Pasadena Home Sales Increase in May

Unit sales along with the median price make positive gains in May, continuing an upward trend in 2009.

Predictability, which was absent in the Pasadena real estate market during the last two years appears to be making a return. Predictable that is, when the seasonal home buying months once again become the months of May thru August. The median price of a Pasadena home exceeded $500,000 for the first time since November 2008.

The housing market which has exhibited some positive trends of late still offers a few inconsistencies. For example, the market for single family homes is outselling the condo/townhome market by a ratio of 2:1. In terms of months of supply, single family is about 6.75 months, and the condo market is closer to 10 months. Also sellers of condos and townhomes are having to be more aggressive in marketing their properties, evidenced by the final sales price achieving only 90% of the original asking price.

The catalyst for this market remains homes under $500,000. One of the most telling statistics is how the market has changed. As an example in May of 2008, only 13 homes sold at a price below $500,000. In May of this year that number increased to 28.

In the market for homes over $1,000,000 there were 18 homes selling in May 2008 and the number dropped this year to 11. Whereas “declining” used to be the adjective of choice to provide a one word label that summed up the Pasadena real estate market, I think the new word now becomes “shifting“.

1 thought on “Pasadena Home Sales Increase in May”

  1. A $500K median is completely unsustainable in my view. People do not make enough money to support that and banks are not going to go back to the easy money days which is what you need to sustain it.

    We’re finally looking at a strengthening million dollar housing bust. Down payments are at least 20% and many asking more than 30%. There are less lenders willing to dole out jumbo mortgages. And interest for jumbos are still a good chunk higher than conforming. High unemployment, even with upper income buyers, and the lack of a move-up buyer all points to more pain the higher end, which will drag down the median.

    There are just too many million dollar homes, especially in Pasadena, and not enough qualified buyers in that income range.

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