Pasadena Property | Pasadena & South Pasadena Real Estate

Pasadena Listings Reflect Post Holiday Slowdown

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.

Pasadena Home Sales up2date Review

I have prepared my elevator speech for the Pasadena housing market….”consistent”. There you have it, nothing fancy, and nothing dramatic, just a quick conveyance of an idea that succinctly sums up Pasadena home sales for the month of September. Consistent was derived by looking at the median price decline for the month, which just happens to be the same decline as we had in August.

Again, rather than insert a matrix of numbers and try to explain each segment of our real estate market you will recognize the graphic at the end of the paragraphs. All of the market data is now put into a PowerPoint presentation and delivered via a slideshow. To me, the synopsis is much easier to read and therefore easier to understand.

Allow me to elaborate on a couple of the highlights in September. Inventory (meaning homes and condos available for sale) is beginning to decline. The main emphasis for this has to do with seasonal occurrences rather than increasing home sales. We are not however seeing the monthly volume swings that we used to experience when the market was much more active. In last month’s report I had suggested that we would see a big increase in the number of homes (units) that were sold. We did, by almost a 3:2 ratio. That could easily continue for the next several months. The reason is that in the 4th quarter of 2007, home sales fell off the radar screen, so today’s increase is against last years poor performance. Units will increase, however the same will not be applicable to prices. October and November’s median price last year was $655,000 and $654,000 respectively. That elevator has a way’s to go before we see those kinds of prices again.