If you've been reading my Pasadena blog for awhile, you know that I've been seeing multiple offers on Pasadena homes for the last month or so. I have been hearing from home buyers, especially first time home buyers that are getting ready to buy their first Pasadena home, on a daily basis.
With Pasadena interest rates under 5% for a 30 year fixed loan, government home buying incentives and lower home prices, consumers are coming to the realization that now is the time to buy.
Has the Pasadena real estate market hit the bottom?
No one knows for sure because the only way you truly know is when the market starts going up. Read "one sure way to know when Pasadena real estate market hits bottom."
We can always observe real estate trends and look at data to see what kind of real estate activity is taking place. Reviewing real estate reports very carefully gives us an indication of where the market is heading. In real estate, investors come out first and start setting the trend and individual home buyers follow.
Let's take a look at the last three months of Pasadena Real Estate statistics to see what the numbers are showing us.
Pasadena Real Estate Statistics and Home Sales data for January through March 2009:
|Single Family Residence||Jan-09||Feb-09||Mar-09|
|Average Days on the Market||130||120||93|
|Average Price Per Sq. Ft.||$333||$348||$349|
|Average Selling Price||$548,981||$548,151||$687,300|
|Median Selling Price||$505,000||$470,000||$542,500|
|Absorption Rate (# of weeks to sell current inventory at present rate of sales)||37.0||35.7||21.7|
|Average Days on the Market||113||177||136|
|Average Price Per Sq. Ft.||$379||$325||$315|
|Average Selling Price||$427,950||$342,577||$391,946|
|Median Selling Price||$207,450||$337,000||$337,250|
|Absorption Rate (# of weeks to sell current inventory at present rate of sales)||158.6||68.3||26.0|
|Average Days on the Market||115||135||173|
|Average Price Per Sq. Ft.||$349||$342||$338|
|Average Selling Price||$ 436,991||$ 455,200||$ 494,583|
|Median Selling Price||$ 462,500||$ 375,000||$ 485,000|
|Absorption Rate (# of weeks to sell current inventory at present rate of sales)||26.4||71.9||18.5|
Information above is from ITEC (Pasadena Foothill Association of Realtors Multiple Listing Service)
There are several key points that jump out at me when I look at these numbers:
- The housing inventory is falling in every category - Pasadena homes, Pasadena condos and Pasadena townhomes. In a normal real estate market the inventory will pick up as we get closer to spring and summer months. The number of newly listed Pasadena properties stays the same, but the number of Pasadena home sales almost doubled in March 2009.
- Absorption Rate - a key real estate statistic - is significantly lower for each of the tracked categories. Absorption rate is an indicator that sellers use to anticipate how long it will take to market their homes for sale. For example, looking at Pasadena single family homes, a Pasadena home seller should understand that if the rate of sales and current inventory remains the same, it will take them on average 21.7 weeks to sell their home. That's a significant drop in home marketing time from 35.7 and shows a trend towards getting back to a more balanced real estate market.
- The most significant change in pricing is seen at the Pasadena condo level. Now is the time to get excellent Pasadena condo deals. The price per square foot on a Pasadena condo is at an all time low of $315 per sq. ft. Take a look at Pasadena's real estate market analysis for the last five years and you'll see that we're back to 2003 price levels.
If you are a buyer looking to buy a condo in Pasadena California, take a look at the available listings below.
Search all Pasadena Condos for Sale in MLS (Multiple Listing Service):
For property details on the above condos, you may also visit Pasadena condos and townhomes for sale.
Search all homes (single family residences) for sale in Pasadena MLS (Multiple Listing Service):
For Pasadena foreclosure details, please visit Pasadena foreclosures for sale.
If you are thinking of buying a Pasadena home, Pasadena condo or townhome, please give us a call for a comprehensive and free consultation. We can be reached at 626-629-8439.
IRINA NETCHAEV & ASSOCIATES
Pasadena Real Estate Agents