In a surprise move the City of Pasadena announced today that it was canceling all of the homes listed “for sale” due to a lack of interest. Homeowner’s were instructed to remove all “for sale” signs on the property. Sales of single family homes have declined 50% for the last three months and the decision was made today before things could get any worse. One city official who ask to remain anonymous said that “if we can tell homeowners they cannot cut down their trees, we also believe we can put a stop to homes being listed “for sale”. We do not want values to decline any further, and this will protect other property owners who are not trying to sell”.

The above is only a tongue in cheek analogy of the current real estate market in Pasadena. Any reference to people or events is purely fictional.

February Home Sales

Were the problems in the housing market a window to the economy? When the housing market on the east and west coast began to contract, was the middle squeezed so hard that a recession was looming? According to the just released UCLA Anderson Forecast, a recession is not on the horizon. Rest easy Pasadena and California. Be assured with home prices falling, foreclosures rising, and no end in sight for the price of a barrel of oil, there will not be a recession. Glad we now have that settled. Academia has spoken.

2008 is off to a Slow Start

The part in the introductory paragraph about the rate of sales is correct. We have witnessed approximately a 50% decline in single family unit sales for the last three months. Not the kind of start we hoping for.

Single Family Homes Decline

The rate of decrease in the median price of a single family home was quite noticeable compared to months past. Call it a monthly trifecta. With a price decline of roughly 8%, a 50% drop in units and an increase in time of 35% to sell those fewer units, February was, somewhat expected if not predictable.

Townhomes & Condominiums

February also put a stop to the rising median price of a townhome and condominium. Buoyoed by the recent new construction, this segment of the market also felt the effects of a slowing market and overall uneasiness in the economy. Mirroring the single family category, sales declined close to 50% and also the median price dropped 5.3%.

What’s Next?

It will be at least May before we begin to see if the recently enacted increases in the conforming loan rates make any difference in the housing market and more importantly Pasadena real estate. Until then we will just have to be patient and hopeful that a return to normalcy will occur. At least we don’t have to worry about a recession.