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.