If you’ve had a sense lately that real estate prices in Pasadena—already some of the highest in Southern California—have risen, you’re right. The price of the single-family homes in Pasadena has steadily marched upwards since January by as much as 30% on average, and across all price points.
“20% to 25% is probably more realistic with many homes,” said long-time local Realtor Bill Podley, a partner at Deasy Penner Podley, “depending on where they are [located]. But very few homes sit on the market. Most homes sell within seven to 10 days.”
According to InfoSparks Market Statistics, a market analysis product published by the California Regional Multiple Listing Service, the median sales price of all single family homes in Pasadena appeared to jump 37% in year’s first six months:
- Jan ’21 $929,000
- April ’21 $965,000
- May ’21 $1,275,500
The reason for the jump is simple economics, say some Pasadena realtors.
“Lower-priced homes have gone up,” says Realtor Todd Hays, “and lower-sized homes have gone up more, while the bigger houses and more expensive houses have gone up less.”
Hays said the price of a traditional starter home, which is more sought after, has gone up a greater percentage than on houses in the higher luxury categories.
“That $5 million home might not have gone up as much, because fewer people might be looking for a multi-million dollar house as opposed to an $800,000 or $900,000 house. So that lower priced starter home has seen a greater, more dramatic rise in the last six months, but at all price points have gone up.”
But Podley said he’s also seen significant price increases on some $1 million-plus properties, too.
“I’ve seen price jumps of 20 and 30% over what someone might have expected to receive, had they listed their home in December and had a closed escrow in early January,” Podley said.
Podley cited an example in which he told a seller in January that his home should list at $1,098,000. The property was listed two months later at $1,198, 000, and eventually sold for roughly $237,000 more than the list price.
“It’s supply and demand,” he said. “Buyers are pushing the prices up — especially in that very sensitive price range of $900,000 to let’s say a $1.4 or $1.5 million. So many people are wanting to buy in that price range. And what was $1 million in December is now a $1.2 or $1.25.”
Hays also observed, as have many others on both sides of the local estate equation, that the lack of available housing has driven the skyrocketing prices.
“It absolutely has,” he said. “And it couldn’t shout more loudly for the need to build more housing. We just need more housing, period — obviously in the more affordable, lower pricing. Market rate will sell, but quite frankly, what we need more of is something that might be in the $700,000 to $800,000 range, or even lower than that. But good luck with that.”