data through December 31, 2023).

Key Housing Metrics

  • For Sale Inventory (December 31, 2023): The market currently boasts a total of 211 homes available for sale, providing potential buyers with a diverse range of options.
  • New Listings (December 31, 2023): In the closing days of 2023, 68 new listings emerged, contributing to the ever-evolving Pasadena real estate landscape.
  • Median Sale to List Ratio (November 30, 2023): With a ratio of 1.013, this metric suggests a balanced market where homes are generally selling close to their listed prices.
  • Median Sale Price (November 30, 2023): The median sale price in Pasadena as of November 30, 2023, reached $1,161,250, providing a benchmark for property values.
  • Median List Price (December 31, 2023): Sellers are positioning their homes with a median list price of $1,224,167, indicating their expectations in the current market.
  • Percent of Sales Over List Price (November 30, 2023): A noteworthy 61.2% of sales in November 2023 exceeded the list price, showcasing a competitive environment where buyers are willing to pay a premium.
  • Percent of Sales Under List Price (November 30, 2023): Conversely, 29.2% of sales occurred under the list price, suggesting opportunities for buyers to find properties at a relative discount.

Will the Pasadena Housing Market Crash?

The current data doesn’t indicate an impending market crash. However, the balance between supply and demand, as reflected in the sale-to-list ratio, should be closely monitored.

Considering the competitive environment with a significant percentage of sales exceeding the list price, potential buyers may need to act decisively. Additionally, the median list price provides a reference point for negotiations.

Overall, the Pasadena housing market presents both challenges and opportunities, making it essential for buyers to stay informed and work with real estate professionals to navigate this dynamic landscape.

Pasadena Housing Market Forecast 2024
Source: Zillow

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:

Market Overview:

  • The median home value in Pasadena 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.

Investment Opportunities:

  • 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.


Sources:

  • https://www.zillow.com/home-values/47019/pasadena-ca/
  • https://www.redfin.com/city/14498/CA/Pasadena/housing-market
  • https://www.realtor.com/realestateandhomes-search/Pasadena_CA/overview                 

This post was originally published on 3rd party site mentioned on the title of this site

Similar Posts

X
0
    0
    Your Interest
    Your Interest List is emptyReturn to Buying
    ×