The current theory is that communities like South Pasadena have held their value pretty well over the last few years of economic crisis. This is partly true. They have held their value much better than Highland Park and Eagle Rock have. But the trend has still been down with South Pasadena over the last 3 years. It’s difficult to get a handle on the market just like it is in Eagle Rock, partly because few houses actually sell in each community, between 3 and 20 a month for South Pasadena, 7 and 14 for Eagle Rock. The average sales price has dropped about 30% over the last 3 years in Eagle Rock, about 24% for South Pasadena.
South Pasadena 3 Year Trend Graph
Does this mean that every house in South Pasadena is worth 24% less than it was in 2007? No. And if a house sold in 2007, would it sell for 24% less today? No. But it does mean that buyers are very cautious about value. Let’s work our way back. Here’s the graph for the average sale price over the last 15 months:
South Pasadena 15-Month Trend Graph
So the average sales price has dropped in the last few months. But if you look at the graph, you see the line zigs up and zags down all over the place. What is more
significant is that in 2009, there were 4 months in which the average sales price topped $1,000,000, while only once so far this year.
What about over the last 4 years? In 2007, there were 5 months that averaged over $1 million, in 2008, there were 6 months.
So it would appear that primarily in the last couple of years, the prices in South Pasadena have drifted down.
South Pasadena Data 2009-2010
It doesn't look like we are on the fast road to recovery, does it? But we can take heart with the graph that shows that over the last 10 years, after all the ups and downs, we are still up 75%.
The question on everyone’s lips is “when will the prices go up?” and the answer is, “No one really knows.” It’s interesting that South Pasadena has had its price slide down somewhat later than lower-priced neighborhoods like Eagle Rock and Highland Park. But while we all wring our hands and watch these average prices drift down, there are more houses selling in South Pasadena since April than there have been since September of last year, partly because prices are lower. Here is another interesting fact: over one-third of the closed sales this year sold at or over asking price. And the overall average list price to sales price ratio is over 99%, which indicates that if a property is priced right, it sells very close to its asking price. And the average days on market is 50, even including some properties that took over 200 days to sell.
So South Pasadena is a robust market right now, with a good number of sales, fairly low inventory, and some really good homes for sale. And for those who take the long view needed for real estate these days, a very good long term investment.