Property Concierge

Pasadena Residential Real Estate Report for April

Posted on May 20th, 2009 by Doug Willis

The month of April has historically been the kickoff of the spring selling season. Home sales, usually dormant during the first couple of months of the year begin to gain momentum before finally beginning to slow down as we head into fall. The $64,000 question this year will be “Has stability and predictability returned to the Pasdena real estate market or are we in for another year of low volume and declining prices”?

Most of the key housing indicators are pointing to less volatility. Looking at the amount of inventory, the monthly sales, median prices and the number of homes going into escrow, consumers are expressing confidence that the housing market is on its way back. Maybe the bigger question is what actually constitutes “normal”. In the last 8 years we went from 0 to 120 and back to 0. We went from bull to bear with no in between. Apparently we are on the entrance ramp attempting to get back into the flow of traffic.

Home sales for the month of April were right at 100 units. I think if this volume could be maintained then you will see the housing market recover, and we might even see volume of 120 units around the June – August time period.

Interest rates which are currently around 5% will be the key to housing market salvation. If they begin to increase all bets are off. Once rates begin to rise, homebuyers head for the sidelines and take a “wait and see” approach.

The housing statistics are recapped in the slideshow below. Sometimes housing data can be pretty dry, so I have tried to jazz it up and make it more interesting. There is a small icon in the lower right hand corner that will allow you to increase the size of the presentation.