Each month we analyze the previous month’s MLS data. We love crunching the numbers. Here’s the update for the Pasadena real estate market October 2019:
Selling prices ranged from $588,000 for a two bedroom, one bath, 650 square foot home on Howard St. to $6,400,000 for a seven bedroom, seven bath, 7,774 square foot estate at 430 S. San Rafael Ave. Last month seventy-eight Pasadena homes closed escrow. Average days on market this month was fifty-one.
The median price of $1,185,000 reflects that half the Pasadena homes sold for more and half sold for less. The median is more indicative of market conditions than the average selling price. The average can be skewed by a relatively small share of upper or lower end transactions. Thirty-two of these Pasadena homes sold for over asking price, thirty-five sold for less and eleven at asking price. Nineteen of these Pasadena listings had a price reduction prior to selling and two had a price increase. The median selling price jumped almost $100k from last month and the average selling price climbed as well.
The absorption rate of just under 2% indicates a very strong buyer’s market and a lack of Pasadena real estate listings. Interest rates are low and first time buyers are more motivated than ever. In talking with potential move up buyers they are concerned about higher taxes if moving to a more expensive home. The tax cut limiting the deduction for property taxes to $10,000 has really impacted the Pasadena real estate market.
Inventory typically falls this time of year, thus the low absorption rate is not surprising. The worst thing a home seller can do is to take their home off the market for the holidays. If you are thinking of selling your Pasadena home, I suggest getting it on the market before Thanksgiving.