Let’s take a look at the Pasadena housing market for July 2021:
Last month, Pasadena’s housing market remained active. Eighty-seven homes sold in total. However, this number fell short of June’s sales. Likely, limited listing inventory caused the decline. Impressively, fifty-eight homes fetched prices above their asking value. Meanwhile, eight sold exactly at the asking price. In contrast, twenty-one closed below their listed price. Additionally, ten Pasadena homes required price reductions before selling. Consequently, competition stayed fierce for desirable properties. As a result, most homes attracted strong offers. Nevertheless, some listings needed adjustments to finalize sales. Therefore, the market continues to favor sellers. In summary, robust demand drives Pasadena’s dynamic real estate scene despite tighter inventory.
The least expensive home sold was a two-bedroom, one-bathroom, 695-square-foot home located at 292 Lola Ave., which sold for $660,000.
One of the most expensive homes sold was a five-bedroom, seven-bathroom, 6,027 square-foot home located at 155 S. San Rafael Ave. for $6,850,000, which was the asking price.
In real estate, the absorption rate measures how quickly homes are selling in a given market over a specific period.
Expressed as a percentage or the number of months it would take to sell all current listings, it reflects the balance between supply and demand. A low absorption rate indicates a seller’s market, where homes sell rapidly due to high buyer demand and limited inventory. Conversely, a high absorption rate suggests a buyer’s market, with more homes available than buyers, leading to longer selling times. For example, if a market has 100 homes listed and 20 sell per month, the absorption rate is 5 months, meaning it would take 5 months to clear the inventory at the current sales pace. Real estate professionals use this metric to gauge market conditions, guide pricing strategies, and advise clients on whether it’s a favorable time to buy or sell. Factors like seasonal trends, economic conditions, and local demand influence the absorption rate, making it a dynamic indicator of market health.
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