Pasadena Real Estate Market Feels January Slump

The optimism that precedes a new year was short lived at least where Pasadena real estate is concerned. Let’s face it, when it comes to real estate activity, January is, well January. This time of year is supposed to be unexciting and uneventful. From that standpoint the month certainly lived up to its expectations.

I am beginning to read some articles about other real estate markets across the country, showing some signs of life. In fact a Seattle Broker created quite a stir last week when she announced the end of declining values in her market. She observed that properties priced 20% under their 2007 summer peak were all selling. However, if you look at the peak here in Pasadena, it occurred in December ’07 at $710,750. A 20% decline would have been $568,600, which would have occurred around August last year. Our prices have fallen every month since then to a current median price in January 2009 of $429,000, or 40% off of our December ’07 high.

Pasadena Home Prices

Explaining the events in January can be summed up in a couple of points:

  1. The number of single family home sales were 30 units compared with 28 units for condo/townhomes. Of the 57 housing units that were sold, 75% of them were sold below $600,000
  2. Previously single family units had outpaced condo/townhomes by about a 2:1 ratio. This month however the ratio of single family to condo/townhome was almost 1:1. The median price of a condo was $415,000 which pulled down the overall median price.

Pasadena Outlook

The median prices of homes in escrow is indicating a trend still towards lower prices. The month of February is probably less exciting than January; however with a median price of $429,000 we are very close to reaching the bottom ourselves.

2 thoughts on “Pasadena Real Estate Market Feels January Slump”

  1. “The optimism that precedes a new year was short lived at least where Pasadena real estate is concerned.”

    It’s still looking optimistic for home buyers. Prices are trending down, as you mentioned, which might not be good for home sellers but buyers are optimistic this mean they might actually be able to afford a home they’d enjoy living in.

  2. Tim,

    “One mans’s loss is another man’s gain”.

    I was actually referring to the number of home sales we had in January. When I took a look in late December it appeared that there would be close to 100 unit sales. I was surprised there were close to 50.

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