If you are a homeowner in Pasadena and you are thinking of selling then think about now – weather is great, spring season is beginning, and if you price your home correctly, expect multiple offers over the asking price… we have seen bids 20% or more over listing prices in the last few weeks. Notwithstanding our observations from the day-to-day view, here is what the numbers said for February:
Homes For Sale
The number of homes for sale in Pasadena was little changed from last month or last year in February. The number of homes for sale was highest in October, and sort of bobbed in place during December, January and February. Many are keeping their homes off the market because of the shortage of replacement homes.
The number of sales continues to decline – with a continuing slump to a lower number than any month during the last year. One interesting number is the number of homes that went into escrow during February, up almost 22%, while new listings declined about 4%. From what we see day-to-day, and the increased pending sales, we may see a turnaround in the softening trend.
Prices per Square Foot and Median Prices
Another number that points in the upward direction is the average price per square foot of sold properties. After a drop of almost six percent from December to January, prices bounced back, up almost 11%. And, at $477 per square foot for the average Pasadena sale, that is the highest number of the last year, up almost 18% year-over-year.
We told you that the sales price decline in January didn’t mean that prices are necessarily falling. It’s better to look at the year-over-year figures and the trends over the year. The annual trend line for average price per square foot now looks more positive… a flat period from September through January, followed by a jump. Next month’s figures will be very interesting to see.
Further studies show that the median price of a Pasadena sold property rose also in February, 16% over the same month a year ago, and more than 9% from last month. The median price is the price where half sold lower and half sold higher.
Number of Days on the Market and Inventory of Homes for Sale
Another mixed signal is the average number of days on the market… this number was lowest in May, at an average of 42 days. The January figure was 63 days, and in February the market time to sell a home was up again, to 70 days.
Couple this number with the inventory of homes for sale, which is now higher than at any time since 2012. There are 3.1 months of supply on the market. The inventory is up from 1.8 months in December, to the current supply. We think that increased inventory is a good sign.
So, February overview: Fewer sales but more went into escrow. Fewer new listings, but more inventory. Prices up. March is going to be a key month for the spring season and perhaps the year.
See our March report in Mid-April.