Pasadena CA Real Estate – up2date Market Report for February

What if you walked into the department store and found everything on sale, only to find you not in the mood to buy anything. Now apply that to the Pasadena housing market. Many properties for sale have reduced their price at least once, in effect putting themselves on sale. What happens if no one buys? Maybe after awhile it’s marked down again until finally someone buys it or it’s taken off of the market. This is the dilemma many home sellers find them self in.

The federal government has even thrown in an incentive – an $8000 tax credit if you purchase a home this year. An $8000 credit has much more meaning if you are buying in Oklahoma. For this credit to be applied properly it would be indexed based upon the sales price in the area. A note to our State representatives – next time negotiate harder.

As stated in the January report, the Pasadena real estate market was close to yelling U N C L E. Sales results for February finally indicated some stability in the market. The steep declines we have seen the last few months subsided and pricing began to level off with the exception of townhomes and condominiums. I think Buyers are weighing their alternatives and deciding that single family homes offer a much better alternative to the current selections available in other areas of the housing market.

My charts include median pricing as far back as 2004. However with the median price of Pasadena home at $435,000, I would have to go through the archives and see when the last time prices were this low. There has been a moratorium on foreclosures recently, however there is some speculation that we could begin to see an increase in activity now that the Obama housing plan has been unveiled. This puts to rest who will benefit, which I think the market has been waiting for.

Enclosed below is the complete recap with median prices and units sold. In the coming week, we will look at the forecast for the next few months.

4 thoughts on “Pasadena CA Real Estate – up2date Market Report for February”

  1. I still wonder how much the Obama housing plan will affect areas in Southern California. Considering the massive price drops, I would assume many buyers falling far outside the 105% LTV. Also, for our area, how much is $8000 going to help. Personally, my income puts me out of the race so I’d get 0. I do agree with you that it would have been nice for the incentive to be regionally based as $8000 in Detroit could pretty much buy an entire house.

    I think the foreclosure moratorium will prove to be problematic again as it was when the Governator forced it last year. I believe it was September/October 2008, which corresponds to your price chart on page 11 and looks similar to the January/February 2009 figures.

    I’ve heard from a friend that his bank is changing requirements to no more than 41% of income going to housing. Since this has been the going trend, even the $435K median price seems too high for the median income, that is of course assuming “normal” DTI ratios are the primary factor in price declines is true.

  2. Hannah,

    I saw a study that said this plan was goiing to help 1 in 9 homeowners. A program with an 11% success rate would be considered failing in the private sector. I would agree with you that here in So Cal, the numbers will probably be even less.

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