Sales results for the month of April indicate that residential units were down about 23% vs. April 2006. There were 99 units sold for April 2007 compared to 128 units sold for the same period last year.
However, a closer look at sales by area indicates that Pasadena Real Estate is still doing quite well. Pasadena is broken down into four geographical areaÃ¢â‚¬â„¢s as follows:
Of the four areas, the Ã¢â‚¬Å“SoutheastÃ¢â‚¬? seems to be doing the best with sales up 10% over last year. Two other regions, the Ã¢â‚¬Å“Northeast and SouthwestÃ¢â‚¬? are showing smaller declines. The area bearing the brunt of a slow down is the Ã¢â‚¬Å“NorthwestÃ¢â‚¬? with year to date sales
This area is predominantly lower priced homes, many in the range of $500,000 to $600,000. Homes are staying on the market longer and home sellers have been reluctant to lower the price of the home to get it sold. This is not just a problem exclusive to NW Pasadena. Altadena also saw home sales drop to 17 units in April Ã¢â‚¬Ëœ07, compared to 33 properties that were sold in April Ã¢â‚¬â„¢06. Again, many properties on the market in that
$500.0 to $600.0 price range.
South Pasadena on the other hand with its higher home values has seen sales remain fairly constant, selling 14 units in April ’07, compared to 12 in April ’06.
It seems that a case can surely be made that the ever tightening mortgage market is having an adverse effect on this segment of home buyers. There just seems to be fewer of them to go around to keep up with the number of houses available for sale. I also heard this week that the screws will continue to tighten on undocummented loans. Our markets move in cycles, and now it looks as if we are going to go through a period of over correction before things get better.