South Pasadena Home Sales June 2010

Over the last couple of weeks I have been commenting on home sales in Pasadena, noting that sales have begun to soften and market statistics have been reflective of what was happening on a national level. As is the case, the Pasadena housing market is not an indication of what is necessarily going on in South Pasadena.

Months Supply of Inventory

Take inventory or the number of homes for sale as an example. In Pasadena, inventory increased by 27% from June to July. For the same period, inventory only increased by 3% in South Pasadena. However we need to quantify this number and add some perspective. The past 12 months in Pasadena produced sales of 829 Single Family Homes. In South Pasadena this number represented only about 15% of the market size or 122 unit sales of Single Family homes.

South Pasadena Home Prices per Square Foot

There are several ways to gauge housing market activity. Individually each measure may produce results that are misleading until you have an opportunity to do further investigation. This often leads to an explanation such as “things aren’t exactly as they seem”. In other words, just reading the headlines without the full article may present a distorted and an inaccurate view of current results. Sales price per square foot can often be misleading. The mix of houses which are sold can have a big impact on this measurement. By most accounts, sales per square foot decreased from June to July. In South Pasadena, the numbers were $471 in June, but decreased to $424 in July. Pasadena had the same experience with $391 in June, and $388 in July. Keep in mind however there were 11 recorded home sales in South Pasadena in June and 12 in July. Pasadena recorded 82 home sales in June and 76 in July. Due to the small number of home sales in South Pasadena, monthly variations can be proportionately much, much wider.

The Number of Homes for Sale

One of the best indicators of a slowing housing market is the increasing amount of unsold inventory. Remember, one month does not a trend make. However, when trends develop based upon 2-3 concurrent months and also upon a “this year” versus “last year” basis, its more than just an unexplained monthly blip. This is one area where Pasadena and South Pasadena apparently find some coexistence. Inventory increased 16% for both cities on a month to month basis. The 42 single family homes which were for sale in South Pasadena were the highest monthly level based upon the last 15 months.

What’s Next

The issue that has many analyst concerned about a slowing market is based upon a couple of indicators that normally indicate a very bullish market. Mainly, interest rates are very attractive and people’s housing dollar is going much further. Low interest rates translate into more affordability bringing more people into the housing market, typically. This time of year market conditions dictate we should be witnessing increased activity. Economic conditions however are overriding conventional wisdom.

South Pasadena Single Family Homes For Sale

Take a look at all homes in South Pasadena for sale.
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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.

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