How will the tariffs impact our local real estate market?
And what’s happening with Pasadena home sales as we enter the spring selling season?
Today I’m sharing my Pasadena market update for April of 2025.
First up, let’s take a look at how local home values have been trending this year compared to last year.
During the first quarter of 2025, the median price for a single family home in Pasadena was $1.65M
That’s a 10% increase compared to the first quarter of 2024!
Another way to analyze home values is through a metric called price per square foot.
In Quarter 1 of 2025, that number averaged $912 for houses sold in Pasadena.
Compare that to Quarter 1 of 2024 and you’ll note a 6% increase year over year increase.
So, any way you cut it, Pasadena home sellers have gained considerable equity over the last 12 months.
The key drivers of this continued appreciation are (1) inflation and (2) limited inventory.
Let’s talk about inventory for a moment because it’s starting to rise.
As we enter the spring selling season, it’s only natural for more houses to go up for sale.
But those numbers are rising faster than in years’ past.
In March, on average, there were over 150 houses available in Pasadena.
Compare that to March of 2024, and you’ll note a 50% increase in inventory on a year over year basis.
If this trend continues, it’ll put downward pressure on home price appreciation.
Another factor that could put downward pressure on prices is the economic fallout from the tariffs.
Whenever there’s a big shake up in the economy, some buyers quit their home search entirely while some others put their plans on hold.
Less buyer demand always translates to lower offer prices, but keep this in mind…
Activity in the bond markets shows high anticipation for multiple rate cuts this year.
If rates do fall, more buyers will be able to purchase a home.
This means more competition and upward pressure on prices.
The simple truth is this…
It’s impossible for anybody to know how all these variables will balance out.
What’s more, trying to time the market is not advisable because there are too many unknowns.
What I do know is that demand for homes in Pasadena has proven extremely resilient over time.
I expect that fact to continue holding true as this year progresses and the economy adapts to a changing tariff environment.
The best thing you can do if you’ll be selling or buying a home this year is to focus on what’s in your direct control.
That means ensuring you have the absolute best guidance possible.
If you’d like to discuss this further, I invite you to reach out to me.
You can text/call me at 626-807-6581.