Pasadena April Home Sales & Stability is the New Black

If you had to make an attempt at describing the activity for the month of April in the Pasadena housing market a few words come to mind……stable, holding, and steady. These words are a little misleading in the sense that they are more descriptive than they sound.

Although they don’t indicate it, these terms are expressive due to the fact that the real estate prices in Pasadena have maintained the momentum they began to gather in March. As if we ever would have thought that just maintaining the status quo would become the new black.

The sales results for April were as close of a mirror image to March as we are likely to see. Sales held steady with about 100 units sold, while the median price dipped to $462,500 from $475,000 last month. A rounding error by previous calculations.

There are a few bright spots beginning to appear such as:

  1. The units that moved from “back up” to “pending” increased significantly indicating home buyers are feeling confident about their purchase and full y intend to close escrow
  2. The number of Townhome and Condominium units in escrow increased while prices appear to be bouncing off of the bottom.

All of the data is recapped in the 13 slides below including 5 year charts and graphs. Median prices and monthly unit sales recapping the Pasadena real estate market provide “at a glance” snapshots indicating the highs and lows. Click the icon in the lower right corner to view in full screen mode.

5 thoughts on “Pasadena April Home Sales & Stability is the New Black”

  1. I know we’ve been talking about this a lot the past few months. Specifically, I remember the spring median bounce you cited as a stabilizer that I questioned. Based on the median price chart, as it appears to be moving down again, it still says volatile to me just like before.

    Regarding the current median list price vs. median pending price, doesn’t it concern you from a long-term stability standpoint that the discrepancy between the two is so large? The higher end of the market is getting killed which is clearly not good for stabilization as it will likely place additional downward pressure on prices.

  2. Hannah,
    I believe before we see the higher end market begining to stabilize we will have to see the low end form a solid foundation and eventually hit bottom. That is what I believe is happening now.

    Based on some conversations I have had with other agents, they are beginning to see much more activity in the higher end of the market. Granted its only empirical data, but it does appear that volume is beginning to pick up.

    If we go back a couple of years when all of this started, just the opposite was true. The higher end homes were unaffected and still seeing some activity, while the lower end homes had come to a standstill. The momentum is beginnng to change. It may not be sudden, but things are moving in that direction.

  3. Whether the bottom end of the market is truly stabilizing is anyone’s guess. I still don’t think there are enough truly qualified buyers to make a recovery. I do agree that the low end needs to stabilize first before the high end can even start to recover. Now that most of the subprime defaults have been worked through, it looks like prime borrowers have been defaulting more.

    I don’t want to dispute the activity you or other agents have noticed, but in this market, buyers like most consumers are fairly segmented. The kind of buyers realtors see are more often than not ready to take the plunge. There are many more buyers that really want to buy now but are too scared to take the plunge for a number of reasons: recession, unemployment, declining prices, no savings, not qualified, etc. Then there are buyers like me, probably the minority, that are much more pessimistic. Buyers like me actually want to buy but think the prices are too high to be sustainable. Some of us are conflicted because we realize that when bubbles pop they tend to return to the mean value pre-bubble and want the return to the mean and a level of normalcy with incomes, but in order for this to happen, the recession will only worsen and the pain will be greater for all of us.

    Obviously this is a gross oversimplification, but the point is there are more buyer types out there than realtors realize and making an overall market judgment on only one segment of your consumer is probably not the wisest decision.

  4. Doug,

    Over here near the right coast (direction-wise), we’re seeing some modicum of stability as well. Our market normally dips in April over March because Augusta is home to the Masters Golf Tournament, and that full week involves a mass exodus of residents (schools are on spring break that week), and a mass temporary migration of golf afficionados. This shuts down Buyer traffic, and many Sellers rent their homes out to visitors, golfers, caddies, or sports broadcast folks. This year – unexpectedly, we saw a small increase in April sales over March. Hopefully a sign we’re begining to inject some stability here in a market that is down over 40% on 2006 numbers.

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