Pasadena Home Sales for September

Beginning this month I am going to change how the monthly sales results are reported for the Pasadena Real Estate market. Instead of just looking at median prices, we are now going to overlay the price per square foot for the same period.

Pasadena Single Family - Price per Square Foot & Median Price
Pasadena Single Family - Price per Square Foot & Median Price
Anytime you hear how sales are being reported in the media the focus is always on median prices. This year has been a very unusual year in the sense that sales of foreclosed homes in Pasadena have been a much bigger segment of the market. As a result the increased unit sales resulting from distressed properties tend to over exaggerate the decline in property values.

The advantage of adding the price per square foot is this measurement will trend along the same lines as the median price of homes sold, but the peaks and valleys are not as pronounced. By eliminating the highs and lows, you will see the natural progression of pricing as we move through the year and seasonality that Pasadena home sales experience. Now having said that the month of May price per square foot of $522 seems way out of line. I went back and checked my numbers and it appears to be at least $100 too high.

Pasadena Single Family Homes - Inventory and Sales Levels
Pasadena Single Family Homes - Inventory and Sales Levels

Pasadena’s Leading Housing Indicators

  1. Units Sold – The fact that unit sales rose quickly and seem to be declining just as fast is probably not cause for concern. It’s not uncommon for home sales to peak in July or August and then slowly decline through the end of the year.
  2. Inventory Levels – With a current inventory level of 4.4 months based upon the current rate of sale, inventory levels are very moderate if not on the low side. I wouldn’t anticipate much change as we approach the holiday season unless we begin to see more foreclosed inventory hitting the market. This could be more of a factor this year due to the moratoriums that were placed on banks foreclosing last year during the fourth and first quarters.

    Summary

    Single Family, Townhome and Condominium Inventory and Sale Units
    Single Family, Townhome and Condominium Inventory and Sale Units

    Overall the outlook for the Pasadena real estate market at least where residential is concerned is much more favorable than this time last year. The forecast for next year could be quickly forthcoming as Congress may or may not extend the $8000 home buyer tax credit. Since we may see the fed begin to withdraw from purchasing mortgage bonds, some type of incentive may be needed to continue the momentum in the housing market. Consumers have become accustomed to interest rates in the low to mid 5% range and without any incentive from Uncle Sam may be contented to sit on the sidelines and wait for the next program to come their way.

    And now you’re up2date on Pasadena real estate.

    The source for the market data used in the graphs is from TRENDGRAPHIX,INC.

3 thoughts on “Pasadena Home Sales for September”

  1. unbelievable how Realtors can keep trying to convince people that their homes are worth way more than they are. this only benefits realtors trying to make more money on percentage and the home owner that is trying to move away from an overinflated location. If the average Pasadena household makes 80k/year, then they should be able to afford the average home in which a bank would only qualify them by buy something that is 300,000. The ave home in Pasadena is NOT 300k. It’s more like 500k. 16% unemployment or part-timers…20% ave reduction in pay…30% loss in investment savings and a BUNCH of empty homes/condos/townhomes that YOU are not listing as well as a ton of homes owned by banks that they don’t want to release. NO 1200 SQ FT ANYTHING IS WORTH $500K when you can rent that same place for $2000/month AND REALTORS ARE WRONG TO TRY TO CONVINCE BUYERS ITS OK TO PAY THAT! I wish you guys would just tell the truth which is even in Pasadena, the homes are too expensive. Preying on less educated people and convincing them to waste their money on an emotional high of home ownership is just plain wrong. I used to want to do real estate. Now it just sickens me. I’ve lost so much respect for that industry.

  2. I don’t feel the antagonism toward realestate agents is warranted. Does the computer salesperson at the local electronics store who sells you a computer only to find out 6 months later you get more machine for less money keep computer prices too high. And what about the big screen TV’s, what about car prices?

    Things are sold at market prices, based on our capitalism and free enterprise. Enjoy it while we still have it since it seems to be in jeopardy. There are many price reductions on properties in the MLS on a daily basis. House prices have come down proably 20% in certain areas since 2006. Are real estate agents to blame for this too?

  3. That’s a terrible comparison. You can’t compare those items as they are depreciating assets where a home is not. Nobody buys a computer, car, or TV hoping that it goes up in value or retains it. No one takes out a loan and can walk away from it buying those depreciating items and they can’t write off the interest. With respect, your comparison is totally wrong. If I listened to an agent last year when they told me it was bottomed out, I’d be in trouble now. Likewise when my agent told me 2 years ago that it was a good time still. My common sense stopped me, but I can’t say that for many people I know. Agents aren’t the only ones to blame. The banks need to give up the homes on their list too and the government should never have bailed banks out. That’s a major reason home prices have not come down to where it should be. But if agents didn’t work on commission, I’d know they are working for me as the buyer to get me the best deal. For sellers, it’s great still cuz the agents will try to get more money so they can make more money. I just want to hear an agent be honest and tell buyers to hold on and rent for now cuz it’s way overpriced and there’s way too many homes available to have it priced so high….and to tell sellers in need of selling that they need to drop their price rather than let the entire community think that prices are on its way back up when there is no economic sense for that to happen. But you are right in one aspect. If we are chumps and agree to pay these overpriced homes, then in our capitalistic society, it should sell. It just seems like a conspiracy to trick people to thinking that they need to do that and immoral. The logic fails me to hear that the government wants everyone to be home owners, yet they aren’t doing anything to make homes more affordable. 8000 tax credit just means the house will be priced 8000 higher than it should be.

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