Where are Pasadena Condo & Townhome Prices Headed?

If your Pasadena home search has been somewhat frustrating trying to find that nice 3 bed, 2 bath traditional for under $600,000, you may want to take a second look at the condo and townhome market. These two markets although similar in

The sales cycle has been harder to predict than in Single Family homes

nature are also marked by sharp contrasts. According to the Pasadena home search, there are about 230 condominium properties for sale in the city. What is not being reported is all of the recent new construction properties that are for sale, but are not listed in the MLS.

There is a very good reason for this. The developers do not want you to see how many of these units are currently unsold. If you knew you might be more aggressive on your offering price. Many of these new units now for sale were being purchased and planned several years ago when the market was red hot and appeared there was no end in sight. The other misfortune assumed that Pasadena had a voracious appetite for high end units. With most of this development happening in the downtown and in the high retail areas, land was selling at a premium. The assumption was people would pay more to live in areas with so many walkable amenities.

Current Market Conditions

These two graphs present different stories. The reason being the top chart is based on actual closed sales and the bottom is based on what is currently “for sale”. The median price of units sold in the last couple of

Increasing Inventory Means Lower Prices

months have ranged form $425.0 to $450.0. Whereas the bottom chart indicated that the median price has fallen about $45,000 since January 1, 2010 and currently resides around $500.0. On the flip side inventory has also increased around 10% from the first of the year also.
So what does this mean?
What this really indicates is some softness in the upper end condo market. It could also be evidence of trade up buyers opting for single family homes as opposed to a different lifestyle associated with communal living.

Price Direction

Unlike the current activity in the Single Family market, we don’t see multiple bids on condos and townhomes, nor do we see evidence of closing prices above current asking prices. Home sellers in this category are going to have to remain negotiable for the foreseeable future and developers may resort to interest rate buy downs in lieu of reduced prices.

Delacey Place, Pasadena’s New Address of Elegance

Delacey Place is Pasadena's New Luxury Address.

Delacey Place is Pasadena's New Luxury Address.

Located just south of Old Town is Pasadena’s newest condominium development, Delacey Place. Delacey follows the construction trend of “mixed use” which combines commercial / retail office space on the first level followed by residential units on the upper floors. This concept was recently incorporated into Pasadena Place, Lake @ Walnut, The Dalton and the soon to be completed Raymond Renaissance.

Delacey Place has one very distinguishing characteristic. The residential units are high end, very high end. According to the i-Tech MLS, 5 of the 30 units in the project are currently listed for sale or are in escrow. Prices range from $899,000 for a 3 bed/3 bath with 1665 sq feet to 3/3 with 2746 square feet, showing “back up” status at $2,099,000. HOA fees start in the range of $600/month and residents have an on site gym along with a pool. As you walk into the lobby, stained glass artwork is illuminated by translucent glass allowing sunshine to brighten the lobby area. I very much admire the innovation and unique features incorporated into this design.

I had the opportunity to tour the project at a recent open house. The residential unit I toured included exquisitely appointed with hardwood floors/ceramic & porcelain European tile, high end fully featured gourmet kitchens with stainless steel kitchen appliances, surround sound systems, central vacuum, whirlpool tubs, steam units in master baths, solid doors and much, much more. Subterranean parking also is available and some of the units come with private garages.

Pasadena Place

Located at the corner of Pasadena Avenue and Green Street is the Pasadena Place Condominiums. This is a 5 story complex consisting of 42 units with underground parking. On the street level you will find a combination of retail and office space with a common area consisting of a front and back entrance.

Pasadena Place Condominiums

Pasadena Place Condominiums

Inside the units offer stainless steel kitchen appliances, Caesarstone counter tops, ceramic tile and glass, stacked washer and dryer, and secure parking. The units also feature a small exercise room and a rooftop patio. Most of the units appear to be 2 bedroom and 2 bath and in the range of 1100 square feet. HOA dues for an average size unit are in the low $300’s per month.

This is one of the newer developments located in the heart of Old Town and you can see from the enclosed chart, many things are just a short walk away

The Dalton Showcases City Lifestyle in Pasadena

Pasadena City living just got a lot more exciting with the introduction of The Dalton. A new mixed use condominium community featuring 55 residential units along with 7500 square feet of commercial / retail space. Mixed use has been the trend as developers try to lure more upwardly mobile young professional’s who prefer to have many of their frequented places of business within walking distance and who also may use the train to commute to work.

The Dalton is not your mother’s condominium complex. Its polished concrete floors and Euro style kitchens are anything but traditional. Floor plans include lofts, 1 and 2 bedrooms and start around $379,000 and go up to $749,000. Kitchens include stainless steel dishwasher, gas range and microwave. Cabinet colors for the most part are white gloss although some preselected units do feature a dark brown option. HOA fees are slightly higher than some of the recently constructed units in the area. An 1130 sq ft unit had monthly fees of $381, however they do include water, trash, gas and of course common area maintenance.

City Convenience

A walk score takes the location of the property and compares it to other attractions within close proximity. The higher the score, the more walkable amenities. As you can see, The Dalton is centrally located and enjoys a Pasadena walk score of 94, very important based upon how the property is being marketed.