Pasadena real estate market update 2024

Pasadena Real Estate Market Analysis: A Look Back at December 2023

As we usher in January 2024, it’s essential to delve into the Pasadena real estate market’s performance during December 2023. Analyzing this period’s key figures and trends provides critical insights into the direction and health of the local real estate scene. The data from December indicates a strong seller’s market characterized by quick sales and limited inventory, setting a tone for the market expectations in the new year.

The month of December saw a continued trend of low inventory in Pasadena’s housing market. The supply for single-family homes dipped to a mere 1.18 months, while the inventory for condos was slightly higher at 1.32 months. This persistent shortage highlights the dominant seller’s market, where demand outstrips the supply of available homes.

In terms of sales pace, the market was brisk. Single-family homes were selling in an average of just 15 days, and condos were even more rapid, taking about 11 days to sell. This quick turnover in properties underscores the strong demand for homes in the area.

Pricing trends remained favorable for sellers as well. Homes and condos sold for more than their asking prices on average, with homes fetching 103.2% and condos 101.2% of their listed prices. The median sold prices stood at $1,455,000 for houses and $790,000 for condos, pointing towards a prevailing interest in high-end properties.

Mortgage Rates and Projections

According Mortgage News Daily, as of January 8, 2024, the average 30-year fixed mortgage rate was reported at 6.74%, a slight uptick from the 7-month low of 6.67% seen at the end of December. This increase reflects the market’s reaction to strong labor market figures and other economic indicators. Despite this recent rise, the overall expectation is for mortgage rates to gradually decline throughout the year, influenced by easing inflation and a cooling economic landscape.

  1. What does the low inventory level indicate about the Pasadena market? Low inventory levels are a hallmark of a seller’s market, where demand outstrips supply.

  2. How fast are homes selling in Pasadena? Single-family homes are selling in an average of 15 days, and condos even quicker at 11 days.

  3. Are homes selling above the listing price? Yes, on average, homes are selling for 103.2% of the list price.

  4. What is the current trend in mortgage rates? As of early January 2024, there’s a slight increase in rates, but the trend might lean towards a gradual decline.

  5. What should buyers and sellers expect in the Pasadena market for 2024? Sellers can capitalize on current conditions, while buyers should brace for a competitive market, with potential fluctuations in mortgage rates.

Reflecting on the data from December 2023, the Pasadena real estate market clearly leaned in favor of sellers as we transition into 2024. With low inventory levels and high demand leading to rapid sales and over-list price offers, sellers are in a strong position. Buyers, meanwhile, face a competitive environment. The coming year is expected to bring some fluctuations in mortgage rates, possibly leading to a more balanced market. However, at the outset of 2024, the market remains decidedly skewed towards sellers.

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