Smart move in Pasadena?

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On Tuesday I posted info on a Pasadena house that embodied many of the inefficiencies we’re seeing in this housing cycle. It’s mortgage debt far exceeds what buyers are willing to pay for the home, which has been foreclosed.

Just a bit down the street, there’s another house at the far opposite end of the spectrum in terms of its market history. This place is as minimalist as the other house was extravagant -- in quite a stylish way.

The roughly 1,100-square-foot house was purchased in 1994 by its current owners for $218,000. That was $20,000 less than what it sold for in 1988. It went on sale last month, listed for something like $580,000, and is now in escrow. Though records show it as a one-bedroom, it was listed as a two-bedroom, and had a swimming pool.

I’m guessing the family that lived there for 15 years is ready for a bigger place -- and maybe even has paid off the mortgage by now. Looks like the owners’ restraint during the bubble paid off. They probably could have sold for more during the peak, but might have gotten into a pricey trade-up purchase they would later regret.

Having been camped out in the Antelope and Victor valleys recently, I haven’t had a chance to knock on the door to see if the family wanted to share its story, but will try to do so soonest and provide an update.

-- Peter Y. Hong