The Pasadena housing market surged in October 2020. In fact, 93 homes closed, making it the busiest sales month of the year. This surge defied expectations. COVID-19 had wiped out the traditional spring buying season. As a result, it disrupted normal market patterns. Still, buyers flooded the market despite the pandemic.
Meanwhile, low inventory fueled fierce competition. Many homes received multiple offers and sold above asking price. Sellers took advantage of the demand and closed deals quickly. The median sale price reached $1,050,000. That marked a 7.5% increase from the previous year. Single-family homes led the market with 65 sales. Condos and townhomes followed with 28 closings.
Low mortgage rates also drove demand. Rates averaged just 2.8%. Consequently, buyers had more purchasing power. Remote work created another shift. Buyers wanted more space and larger homes. Families also looked for properties near Pasadena’s top-rated schools. In addition, Pasadena’s historic architecture, culture, and proximity to Los Angeles continued to attract buyers.
However, supply could not keep pace. Only 127 new listings entered the market. That number fell 15% from September. At the same time, many sellers hesitated to list. Some worried about health risks. Others expected holiday disruptions. As a result, buyers faced even less inventory. Consequently, bidding wars became common. Move-in-ready homes attracted the strongest competition.
Yet, economic uncertainty remained. Job losses and health concerns continued to affect buyers and sellers. Even so, Pasadena’s housing market continued to move forward. October 2020 showed just how quickly the market could change.
The least expensive sale was a three-bedroom, one-bathroom, 760-square-foot home at 464 Avocado Ave., which sold for $635,000. The most expensive sale was a five-bedroom, eight-bathroom, 8,322-square-foot home located at 1725 Orlando Rd. This gorgeous estate sold for the asking price of $7,690,000.
The Pasadena housing market is on fire! Of the ninety-three homes sold last month, fifty-two sold over their asking price. Eight sold for asking. Thirty-three sold below the asking price. The absorption rate of 1.37% is the lowest for the year.
“Housing continues to be a bright spot during an otherwise challenging economic time for many U.S. households. Those in sectors that weathered the transition to remote work successfully are now able to take advantage of low mortgage rates to purchase a home for the first time or to trade up to a larger home.” Frank Martell, President and CEO of CoreLogic
