The Pasadena housing market continues to limp along on one leg. While this strategy seems to work well for Tiger Woods, it does not bode well if you are a property owner with a house to sell. Sales results for the month of June continue to confirm what we have seen year to date with (1) fewer home sales and (2) decline in the median sales price.

The June median price was $700,000, compared to $790,000 last year, a decline of 11.3%. Compared to Pasadena’s median price last month of $760,000, prices declined 7.9%. June is normally a strong month for housing as evidenced by last years median price of $790,000 for May and June. The fact that we experienced further declines this past month indicate that the housing market is continuing to soften.

The mix of units sold is changing. In June ‘07, there were 4 homes that sold below $500,000 ranging in price from $449.0 to $495. This year 10 homes sold below $500,000 with prices from $339.9 to $469.9. The low end of the market has re-emerged with sales of homes in the range of $500.0 to $999.0 slowing. Currently 504 units/properties are either active, pending or in back-up position resulting in approximately a 10 month inventory supply.

Pasadena Condo’s & Townhomes

Condo’s and Townhomes continue to lag and drag. They lag the units sold in comparison to the single family market and they continue to drag down the overall performance of the housing market with their larger declines in value. .Sales results for June indicate a median price of $477,500 which was down almost 17% from last June’s median price of $575,000 and we sold almost 50% fewer units. Compared to last month’s median price of $488,000, the median price declined 2.1%. We also have approximately a 10 month supply here as well with 319 units on the market today.

Median Price vs Average Price

I am often asked why we do not include an “average” price on our market updates. To me, an average price is not a good indicator of what is happening in the market. Here is an example. Currently the most expensive listing in Pasadena is a house for $52 million. If this house were to sell, can you imagine how the numbers would be inflated and thrown all out of proportion due to this one sale based upon an average? Median prices direct us towards the middle. Average prices tend to sku the results, either positively or negatively.

Ckick on the link to see all of the homes sold in Pasadena, South Pasadena, and Altadena for the month of June.

The data used for this report was compiled from the i-Tech MLS on 7/10. The data will only include properties listed in the i-Tech MLS.

Tags: pasadena ca homes for sale, pasadena california market update, pasadena california real estate, pasadena june market report, Pasadena real estate

May was an exciting month with the Phoenix Mars Lander arriving on the Red Planet. Its goal is to look for signs of life. Was there water on Mars? If the Mars Lander somehow became misguided and landed in the San Gabriel Valley, would it find signs of life in the Pasadena Real Estate market?

There does appear to be some activity as the positive signs indicate increasing unit sales in single family homes. Monthly increases this year are much smaller than in years past, but they are slowly on the rise and the gap between unit sales last year is decreasing. There is still some pricing weakness in the market as sellers have to offer bigger discounts to sell their home.

We are seeing the market for homes under $500,000 redevelop, thanks to foreclosed and bank owned properties. This month, 12 homes sold under $500,000 compared to only 3 in May ‘07. On the other end of the market, $1 million dollar homes declined with 17 sales this month compared to 27 last year.

Pasadena Townhomes and Condominiums

I recently recapped the Pasadena Townhome and Condominium building boom. Looking at the sales results in this area you have to ask “What were they thinking”? New multi-use projects are nearing completion and are targeted at upper end homebuyer’s.
Median sale prices are near 2006 levels and current inventory is close to a 10 month supply. Current sellers and developers are becoming more aggressive in an attempt to solicit offers from the declining pool of buyers.

Market to Level in July

Based upon the current trends, July should be the point we begin to see equilibrium as the decline became very pronounced last year. The market probably will not pick up; it’s just that the news reports will not seem so ominous.

Tags: pasadena california real estate, pasadena housing market report, Pasadena real estate

The Pasadena real estate market may be getting a pulse. After sales declines of 50% for the last three months, sales continued to decline but unit sales were of by a mere 28%, compared to April ‘07. Compared to last month, unit sales increased from 38 to 51 units or 34%. Looking at some other key indicators such as days on market, it is still talking much longer to sell a house this year, which probably explains why homes are selling at a greater discount compared to their asking prices as evidenced by the percentage of sale price to list price.

According to Altos Research, there are 487 single family properties for sale in Pasadena, indicating a 9.5 months supply, very indicative of a buyers market.

Condo’s & Townhomes

Sales of condos and townhomes also decreased 14% compared to last year, but unit sales continued to decline by almost 50%. Compared to last month units increased from 25 to 31 and sales prices were down about 2% from $470,000 to $460,000. Last year we saw an increase in activity in new units which helped propel the median prices in this category. Now with the slower market, condos and townhomes are returning to median prices seen in 2006.

We are seeing some of the same characteristics as the single family market, mainly condos and townhomes are selling at a bigger discount to their listing prices. Altos Research reports that 289 condos & townhomes are available for sale. With 31 reported sales in April, a 9.3 months supply of inventory exists. If you would like the latest research information on the Pasadena real estate market, email me, indicating single family or condo.

A list of all the homes / townhomes that were sold in Pasadena, Altadena and South Pasadena for the month of April is available at up2daterealestate.

Note: We have modified our “days on market” with two numbers, (1) is days on market for the current listing period, (2) represents cummulative days on market indicating how long a property has been for sale. For instance, a property may have been for sale for 60 days and did not sell and was relisted with a new agent one week later. Numerically it would read 1/61.

Tags: pasadena housing market, Pasadena real estate, Pasadena Real Estate Agent

If you have a property for sale and have been hopeful the market would begin to turnaround and show some signs of life, the March sales results will likely disappoint you. We have yet to see any sign that home buyers are returning to the market, choosing instead to wait and see if prices fall further.

Also in an earlier post this Pasadena Realtor emphasized that we would soon be able to chart the course of the Pasadena Real Estate market by focusing in on one key factor….inventory. That number, indicating the quantity of Pasadena Homes for sale has been rising for the last few days, just as I predicted it would based upon this time of year. However we are not seeing any evidence of a corresponding rise in home sales.

Single Family Unit Sales Decline 50%, Median Price Falls 12%

March becomes the third successive month in which unit sales have declined at least 50%, dashing any hopes that in 2008 we would begin to see a reversal of falling sales and prices. We are also beginning to see a greater disparity between median sales prices than we noticed previously.

And to add insult to injury, it is taking about 1 1/2 times as long to sell those 50% fewer units with the days on market increasing form 83 to 125 days.

Pasadena Condominiums & Townhomes Mirror Single Family

The data indicates that no particular segment is performing any better or is immune to the overall health of the economy or the market. Sales prices were recorded from the high $200’s to the high $800’s. Rare in the sense that prices have dipped below $300.0 and also failed to reach $900.0, or higher.

Last year we were seeing quite a bit of interest in some of the new projects going up around town. As a consequence, the median price increased for several months which was the antithesis of the overall market. Now we are beginning to see some of these buildings offer new incentives to buyers as the developers invent creative solutions to deal with inventory that is not moving.

Tags: pasadena california real estate sales, pasadena housing market, pasadena real estate market, pasadena realtor

There has been much talk and speculation about the housing market and what is happening to home values. And while we understand that prices rose dramatically in Pasadena during the last few years, it has been much harder to actually pinpoint where we stand today and what is likely to happen in the next few months.

Pasadena Median Home Prices

I looked at median home values by month from 2004 thru 2008. This recap included residential sales as reported by the i-Tech MLS and included single family, condos and townhomes. From the data it appears that the market began to loose its momentum in June ‘06. The median price hit $700,000 and there were sales of 149 units. Six months later in December we would have a slight pick up with the median price reaching $710,750 but this was only on 115 units and the increase was uncharacteristic for the month of December. Lastly, if you look at the December period for 2004 and 2007 you see that the values came closer together than any other time in this three year time period.

Recent Declines

It appeared that Pasadena had been able to withstand the negative news surrounding the housing market, at least up until the last three months. No matter how resilient our local market has been it appears that it finally succumbed to the external forces known as credit and liquidity. When the market sells 50% fewer homes for two months in a row it’s bound to have an impact on property values. Let’s preface that by also saying that Jan-Feb are usually lackluster months with little activity, so any reduction in volume will be felt much more in value.

Will We See a Turnaround Anytime Soon?

To understand the Housing market is to understand Newton’s Laws of Motion meaning (1) “for every action there is an equal and opposite reaction”, which defined means the boom cannot last forever. Booms are followed by “busts”, which is what we are experiencing now and (2) “a physical body will remain at rest or continue to move at a constant velocity, unless a net force acts upon it”. The Fed is throwing everything they can at this problem trying to stop the continuing slide, but before we can stop and reverse course, momentum will force us to glide for a while. Only after you come to a complete stop can you reverse direction. Since the states of California, Florida, Nevada and Arizona had appreciation that exceeded the national average; their real estate markets will see a slower recovery as evidenced by the just released February sales report.

2008 Projections

For the last few years the trend has been to sell fewer units. That trend will continue and we will see annual sales in the range of 1050 - 1100 units. The median price will begin to come down as some of the properties in the lower end of the market begin to sell spurred on by lower interest rates and increased affordability due to excess inventory. As we approach the spring - summer selling season we will see more impatience on the part of home sellers. The result will be more aggressive pricing in hopes of a quicker sale. Up until now most sellers have accepted the market conditions as the slow time of the year. In June, if the house is still for sale, sellers will begin to realize they must take the necessary steps to get the property sold.

In Conclusion

Here are a few thoughts to wrap this up:

1. The most number of homes that were sold occurred in 2004. Will home values have to revert back to 2004 prices before we see the housing market pick up?
2. When mortgage money was available and plentiful, people did not seem to care what they paid for housing. Now that we have to qualify and substantiate our loan application does this mean we are more likely to only pay for what we can afford?
3. Have area home prices just become too expensive in relation to income that people can no longer afford to buy homes.
4. And finally, if fewer homes have been sold every year since 2004, is there a correlation between rising home values and less prospective home buyers able to afford them?

In a surprise move the City of Pasadena announced today that it was canceling all of the homes listed “for sale” due to a lack of interest. Homeowner’s were instructed to remove all “for sale” signs on the property. Sales of single family homes have declined 50% for the last three months and the decision was made today before things could get any worse. One city official who ask to remain anonymous said that “if we can tell homeowners they cannot cut down their trees, we also believe we can put a stop to homes being listed “for sale”. We do not want values to decline any further, and this will protect other property owners who are not trying to sell”.

The above is only a tongue in cheek analogy of the current real estate market in Pasadena. Any reference to people or events is purely fictional.

February Home Sales

Were the problems in the housing market a window to the economy? When the housing market on the east and west coast began to contract, was the middle squeezed so hard that a recession was looming? According to the just released UCLA Anderson Forecast, a recession is not on the horizon. Rest easy Pasadena and California. Be assured with home prices falling, foreclosures rising, and no end in sight for the price of a barrel of oil, there will not be a recession. Glad we now have that settled. Academia has spoken.

2008 is off to a Slow Start

The part in the introductory paragraph about the rate of sales is correct. We have witnessed approximately a 50% decline in single family unit sales for the last three months. Not the kind of start we hoping for.

Single Family Homes Decline

The rate of decrease in the median price of a single family home was quite noticeable compared to months past. Call it a monthly trifecta. With a price decline of roughly 8%, a 50% drop in units and an increase in time of 35% to sell those fewer units, February was, somewhat expected if not predictable.

Townhomes & Condominiums

February also put a stop to the rising median price of a townhome and condominium. Buoyoed by the recent new construction, this segment of the market also felt the effects of a slowing market and overall uneasiness in the economy. Mirroring the single family category, sales declined close to 50% and also the median price dropped 5.3%.

What’s Next?

It will be at least May before we begin to see if the recently enacted increases in the conforming loan rates make any difference in the housing market and more importantly Pasadena real estate. Until then we will just have to be patient and hopeful that a return to normalcy will occur. At least we don’t have to worry about a recession.

Tags: pasadena february home sales, Pasadena homes for sale, Pasadena real estate

Pasadena home sales continued on the pace we have seen in the last few months with unit sales off 50% and a slight decrease in the median price of a single family home falling to $687,000. A decrease of 1.8% from last January’s median of $700,000. The market does not appear to be falling as much as it appears to be moving sideways, which is good news for Pasadena homeowners.

While it took 88 days to sell those houses, prices look fairly stable as indicated by the price to sales ratio. Homes sold for 99.8% of their asking price.

Townhomes and Condos

Sales of townhomes and condominiums were also off 50% from January 2007. The big difference here indicates Buyers in this market chose to go upscale, while the low end market continues to be besieged by the external factors affecting the housing market. Many banks and lenders are now requiring down payments of 10%. These guidelines are making it more difficult on people who may be attempting to qualify for their first home.

This market also indicateas that Sellers of high end units are becoming more aggressive in order to unload their properties. The list price to sold ratio was 94.71%, and much of it was targeted at transactions over $1 million. Three properties sold over the million dollar mark with some agressive price cuts, while January of 2007, there were no condo’s or townhomes sold over $1 million.

January and February have historically been very slow months in the real estate market. Even in the boom years. Hopefully we will get these new conforming loan rates approved and it will provide the housing market with a much needed boost.

Sales of single family homes in Pasadena, California continue to fall behind last year, but for the first time the median sales price declined to $725,000 in November down 4% from last years median price of $754,950. As stated before, we do see median price fluctuations in real estate from month to month, but we haven’t seen median price declines in a year on year basis. Apparently this is the first in quite some time.

Sales of Townhomes and Condominiums also fell behind last November in terms of the units that were sold. There were 29 units sold compared to 45 last year, a decrease of 35%. Despite the greater decrease in unit sales (compared to single family), the median price of a townhome or condo actually increased to $550,000 up from $494,000

The market for townhomes and condominiums appears to be more resilient as properties are showing fewer days on market and selling slightly closer to their asking prices. Home Sales for the month of November are now posted.

Tags: Pasadena home sales, Pasadena home values, pasadena housing market, Pasadena real estate

Even the South Pasadena Housing Market cannot escape the cloud that hangs over residential real estate. Sales for the month of October included 12 residential units compared to 11 last year. Since the small number of reported sales can skew the median price, we looked at what has happened over the last 5 months and prices seem to be flat. However under the current market conditions, sale prices that remain level with last year seem to be a positive sign.

To see a list of the homes that were sold in South Pasadena last month click the highlighted link.

Tags: South Pasadena housing market, South Pasadena housing statistics, South Pasadena real estate

The real estate news for October just seems to get worse. Not that it wasn’t unexpected, considering the current market conditions and the time of year. People just are not buying houses.

One of the primary decisions in the purchase of a home is how much the payment will be and the factor that determines that is the interest rate. Interest rates are very favorable these days. Lender’s have been offering 6 - 6.25% with no points for the past couple of weeks on a 30 year fixed rate conforming loan. Despite the fact that interest rates are historically low, most would be home buyer’s seem content to sit on the sidelines and see if home prices will fall as the result of the ever increasing list of foreclosures continues to grow.

Single Family Homes

Unit sales for the month of October were off 55% from last year. That is the biggest drop we have seen to date. Although the median price does show an increase over last year, it was down from $815,000 or close to 13% from last month. Median price swings are not that uncommon from month to month, but a 55% decrease in sales volume is dramatic.

Townhomes & Condominiums

Townhomes & condominiums were also affected by the October slowdown. This particular housing segment had faired well due to some of the new construction in town with the median price running around $550,000 for the past few months, but dropping considerably to $450,000 in October. Sales of townhomes and condominiums mirrored single family with sales declines in excess of 50%

What Effect is Real Estate having on the State & Local Economy?

You may have seen the article about upcoming budget cuts. You may not realize it, but when a property is sold, there is a documentary transfer tax applied. Here is Pasadena, it is usually paid for by the seller. It amounts to $1.10 per $1000 of valuation. An $800,000 sale price would generate a tax of $880. Now if every city in California is selling 50% fewer homes, you can begin to see the shortfall created on the local and state tax rolls.

The housing market has a tremendous amount of momentum, albeit negative momentum right now. And you have to hit bottom before you can begin to the climb back up. The question on everyone’s mind right now is “When will we hit bottom?”

Visit up2date for the latest information on the Pasadena housing market.