Warning: preg_match(): Compilation failed: invalid range in character class at offset 4 in /home/customer/www/pasadenarealestateguide.com/public_html/wp-content/plugins/lightbox-plus/classes/shd.class.php on line 1384

Warning: preg_match_all(): Compilation failed: invalid range in character class at offset 4 in /home/customer/www/pasadenarealestateguide.com/public_html/wp-content/plugins/lightbox-plus/classes/shd.class.php on line 700

Warning: Invalid argument supplied for foreach() in /home/customer/www/pasadenarealestateguide.com/public_html/wp-content/plugins/lightbox-plus/classes/shd.class.php on line 707

Warning: preg_match_all(): Compilation failed: invalid range in character class at offset 4 in /home/customer/www/pasadenarealestateguide.com/public_html/wp-content/plugins/lightbox-plus/classes/shd.class.php on line 700

Warning: Invalid argument supplied for foreach() in /home/customer/www/pasadenarealestateguide.com/public_html/wp-content/plugins/lightbox-plus/classes/shd.class.php on line 707

Housing Trifecta Returns to Pasadena


Warning: preg_match(): Compilation failed: invalid range in character class at offset 4 in /home/customer/www/pasadenarealestateguide.com/public_html/wp-content/plugins/lightbox-plus/classes/shd.class.php on line 1384

Warning: preg_match_all(): Compilation failed: invalid range in character class at offset 4 in /home/customer/www/pasadenarealestateguide.com/public_html/wp-content/plugins/lightbox-plus/classes/shd.class.php on line 700

Warning: Invalid argument supplied for foreach() in /home/customer/www/pasadenarealestateguide.com/public_html/wp-content/plugins/lightbox-plus/classes/shd.class.php on line 707

Warning: preg_match_all(): Compilation failed: invalid range in character class at offset 4 in /home/customer/www/pasadenarealestateguide.com/public_html/wp-content/plugins/lightbox-plus/classes/shd.class.php on line 700

Warning: Invalid argument supplied for foreach() in /home/customer/www/pasadenarealestateguide.com/public_html/wp-content/plugins/lightbox-plus/classes/shd.class.php on line 707

Pasadena home sales which have been on the decline for the last few years have apparently bottomed out and are beginning to show some positive signs. Unit sales for ’09 were 1362 units compared to 1097 for 2008 and increase of 24%.

Total Annual Home Sales in Pasadena

Total Annual Home Sales in Pasadena

What Homes Were Selling?

The market also shifted in terms of price points and the values at which homes were sold with lower price homes comprising a bigger market share of the overall volume. Homes under $600,000 were 64% of overall home sales in Pasadena. In 2006 that number was 42%. It’s not that the under $600,000 market was the just the price of choice, but it is also an indication of the Pasadena housing dollar going further as well as mortgages were much easier to obtain. Many home buyers found that mortgage money available in the $750,000 and above price range was harder to find, especially in the first half of 2009, but conditions began to ease as the year progressed.

Stability Returns

One of the positive signs of 2009 was the consistency of the monthly sales volume. Going back to 2005 and 2006 there was much more of a seasonality factor.

Pasadena Monthly Unit Sales - Residential Real estate

Pasadena Monthly Unit Sales - Residential Real estate

Homes sold in the spring and summer. Last year we really did not see the peaks and valleys in the sales cycle. There were several months where unit volume was centered around 100 units, a good indicator that consumer confidence had returned.

Interest Rates, Home Prices and Time

The adage in real estate has always been location, location and location. However, I think its time we should give careful consideration to introducing a new housing trifecta.

  1. Interest Rates – home prices here in Pasadena are much higher than national averages. As a consequence interest rates have a bigger impact on affordability since we typically borrow more money to pay for our homes. Interest rates this past year have been very low by historical standards, therefore people could qualify for more house.
  2. Home Prices – I think its safe to say home prices have fallen around 20% from their historical highs compounded with the increasing rate of foreclosures. Home prices were more favorable and affordable in 2009.
  3. Time – it takes time to heal a broker heart and for housing markets to recover from the initial shock and bad news that precipatates declines. We spent 2008 adjusting to the shock. When 2009 rolled around home buyers were ready to get back into the market to take advantage of lower rates and prices.

There is much speculation as to the economic recovery and the manner in which it will progress. Lets hope the housing market takes on the “V” shape with 2008 being the bottom and 2010 building on the momentum we have just experienced.

About Doug Willis

I see so many properties listed for sale that have absolutely no creativity or marketing plan. They are compromised by a poor description, terrible photography and a real estate agent that doesn't understand how to sell a property. If the most important issue to you is getting your home sold, allow me the opportunity to meet with you and show you the results a real marketing program will produce.

Speak Your Mind

*

*
To prove you're a person (not a spam script), type the security word shown in the picture. Click on the picture to hear an audio file of the word.
Anti-spam image