From all indications, February was a good month for the Pasadena real estate market. Sales of single family homes were up 47% over this time last year. Homes going into escrow also increased by 26%. But is the news all rosey?
Depends on your perspective. If you are selling your home all indications point to a sellers market. You may remember that term. It was used quite often between 2002-2006. It may come as a surprse to you that the term has resurfaced and is in vogue again. Many of us thought the phrase was destined to find its place in history next to words such as “typewritter” or “landline”.
Where is the Inventory?
The number of homes available for sale is down by almost 50%. If your in the market to buy a home, your choices are limited at this point and it’s only the beginning of March. As you move around from home to home, you may find yourself competing with the same buyers. Which by the was is very similiar to trying to enroll your child in private kindergarten here in Pasadena. So many kids, so very few available openings.
The Outlook for Spring
We haven’t entered the peak home buying season yet. Normaly there would be more inventory available because homes usually sit unsold in January and February. Not the case this year. You have to wonder if low interest rates have accelerated the Spring selling season?
I went back and looked at the last 5 years for only the month of February. The results indicate we have recovered very well from just a few years ago. One thing to consider in terms of the median price, distressed property sales now makeup approximately 25 to 30 % of our market. These consist of bank owned and short sales.
|months supply inven||22.1||8.1||6.5||6.8||3.7|
|avg price square foot||492||358||359||394||394|
|median price ($000)||724||488||508||602||519|