Its time to check the pulse of the Pasadena housing market and analyze what changes are taking place along with what we might expect for the next several months. On one hand it seems the housing market is performing better than expected. Very attractive mortgage rates are encouraging people to purchase a new home. On the other hand, many commercial establishments and the space they once occupied are now vacant. The recent closings of several Old Town restaurants within the last week came as a surprise.

The source of the data used in the graphs is only properties that are or were listed for sale. It does not track closed transactions.

Pasadena Single Family Homes

We have been intently watching and reporting on median home prices in Pasadena. While the median price is a good “at a glance” type measurement, two other keys are prices per square foot and the number of homes that are having to take price reductions to get sold.

Looking at the differences in the two markets (single family and townhome & condominium) we see that the price per square foot measurement for single family homes reached a low point around the first of May, while the price per square foot for condos and townhomes has been falling most of the year and might have just recently begun to show signs of leveling off.

We also see that the number of homes taking price reductions began to subside earlier in the year as demand started picking up. Currently the price per square foot on a single family home is around $417 and $389 for a condo/townhome. The month of May appears to have been a turning point and a benchmark month as visible differences began to occur and a market shift seemingly took place.

Pasadena Condominium / Townhome

Inventory Levels and Percent of Property Re-Listed

Again in the two graphs below (single family top & condo/townhome below) inventory levels began to drop early in single family and much, much later in the condo category. The condo market was very slow to build any momentum at all. Now with inventory levels around 230 units and the number of units being re-listed declining, expect to see more of a balanced market with buyers losing some of their previous advantage over sellers.

What to Expect

There has been much speculation about what will happen with the $8000 first time home buyer credit expiring on November 30. At this point most think that some form of it will continue. Aside from that I believe the next six months will be positive in the housing market with interest rates remaining low, inventory levels running at about 5 months supply, and the number of sold units along with median prices flattening for a while.

Also there is a push for banks to become more agreeable in allowing home owners to “short sale” their home as opposed to going into foreclosure. This is a much better option and could help to ease Pasadena’s current count of 700+ properties in some stage of the foreclosure process.