It had appeared the momentum in the Pasadena real estate market had been building. Sales were increasing, buyer’s were becoming increasingly optimistic, and sales were beginning to move away from just the lower end of the market.

The number of homes in escrow was increasing and stories were developing of multiple offers and quick sales. And we are not just referring to distressed properties. There is really no other term to describe the month of June than just an old fashioned “blow out”.

Almost every indicator showed a positive increase. the number of home sales increased 45%, the median price of a single family home was up almost $50,000 over last month. Even the townhome / condominium market which has been a major drag on reporting, sprang to life with approximately a 50% increase in the median price and unit sales over May.

Now that Newsweek has finally declared the recession over, I guess we have cause for celebration. Housing inventory, a closely watched barometer regarding the health and trends in the market is now down to about a 5.5 months supply.

It seems very puzzling to me that our local housing market can be so strong. Considering the local and national economic situation, what is it that is creating the demand for housing? Consumer confidence is not exactly at its highest levels but there is something that is driving people to buy houses.

What do you think it is?