Let’s dive into the Pasadena housing market for February 2021. Last month fifty-four homes sold. Nine had price reductions before selling. Thirty two of the fifty-four homes sold over asking, five at asking and seventeen less than asking price.
The least expensive home sold was a two-bedroom, one-bathroom, 1,102-square-foot home. It was located in Pasadena’s presidential neighborhood at 1382 Coolidge. This home sold at the list price of $650,000 without going on the market before selling (aka selling off market). The most expensive home sold was a six-bedroom, six-bathroom, 12,504 square foot estate at 2965 Lombardy Road selling for $9,500,000.
The average selling price and median price have both increased.
The absorption rate has ticked up ever so slightly, which is typical after people recoup from the holiday. Historically low interest rates were the significant driving force behind 2020’s Pasadena housing market activity. Heated competition for so few listings drove home prices to historic highs. We will see how much longer low interest rates can offset the decreased affordability challenges today’s home buyers face.
Perception of “low” interest rates is in the eye of the beholder. The slight rise this month in interest rates have my kids and their house hunting friends in a tizzy fearing they have missed the boat. My first home was 9.5 percent! And I was comfortable with it because I remembered the seventies. My final mortgage ended at 5.5 percent which I was thrilled with in comparison to my first. I know every tick means extra dollars but we always find a way. No need to panic.