Pasadena, CA, House Prices, Trends, & Forecast for 2023

Pasadena, CA, House Prices, Trends, & Forecast for 2023

Pasadena is a fantastic city just northeast of downtown Los Angeles in the stunning state of California. Its bustling dining and shopping districts keep life exciting all year, while its charming residential atmosphere provides a much-needed balance where locals can get away from the hustle and bustle of the L.A. scene. The city is highly sought-after for real estate seekers attracted by its promise of a high quality of life and upscale amenities. The property selection is outstanding, featuring everything from condominiums to estates, and many stylish architectural designs can be spotted throughout its tree-lined streets.

Before you make a leap into the Pasadena real estate market, here’s what buyers and sellers need to know for success in 2023.

Home Values and Local Real Estate Market Trends

Homes for sale in Pasadena, CA, consistently command high prices, thanks to the incredible appeal of the community and the surrounding area. With that said, the city has not been immune to the housing market cooldown experienced nationwide, as many buyers hesitate to make moves thanks to rising inflation and interest rates.

According to the latest data from the California Association of Realtors, the existing median price of single-family Pasadena homes is $1.32 million, which represents a 16.8% decrease since last year. In addition, the number of home sales has decreased by over 50%, and the number of active listings has increased by 19%. Finally, 42% of active listings have experienced a price reduction within the last month.

Opportunities for Buyers and Sellers

The above trends indicate that this may be the right time for buyers to enter the Pasadena real estate market if they hope to gain a gorgeous property for a slightly less elevated price. Gone are the days of red-hot competition, enthusiastic bidding wars across the board, and prices soaring well above the asking price. With the number of home sales dropping and active listings rising, many sellers in 2023 may be more willing to negotiate on the sales price or other contract terms. While Pasadena remains a highly desirable location with incredible (and expensive) homes, buyers who have been waiting on the sidelines may be ready to make their moves as the market shifts slightly in their favor.

While existing prices are slightly lower than last year, Pasadena properties are still savvy long-term investment vehicles for homeowners. Real estate seekers looking for an investment that’s sure to accrue value long-term would be wise to look into the Pasadena housing scene.

For those looking to buy, 2023 could be a great year to establish a position in the market. You’ll be able to lock in a property with a value that will keep rising over the next several years and has the potential to earn you a significant profit when you eventually sell it down the line. For those looking to sell now, your property has a good chance of attracting top dollar in 2023 if you position your home for success and list with a leading agent who knows the market inside and out.

High Interest from Buyers

When residential homes are listed on the market, they tend to attract a high level of interest from prospective buyers. This intense level of demand is unlikely to waver into 2023 and beyond as more and more people aim to make Pasadena their new home. Many of the most upscale, astounding homes still receive multiple offers from prospective buyers. This allows sellers to be more selective with the offers they accept.

From a buyer’s standpoint, be aware that although there is less competition these days, you will likely not be the only prospective buyer interested in purchasing the home as you (and your agent) devise a compelling offer. To increase your chances of acceptance, try to make your offer as attractive to sellers as possible. Be mindful of the number of contingencies you’re including rather than overloading the offer with terms and conditions.

From a seller’s standpoint, don’t feel pressured to accept the first offer that comes your way. Evaluate each offer carefully, and wait until an ideal offer presents itself before you proceed.

Competitive Listings

Although 42% of Pasadena homes for sale have recently experienced a price drop, and the median price of properties has slightly decreased as well, you (as the buyer) should still be aware of the possibility of a bidding war. Due to the area's appeal, Pasadena’s housing market can be quite competitive and will likely remain this way throughout 2023 and beyond.

Especially for the most spacious and upscale homes, bidding wars can be quite common, resulting in excellent profits for sellers. Many prospective buyers are happy to craft offers above the home’s listing price because they know its long-term value will earn them a solid profit in the end.

If you’re hoping to find a home in Pasadena, it’s important to be mindful of this trend, but don’t let it discourage you. Ensure that your financial situation is in order so that you won’t experience any setbacks due to monetary issues, and in the case that you are outbid, keep your eye on the prize. There are still many exceptional properties on the Pasadena real estate market for you to choose from.

If you’re selling, you’ll want to boost your chances of attracting the highest offers by making your home look astounding at every turn. With effective staging tactics, professional photography, and innovative marketing techniques on behalf of your agent, you can help your home stand out on the market and attract all the attention it deserves.

Fast Turnaround Times

Single-family homes and condos for sale have a habit of selling quickly, and this trend is expected to continue into 2023. As of the latest data from the California Association of Realtors, homes spend a median of 21 days on the market. This means that once a home is listed, it will likely start receiving offers quickly and go into a pending state after just a few weeks. This trend is great news for those looking to finalize the transaction quickly, but it's essential for both sides to start preparing early so that they’re ready to move at the pace the market is setting. As a buyer, you’ll want to make sure you’ll be ready to jump at the opportunity to make a purchase as soon as you find the perfect home. Be prepared with a mortgage pre-approval in hand to ensure confidence in your financial situation, which will also make you more appealing to sellers and agents.

If 2023 sounds like the right time for you to enter the Pasadena real estate market, Lisa Zastrow and the McGlashan Group are ready to guide you. As a top Pasadena realtor, Lisa’s extensive insight and expertise in the housing market will provide you with the skills and resources you need — whether you’re looking for the property of your dreams or aiming to earn top dollar on your listing. Reach out today.

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