National prices and trends are often a very different story in Southern California than across much of the nation. As national news reports have clambered to report the steady decrease in gas prices nationwide since the end of summer, for example, gas prices in California have begun to climb again.
In the first few stirrings of housing price drops nationwide last year, Southern California prices remained steady, especially in Pasadena.
That has officially changed, as Pasadena has now seen a steady downturn in housing prices since 2021.
While the numbers differ among reporting agencies, the message is essentially the same. And while the exact numbers tend to change, depending on the reporting agency, no data is reporting any substantial increases in home prices.
The DQNews report for August 2022 cites 139 homes sold in Pasadena in August with a median price of $990,00, compared to a 2021 median price of 1,065,000, for a substantial drop of 7%.
In August 2022, according to Redfin, Pasadena home prices were down 5.4% compared to last year, selling for a median price of $1.0M. On average, the site reported, homes in Pasadena sold after 34 days on the market compared to 31 days last year. There were 120 homes sold in August this year, down from 125 last year, said the real estate website.
Meanwhile, the August 2022 California Association of Realtors (CAR) report—which is the latest report available for 2022 housing numbers—shows a dramatic 19.6% drop in home prices to date this year, with an Unsold Inventory Index of three months, with homes on the market for an average of 18 days.
And, according to Norada Real Estate Investments, the California median home price is not rising by double-digits anymore.
“That trend is over,” said their recent report. “After a two-year housing boom, the housing market in Southern California is finally moderating,” the site noted.
In August 2022, the median house price in Southern California declined 1.6% from July, Norada noted, adding that the median was 4.6 percent more than it was a year ago, thanks to a brief decrease in interest rates in July and mid of August.
This year, mortgage rates have risen from the low 3 percent and topped 6%. Rising mortgage rates made houses even less affordable for many people in Southern California, said the Norada report.
The riding mortgage rate has significantly increased the monthly cost of a property and diminished the loan amounts available to borrowers. As fewer individuals are house hunting, houses are remaining on the market for longer, offering the remaining buyers greater alternatives, said the Norada report.
But according to Movoto, homes in Pasadena were selling for a median price of $1,100,000 in August 2022. Movoto also reported that on average, homes in Pasadena sold after 43 days on the market compared to 74 days last year.
313 homes were sold in Pasadena, CA in August 2022, up from 35 last year, according to Movoto.
Every source, however, tends to agree that the Pasadena housing ride may be winding down dramatically, especially as the Federal government battles inflation with increased interest rates, with each percentage point representing thousands of dollars a month more in mortgage payments.
