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Pasadena Home Sales Increase in May

June 14, 2009 By 1 Comment

Unit sales along with the median price make positive gains in May, continuing an upward trend in 2009.

Predictability, which was absent in the Pasadena real estate market during the last two years appears to be making a return. Predictable that is, when the seasonal home buying months once again become the months of May thru August. The median price of a Pasadena home exceeded $500,000 for the first time since November 2008.

The housing market which has exhibited some positive trends of late still offers a few inconsistencies. For example, the market for single family homes is outselling the condo/townhome market by a ratio of 2:1. In terms of months of supply, single family is about 6.75 months, and the condo market is closer to 10 months. Also sellers of condos and townhomes are having to be more aggressive in marketing their properties, evidenced by the final sales price achieving only 90% of the original asking price.

The catalyst for this market remains homes under $500,000. One of the most telling statistics is how the market has changed. As an example in May of 2008, only 13 homes sold at a price below $500,000. In May of this year that number increased to 28.

In the market for homes over $1,000,000 there were 18 homes selling in May 2008 and the number dropped this year to 11. Whereas “declining” used to be the adjective of choice to provide a one word label that summed up the Pasadena real estate market, I think the new word now becomes “shifting“.

Pasadena Homes May 09 Sales Report

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Pasadena CA Real Estate – up2date Market Report for February

March 11, 2009 By 4 Comments

What if you walked into the department store and found everything on sale, only to find you not in the mood to buy anything. Now apply that to the Pasadena housing market. Many properties for sale have reduced their price at least once, in effect putting themselves on sale. What happens if no one buys? Maybe after awhile it’s marked down again until finally someone buys it or it’s taken off of the market. This is the dilemma many home sellers find them self in.

The federal government has even thrown in an incentive – an $8000 tax credit if you purchase a home this year. An $8000 credit has much more meaning if you are buying in Oklahoma. For this credit to be applied properly it would be indexed based upon the sales price in the area. A note to our State representatives – next time negotiate harder.

As stated in the January report, the Pasadena real estate market was close to yelling U N C L E. Sales results for February finally indicated some stability in the market. The steep declines we have seen the last few months subsided and pricing began to level off with the exception of townhomes and condominiums. I think Buyers are weighing their alternatives and deciding that single family homes offer a much better alternative to the current selections available in other areas of the housing market.

My charts include median pricing as far back as 2004. However with the median price of Pasadena home at $435,000, I would have to go through the archives and see when the last time prices were this low. There has been a moratorium on foreclosures recently, however there is some speculation that we could begin to see an increase in activity now that the Obama housing plan has been unveiled. This puts to rest who will benefit, which I think the market has been waiting for.

Enclosed below is the complete recap with median prices and units sold. In the coming week, we will look at the forecast for the next few months.

Pasadena Homes Feb09 Sales Report
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Pasadena Home Sales in December, Not So Joyous

January 14, 2009 By 1 Comment

Retail sales for the month of December were released today. Year on year sales indicated a decline of 9.8%. A 10% decline in the price of Pasadena homes would be welcome news. Actually a 15% decline would be nice to see. Isn’t December supposed to be the most wonderful time of the year?

Other than sharing a name and a freeway, the Cities Pasadena are the antithesis of each other at least in terms of home prices. The South Pasadena real estate market can sell fewer homes and maintain an increase. On the other hand, Pasadena sells nearly twice the number of single family homes and prices fall $200,000 or 27%.

Pasadena Single Family Home Sales

The road to recovery begins with an increasing number of homes being sold. This is happening at least in the single family category and a positive sign. The housing market has been similar to a car wreck. You take an immediate inventory of your senses to see if you are okay to continue driving. Most people are moving past the housing freefall. Lower interest rates are getting people back in the car.

We are beginning to see some evidence that selling times are slowly decreasing. Inventory currently stands at about a 5 month supply, again a sign of normalcy returning. If only we could find any positive proof that prices would begin to stabilize. I actually thought the December median price would be closer to $515,000. Looking at January, it appears that the median price could fall to $460,000 based upon the median price of homes currently in escrow.

Pasadena Townhomes and Condominiums

If you are a Buyer in this market you have a tremendous amount of leverage. Property owners have got to be desperate for an offer. If this were horse racing, bet the trifecta, prices are down, the number of sold units is down and selling times are up, way up. I think homebuyers are making their choice very clear, a single family residence offers a much better value in today’s market than a condominium or townhome.

Pasadena Real Estate Outlook

I am polishing the crystal ball with another coat of Windex this month. At the beginning of 2008, the number of homes that were sold were at some of their lowest levels in years. Look for sold units to double at a minimum. Prices will continue to drop compared to the previous 12 months, however we will begin to see more consistent median prices on a month to month basis.

In any market one of the great unknowns is consumer sentiment, and how do consumers feel about investing in the economy and spending money. Lets home the new administration begins with an increased consumer confidence. After all, if you believe it you can see it.

Pasadena Homes Dec08 Sales Report
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Pasadena Real Estate Report on November Home Sales

December 13, 2008 By 1 Comment

It was said many years ago people could look at the position of the sun and tell the time of day. Pasadena real estate is no different. Just look at the poor performance of home sales and it must be November.

Traditional sales of Pasadena homes in the past have resembled more of a bell curve, low on both the right and left ends, (January & December) but higher in the middle (May – August), indicating a seasonality to home sales. But then again we haven’t seen traditional for about two years.

The data for November is disappointing. There did seem to be some momentum building in the market as unit sales were increasing, albeit the brakes were applied. Not a slow rolling stop, but more of a skid.

What Effected the Cause?

When analyzing results, I look for triggers. What happened in October that resulted in poor sales results in November? Could it be the federal bailout, reduced gas prices, decorating for Halloween? Or could we just be in the infancy stages of normalcy, a return to seasonality, the home buying lull after the return to back to school? It’s hard to make a single determination as so many external factors have to be considered.

Pasadena Real Estate November Home Sales
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Pasadena Median Home Prices

The median price sank to $500,000 for November. The last time the median price was at this level was 4 years ago. Homes priced under $500,000 are generating most of the activity, while homes in the $600,000 to $1,000,000 range have slipped into hibernation.

All of the market statistics are included in the 11 page presentation. If you would like to receive complimentary Pasadena market reports updated weekly, enter your contact information.

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Pasadena Real Estate – up2date October Market Recap

November 16, 2008 By 1 Comment

“It was the best of times, it was the worst of times”…Charles Dickens

The same can be said of the Pasadena real estate market. The market overall continues to pick up steam. We continue to see unit volume increases, indicating that buyers are returning to the market which is good news. On the flip side those buyers are opting for many of the foreclosures and bank owned properties in Pasadena.

Unfortunately we can not confuse an increase in unit sales as being beneficial. Currently an inverse relationship exists with the number of houses that are being sold and the median price. Right now as more homes are sold, the median price continues to decline as short sales and foreclosures are eliciting multiple offers.

Market Action

In a slower market homes that are priced in the mid price ranges ($700.0 – $999.0) are usually prone to slower selling times. The reason is many buyers and investors look for opportunities to buy below market value in the the lower price ranges. In the higher end homes above $1MM, home buyers are not as susceptible to the increased demands of loan qualification, therefore homes are more likely to turnover.

The big question to which there is much speculation is “Is Pasadena real estate close to a bottom?”

If the projected sales numbers for November are any indication, the answer is “not yet”. Of the homes currently in escrow the median price appears to be lower than what was recorded for the month of October.

Pasadena Homes Market Report

The enclosed slides break out the numbers for the overall residential market. Included are single family along with condominiums and town homes. The report is best viewed by using the full size icon in the lower right hand corner.

Pasadena Real Estate – up2date Market Recap for October
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