Many residents in this town used to think that their community was immune to the ups and downs associated with the real estate market. With its small town feel, its idyllic neighborhoods and the much sought after and highly desired public schools, South Pasadena was insulated from the tightening credit markets and an ever increasing supply of homes for sale. These are issues that appear in the news media, in and around other area’s of Southern California. Not in South Pasadena.

Small Number of Foreclosure’s

There are currently 16 properties that are in some stage of foreclosure in South Pasadena. The small number of properties has not produced any downward effect on prices in the overall market as of yet. This number has been steadily increasing in the last few months, so it remains to be seen if this will produce any softening in home values. We should have a better idea around April or May, as these properties begin to be absorbed into the market.

Median Home Prices in the $800’s

The median price of South Pasadena real estate has hovered in the range of $800 to $850.0, throughout the year. What makes that relevant? We have seen a real softening in the market from homes priced in the range of $500.0 to $650,000. It has been difficult to find a home for sale in this price range other than townhomes or condominiums. Therefore since South Pasadena has a higher home price, it has not been subject to the steeper price declines and market volatility as other San Gabriel Valley communities.

South Pasadena Home Values

Home values remained strong throughout 2007 and did not appear to loose any of the momentum that was gained in the previous years. The market certainly exhibited many of the characteristics that were observed in other regional cities such as longer selling times and fewer homes sold. But in the final analysis, the values showed less than a 1% decline. Based upon the results for the year ending 2007, a market with little or no growth can be perceived as a major success.

2008 Outlook

I think 2008 will bring an increase in the number of home sales compaed to 2007. The market needs lower interest rates to get people buying again and that appears to be where the housing market is headed. Prices should stay at current levels with the median price remainig in the low $800’s.

Tags: South Pasadena housing market, South Pasadena real estate