If the real estate industry had a radar screen a few of the key indicators would be the (1) days on market, (2) current inventory and (3) the median price. Used individually these barometers can provide an “at a glance” representation of today’s market. When used in graph context, they can sum up the symptoms of the market, whether it be a buyers or sellers. They can either portray a bright sunny day or let you know that storm clouds are looming on the horizon.
Pasadena Median Price and Days on Market
As indicated, the number of days it is taking a Pasadena property to sell has steadily been on the increase since March of last year. During the same period the median price has dropped about $65,000, as the mix of homes that are sold and in demand continue to favor the lower end of the pricing scale.
The disparity began to increase in November as the two market indicators began moving in opposite directions. Based upon the current direction of these two separate measures, they may continue to move away from each other for a while.
Inventory and Days on Market
The inventory of homes for sale was unusually high for the summer months and has declined considerably as of late. However the declines are not due to an increase in the number of homes sold, but to cyclical factors associated with the winter months as are the increased selling times.
The days on market number measures the current number of days a single family home has been listed for sale and does not include condos or townhomes.
Median Price and Inventory
With the median price and inventory at 9 month lows what is the prognosis for 2009? The months of January and February are usually very low months for real estate activity. However with interest rates and prices corresponding with the declining graphs, it appears this trend could reverse. Only 50 homes were sold in the first two months of last year, so the volume increases could approach twice the previous levels. With the median price off about $200,000 on a 12 month basis, the declines are likely to continue for a few more months. Look for an increasing number of homes sold, but at lower sales prices.
The charts are courtesy of Altos Research LLC, copyright 2009. If you would like to receive weekly Pasadena real estate market reports, send me an email. The reports are courtesy of up2daterealestate.
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