Pasadena Home Prices Trend Higher

Pasadena home buyers continue to express optimism in our local real estate market as evidenced by the housing statistics for the month of April. While “SALES” and “PENDED” Single Family units were basically flat in April ’10 vs April ’09, there were other signs of encouraging news. The median price increased to $710,000 last month compared to only $550,000 in April ’09 (+29%) and was also up from the most recent March number of $629,000 (+13%). Now median prices don’t portend to tell the whole story, but they are a good barometer of trends happening in our market.

Prices Per Square Foot Increasing

A good check and balance is to also see what is happening with prices on a square foot basis. There is more good news here as the Price per Square Foot increased to $426 up from the March number of $379 and well above the April ’09 figure of $384 per square foot. The mix of property being sold also affects the Price per Square Foot. Last year we were seeing a higher number of homes sold in the lower price ranges as many of the foreclosures and bank owned property entered the market below the $500,000 price point. In April 2009 there were 25 recorded home sales at a price of $500,000 or below compared to last month when there were only 17 sales.

Also this year, sales of higher priced homes are beginning to reappear. Qualifying restrictions for a jumbo mortgage has also become easier than it was last year evidenced by the number of homes sold over $900,000. In April ’09 only 11 homes sold in this category compared to 21 last month, an increase of 90%.

Impact of Home Buying Incentives

As we approach the end of tax incentives which are supposedly designed to get people off of the fence and into a house, what will happen once they expire? I don’t believe we will see much of an impact due to the price of Pasadena real estate. Incentives make a difference when you purchase a home for $100,000 as you can in many parts of the country. With our median price of over $700,000 and a return to higher priced homes, incentives are a marginal part of a home buyers decision. The main key to continuing prosperity will be the price of money. In the last few days, interest rates on 30 year fixed rate conforming loans have tested 50 year lows. Interest rates which influence affordability and how much home someone can buy will be the key to continued improvement.

Price per Square Ft Pasadena

Single Family - Average Price / Sq Ft

Single Family, sold and pended

Single Family - For Sale, Sold & Pended

Median Price of Pasadena Single Family Home

Pasadena Single Family Home Median Prices

About Doug Willis

I see so many properties listed for sale that have absolutely no creativity or marketing plan. They are compromised by a poor description, terrible photography and a real estate agent that doesn't understand how to sell a property. If the most important issue to you is getting your home sold, allow me the opportunity to meet with you and show you the results a real marketing program will produce.

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