Pasadena’s July Home Sales Are Highest Since 2006

I don’t think there should be any doubt left in the minds of local residents, the seasonal home selling season has returned. Little did we know or realize that it was going to be 3 years to the day when the market started to fall, or that it would correct itself 36 months later.

It was July 2006 when real estate markets began to soften. A gradual decline eventually turned into a market free fall. However, all of that appears to be behind us as we head into the back half of 2009. The good news if you are a property owner is to look at the median price. In August, months of anguish will soon come to an end as the median price scenario will correct itself. This will probably produce more of a psychological lift than a monetary, but since home buying has much to do with people’s perceptions and where they think the economy is headed it should be treated very positively. If you are in the market to buy a house, the last thing you want to hear is that home prices keep dropping. News like this could very easily make you decide to postpone your purchase. Why buy now if you feel that in a few months you can save some money?

July’s positive news about the Pasadena housing market includes

  1. a 26% increase in unit sales from June
  2. a single family median home price of $600,000
  3. a strong August based upon the homes in escrow
  4. and another strong performance in the townhome and condominium market

The presentation below includes a 5 year pricing history in terms of median prices and unit sales for the Pasadena real estate market.

4 thoughts on “Pasadena’s July Home Sales Are Highest Since 2006”

  1. I still don’t understand why the median home price is 600k and average 50 yrs old. Sure it’s come down from the high, but if the high was already inflated by 2.5 times or more, it dropping by 35% or even 50% is still not worth it. You have to have a combined income of 200k to qualify for a loan unless you go back to the crazy loans that falsely brought the prices up the first time and lead to the crash and people living above their means with no savings. This at a time where incomes are decreasing, taxes going up, and jobs being lost and stockmarket still at a 7 year low? People who buy these homes are not making a wise decision and for people to tell them that it’s a great time to buy should be a crime. Working as a professionally licensed engineer for 12 years and still can’t afford a medium sized home in pasadena despite a 90+k/year job (at one point 100k+) and 800 + credit score is sad.

  2. Prices in Pasadena are still WAY higher than what the local population can afford. I suspect part of the recent sales activity has been juiced due to Obama’s 8K tax credit. For some people, saving 8K even though they overpay by 10’s of thousands is a ‘deal’.

    I agree with BC though – it really is sad when nearly everyone in this city, could not re-purchase their own home today if they had to.

  3. You mention that the season home sales have returned… but are you absolutely certain it ever left? Looking at your data as well as data I have compiled along with others, I don’t think there’s any way to prove that seasonal home sales ever left. We’re taking the same data and interpreting it differently based on our own viewpoints. For example, when I look at your graphs for the past couple of years, the relative shapes are very similar. What that says to me is that there may be some level of a seasonal effect, regardless of how minimal the impact. To me, it looks like seasonality played a role in not making price “correct” at a quicker pace.

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