There were 88 Pasadena home sales last month (September 2015). Absorption rates continue to hover in the two month range.
Housing in California — already considered un-affordable to many — will become even less affordable over the next two years, with construction unable to keep up with demand, according to a UCLA economic forecast.
The UCLA Anderson Forecast said L.A. is only three years into a rebound that started in 2012. Home prices have since climbed 27 percent. History suggests there will be four more years of price increases and home values will go up another 35 percent before there is any sort of correction.
The reason comes down to a fundamental imbalance: there’s lots of job growth, but because of strict building and environmental regulations, there will be very little increase in the housing supply.