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

Laurie Turner May 22, 2023

With a reputation for being one of the most desirable communities in the region, the beautiful Pasadena neighborhood of Los Angeles County, Calif., offers Golden State living at its finest. From delicious restaurants to trendy shopping to exciting entertainment to picturesque parks, it has no shortage of fantastic amenities to offer its residents.
Many families and professionals call Pasadena home, attracted by the serene atmosphere it offers throughout its tree-lined streets. Its property selection is fabulous, featuring everything from chic condominiums to grand estates, and its real estate market is always in vogue, with new prospects eager to move in. Despite cooling market conditions at the end of 2022, we expect the Pasadena real estate market to rebound through 2023.
To help you determine if 2023 is the right time for you to enter the market for single-family homes for sale in Pasadena, CA, this forecast by Laurie Turner covers everything buyers and sellers need to know.

Healthy property values despite cool winter market

Property values in Pasadena have increased in recent years, and this trend is expected to continue into 2023. As values steadily rise, homeowners reap the benefits of their original purchase by possessing a property that’s often worth significantly more than when they bought it as years go on. Along with being located in an excellent neighborhood to live in with a great real estate selection, single-family homes for sale in Pasadena, CA, can also be a fantastic long-term investment vehicle.
For buyers, the short-term cooling of the Pasadena housing market represents an excellent opportunity to purchase. Check out the local, year-over-year pricing trends in Pasadena real estate as of December 2022:
  • The median sales price was down 25% from $1.58 million to $1.18 million
  • The average sales price was down 16% from $1.84 million to $1.54 million
  • Price per square foot was $764, about the same as last year
Should you decide to sell years in the future, you’ll likely gain a large profit margin and earn a substantial return on your purchase. Still, sellers toward the top of the luxury market in Pasadena have everything to gain by working with an established expert like Laurie Turner. With Laurie’s help, you can list at the optimal time in 2023 and attract strong bids from the upper echelon of buyers who don’t necessarily heed local market trends.

Low activity + consistent demand

Occupying a privileged seat at the foothills of the San Gabriel Mountains, Pasadena attracts much interest from local, out-of-state, and international buyers. We expect strong demand for homes to increase despite low market activity at the close of 2022:
  • New listings were down 31% from 42 to 29
  • Pending sales were down 23% from 65 to 50
  • Closed sales were down 44% from 75 to 42
Year-over-year, inventory decreased slightly within Pasadena, with the months’ supply of single-family homes down from 1.8 months to 1.5 months. However, the market could shift rapidly because Pasadena is a relatively small sample size.
It’s rare for a desirable place like Pasadena to see low sales volume and inventory levels simultaneously. Demand should restore balance to the local market. People are increasingly seeking the peaceful atmosphere Pasadena is known for. As demand increases through 2023, we expect the market to balance between buyers and sellers. Rather than tipping the scale in the direction of a buyer’s or seller’s market, excellent opportunities will exist for both sides of the spectrum.

High competition for listings

The competition for listings in Pasadena can be fierce. Properties tend to solicit multiple offers, and the highest-quality listings commonly spark bidding wars. Properties usually sell above the asking price, and the market is further stoked by “pocket listings” at the top of the luxury market. As the market heats up with the weather, buyers and sellers should plan for intense negotiations and high competition.
As a buyer, your success depends on crafting an offer to suit the seller's needs. An experienced agent like Laurie can help you outsmart the field by limiting contingencies when the market favors sellers. Speaking of sellers — even when demand exceeds inventory, you still need to prepare your home for listing. Many fabulous homes for sale in Pasadena are available on the market; set yours apart with home staging, and choose your asking price with precision.

Quick sell times

Regarding homes for sale in Pasadena, they don’t tend to stay on the market for long upon being listed. Even in the doldrums of December 2022 (when market activity and prices were low across the board), the average home spent just 20 days on the market — even faster than in December 2021. Even in a slow month, condos for sale in Pasadena got snapped up in 39 days (while condo inventory remained constant at about 75 units). The hottest listings commonly move into a “pending” state in a matter of days.
With these quick sale times in mind, there are a few ways buyers and sellers can prepare before officially entering the real estate market. Buyers should be fully prepared to pounce if and when their dream home hits the market. There’s much more to it than picking a number and hoping for the best. Buyers with mortgage preapprovals are perceived as more reliable, which is crucial for sellers with a specific time window to buy their new home simultaneously.
If you plan to purchase or list a home in Pasadena, CA, during the 2023 year and seek professional guidance, Laurie Turner is happy to assist you. Having served within the community and its surrounding neighborhoods for many years, she brings expert insight into the selection of luxury real estate. Work with Laurie and gain the competitive advantage you need to succeed in this sought-after market.

*Header photo courtesy of Shutterstock

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