Pasadena Single Family Home Sales Dip in July
Home sales for the month of July were released yesterday. I wondered if I should just end this story here or continue on. I decided to go ahead and slug it out. There are two numbers here, the sales compared to last month and the sales comparing July ‘10 to July ‘09. Take your pick, neither number is very positive. The one month change form June ‘10 to July ‘10 produced a decline of 27%, and the 12 month change from July to July produced a decline of 25.5%.
Prognosticators were quick to point out the decline was due to the federal tax credit expiring. If this is the case then I guess the opponents of the tax credit were correct several months ago when they proclaimed the tax credit would only serve to move up purchases, not increase them. It appears the tax credit was a complete disaster, at least from a macro economic point of view.
All Real Estate is Local
What most of us here are concerned with is how are things here in Pasadena? The National Housing Report uses single family, condos and townhomes. I analyzed the sales of Pasadena Condos and Townhomes last week, so this analysis only looks at Pasadena single family homes. While it is true fluctuations do occur on a local level, these exceptions are very often mitigated by influences outside of current environments. It reminds me of an analogy used in boxing “beat the body and the head will fall”. The economic news delivered a gut punch to the housing market in July and even smelling salts in the form of lower interest rates couldn’t help the market regain its footing.
Housing Indicators
There were 49 more units for sale in July than there were in June resulting in a 16% increase. Compared to last July, inventory increased by 78 units or 28%. Unsold inventory of single family homes in Pasadena also reached a 4.7 months supply. Growing inventory is a strong indication of a slowing market
Again looking at month to month, July home sales were 6 fewer units than June, but 20 fewer units than last July which was about a 21 % decrease. A slight offset to the lower monthly sales numbers were “pending” units. They increased by 8 units or approximately 11% from June to July.
Most articles I have read blame the nations housing woes on unemployment indicating housing strength will not return until we see the unemployment numbers decline. So much for the hypothetical correlation which thought the strength of the housing market was dependent upon low interest rates. Could interest rates be any lower? So much for the correlation which linked housing and affordability. Housing prices have come down probably 20% to 30% from their highs 4 years ago. Strike Two. The new correlation for the housing market coincides with the employment picture. If people are working and feel secure about their prospects for continued employment, housing will prosper.
- Pasadena Avg Price Sq Ft
- Inventory of SF Homes
- Pasadena Single Family Stats
Tags: Home sales for Pasadena, Market Reports Pasadena Single family, Pasadena Home Sales Decline














