Pasadena Home Sales 1st Quarter 2016

If the Pasadena Home Sales were a business and had to report quarterly results, you would see a bottom line that was impressive. Who can argue with increasing increasing home prices, meaning increased homeowner equity.

The median price of a Pasadena Single Family Home was $790,000 in the first quarter 2016 compared to $760,000 in the first quarter of 2015, an increase of 4%.
Where you might begin to see some cautionary signs are when you begin to look at the parts that make up the business. Certain zip codes are performing much better than others as are the lower more affordable price points and the smaller homes.

If you were to summarize the performance in the market, I think it could all be related to one word; AFFORDABILITY.

Pasadena Home Sales

2 bedroom homes are showing the largest price increases. I think this is due to the ever increasing price of a 3 bedroom home which is becoming harder to qualify for, therefore home buyers are opting for a less expensive alternative.

So let’s break it down and see why by looking at Pasadena zip codes;

Zip Code 91107

The median price is up to $878K from $785K or 12%, by far the biggest increase we see in the first quarter, Unit sales also increased to 57 units up from 45. The biggest increase we see in this zip code and also recurring frequently is in 2 bedroom homes. The median price of a 2 bedroom home increased to $744K, up from $555.Pasadena 1Q16 Real Estate Results

Zip Code 91104

Again a nice increase in the median price of 4% to $716K, up from $687k. The Average price per square foot increased to $462, from $426, an increase of 8%. We see the 2 bedroom home increased to $600K, from $518k. Although prices increased, units were constant with 58 homes sold.

Zip Code 91105

The median price in this zip code had a huge increase in 2015 coming ni at $1,342.5 which was up from $1,175 in 2014. Unfortunately, 2016 was another story. The median price was $1,175 and down 22%, Again where we see price increases in the more affordable areas, we see price decreases when the median price exceeds $1MM. There was also a decrease i the 2 bedroom hoe from $862K in 2015 to $795K in 2016.

Zip Code 91106

Unit sales were down to 17 home sales from 23 last year during 1Q15, as was he median price. It declined to $1,100,000 from $1,127,500, but very little change. The most obvious change was that 4 bedroom homes increased to $1,890K, up from $1,548K, however there were only 4 sales this year compared to 11 last year, So the decline in home sales to me is more significant than the increase in the median price.

Zip Code 91103

There was a big drop in unit sales in 1Q16. 26 This year compared to 44 last year. Despite the 40% loss in unit sales, the median price stayed the course at $583K. We dis see the big increase in 2 bedroom homes again increasing to $461K, up from $335K. The average price per square foot also increased to $514, up 17% from $440 last Year.

Condos & Townhomes

Apparently with more homebuyers being priced out of the Single Family market, they are opting for the condo and townhome alternative. Unit sales increased to 132 units, up 13% from 1Q15, and the median price increased 3% to $535K. The average price per square foot is $445, but flat from last year.

Luxury

Unit sales went from 19 last year to 18 this year. The median price decreased to $2,060K from $2,488K, a decrease of 17%. The Luxury Threshold, where the Luxury market begins started at $1,800M last year, but dropped $100K to $1,700M this year.

To see more details and analysis of the Pasadena Residential Real Estate market, download our free report below.