Has Pasadena Real Estate Reached "the Bottom"?

The million dollar question right now is when will the bottom of the real estate market be? At what point will the decline in home values reach its lowest point and begin climbing again? In the minds of millions of buyers this is the most important question for their home search.

For Pasadena, CA real estate that time may be now. I’ve done some market analysis recently and discovered that median home prices have turned upward for the first time in over a year. The chart below shows the 90 day average price of homes for sale in Pasadena.

Even more interesting is the drop in inventory of active homes for sale that has happened in recent weeks for Pasadena. It’s basic capitalism that when supply drops and demand stays roughly the same that a price increase is soon to follow.

We’re keeping an eye on the market so we can provide the most current information to our clients so they can take full advantage of the great deals we find here in Pasadena.

Time to Trade Up!

With so much negative media about real estate and the economy, it’s easy to think we should all just put our money in our mattresses and forget about buying or selling any time soon. But this real estate market actually presents a great opportunity for trading up to a better home. Here’s how:

If prices are down 20% in Pasadena, then that means that a home that was $400,000 would now be $320,000. And a home that was $800,000 is now $640,000. If you had a $400,000 home and wanted to move up, your first instinct is that it’s a bad time to sell because you’ll only get $320,000 for it and you don’t want a loss. But in fact, even if you lose $80,000 on the purchase of your current home, you’ll save $160,000 on your new home of $640,000. You actually save money by selling and buying something more expensive.

We’re finding that it’s a great time to trade up in Pasadena right now. There are REOs and short sales that have brought the price down even on Pasadena luxury homes. If you want to take a look at what kind of deals are available right now, you can sign up for a Hot List and let us know what you’re looking for, and we’ll send the information to your inbox. And when it’s time to start looking, you’ll want to get pre-approved for a loan so you can demonstrate to sellers that you can complete the deal.