In our last report we noted that 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 were right, and we think the same advice is sound for the spring selling season. Here is what happened in March:
The number of homes for sale in Pasadena increased to the highest level since November. Even so, the inventory level dropped to two months of supply. That is because of the faster pace of sales. The inventory number says that if nothing came to market, all existing homes for sale will be gone in two months at the current rate of sales.
Last year in March, the number of homes for sale was 20% less than this year, so the better numbers are not just against the last couple of months but compared to last year too.
The number of sales is up too, almost to the level of October after a four month slump. Last month we noted that the number of homes that went into escrow during February was signaling a turnaround in the softening trend. We seem to be right, and March followed suit with a big jump in new escrow activity – up over 34%! Expect sales activity to continue to increase.
Another number that confirms the upward direction is the average price per square foot of sold properties. Prices measured in this way increased last month – a bit under one percent –but are on track to increase 12% for the year. The average price per square foot in Pasadena stands at $478 per square foot, up almost 25% from a year ago. We told you that the sales price decline in January didn’t mean that prices are necessarily falling and the trend shows we are right so far.
Further studies show that the median price of a Pasadena sold property rose again in March, 15% over the same month a year ago, and about three percent from last month. The median price is the price where half sold lower and half sold higher.
So, March overview: Every indicator is very positive for a very strong spring season We said that March was going to be a key month for the spring season and perhaps the year. We now are very certain that demand, sales, prices and outlook are strongly positive.
See our April report in Mid-May. Send a request for a monthly email report to NeighborhoodNews@AroundTownPasadena.com