The sluggish start for Pasadena’s real estate market continues into March of 2026…
Hi, it’s Eva Lin with my monthly market update to keep you in the loop.
If you saw February’s update, you know that recent sales activity has dropped considerably compared to the same time last year.
We now have another month of sales data officially in the books and the market continues to show signs of sluggishness.
Let’s start off by taking a look at local inventory levels.
Last year, 175 single family homes hit the market in Pasadena during January and February.
Bear in mind, during that time we were contending with the disruption of the Eaton Fire.
This year, only 117 homes went up for sale over the same two-month period.
That’s a 33% year-over-year drop.
Total inventory–meaning not just new listings, but the total number of houses for sale–is also down by over 20% on a year over year basis.
So, housing supply has dropped, but that’s only half of the equation.
The other half is demand and the best way to assess it is by looking at a data point called Pending Sales.
This refers to the number of houses that went into escrow and it reveals the most current data about buyer behavior.
During January and February, a total of 65 Pasadena houses went into escrow.
Last year, 93 houses went into escrow during the same period, so we’re seeing a comparative drop of about 30% in buyer activity.
Another good measure of buyer activity is called Days on Market.
This refers to how long it takes for a house to go into escrow.
Over the past few months, Days on Market has spiked and this goes even beyond what we’d expect during the slow holiday season.
Consider that during the two-and-a-half-year stretch from May of 2023 through November of 2025, Median Days on Market never exceeded 21.
But during this past December, that number jumped to 35 days. In January it climbed even higher to 38 days. And in February it was still at a relatively high, 22 days.
So buyer demand is down by this measure also, but there are a few important nuances to take note of.
For one, the drop in buyer activity is strongly correlated with the drop in overall inventory.
This is good news for home sellers because the time to worry about serious downward pressure on home prices is when inventory rises and buyer demand doesn’t follow suit.
Second, and also a good sign for home sellers, is that median Days on Market did drop last month.
While it’s been taking considerably longer for houses to go into escrow during the past few months, declining days on market is a positive sign as we enter the spring selling season.
To be sure, houses are still selling and some are receiving multiple offers. But, overall, market conditions have really balanced out.
Simply put, home buyers have more options and more leverage than in years past.
If you’re contemplating a home sale, it’s important to be aware of this so you can adjust your pricing and negotiating strategy accordingly.
If you’d like to learn more about how to navigate your upcoming sale or purchase, I invite you to reach out to me.