Pasadena Says “AMF” (adios my friend) to 2007 Real Estate Market

The one good thing about the 2007 Pasadena Housing market… it’s over!

Home sales for the month of December went out with a whimper as there were only 37 Single Family units sold compared to 81 in December of 2006, a decline of 54%. Median prices however stabilized and held firm at $775,000.

Pent up demand surfaced in December of 2006 and it was uncharacteristically a strong month for housing. It seems we had a late year end rally that continued into January and February of 2007. Then the news regarding sub-prime surfaced in March. I would expect January and February to also run behind last years numbers despite some very favorable interest rates, simply due to the strength of last years sales results.

Townhomes & Condominiums

Sales of Townhomes and Condominiums remained fairly flat in terms of units, however we did see the median price fall from $545,000 last year to $459,000 in December ’07. This is a number that has seesawed back and forth this year.

Current Inventory Levels

Based upon these latest rates of sale, there is a tremendous amount of inventory on the market. Currently there is approximately a 10 month supply of Single Family homes for sale and almost an 8 month supply of Townhomes and Condo’s. These numbers are calculated based upon the absorption rate in our area. Anything over a 5 month supply is considered a Buyers Market.