For the first time ever, the median price of homes sold in Pasadena has exceeded $1 million, according to 2020/2021 property tax data provided to the city by a consultant and published last week.
Sale prices have risen as the number of sales declined significantly due to COVID-19 stay-at-home orders.
The smaller inventory and lower interest rates from January through September drove the median sale price of a detached single-family residential home in Pasadena up to $1,050,000, a $93,000 (9.7 percent) increase in median sale price from 2019.
“It doesn’t surprise me, because supply continues to be limited relative to demand,” said Pasadena realtor Bill Podley of deasy penner podley. And that will continue “until more homeowners decide to sell or relocate,” Podley said.
“I’m really addressing this more from the more senior population because we’re all aware — and my understanding is this is true over much of the United States — that people just aren’t selling like they used to,” Podley said.
“It used to be people move about every seven years, and now it’s closer to every 20,” he said.
According to the California Association of Realtors, all major regions declined in the number of sales with Southern California dropping the most at -12.2 percent, while the Central Valley had the smallest decline at -1.5 percent.
Median prices in the Central Valley and in Southern California increased by 7.4 percent and 3.3 percent, respectively, based on pent up demand. Other areas reflected similar patterns.
In October, Pasadena Now reported significant jumps in home prices outpacing price increases in the county in three of the city’s six zip codes. At that time, only two of the city’s six area codes had median home prices below $1 million, 91103, which includes Northwest Pasadena, and 91101.
The city’s taxable property value increased by 6 percent with a total assessed value increase of approximately $2 billion.
According to a property tax summary provided by city consultants HdL Coren & Cone, the largest assessed value increases were caused by a combination of recent sales and new developments.
The largest increase occurred on a commercial parcel at 135 N. Los Robles Ave., which was reassessed after its 2018 purchase from the Successor Agency; resulting in an increase of $73.4 million.
The 2018 sale of two parcels at 251 and 225 S. Lake Ave., to CVFl-S Lake Avenue LP, added $96.7 million in value.
New improvements on a multifamily residential parcel owned by GDCV Pasadena 201 LLC (75 W. Walnut St.) added $50.4 million in value.
“Prices have continued to rise in response to lower inventory and lower interest rates,” according to the summary provided by a newsletter produced by HDL Companies, which provides auditing, operations, and revenue solutions for more than 500 government agencies in 11 states.