LA Rose Bowl Cities Home Sales Down
Posted: Saturday, January 30, 2010
by Lori English
Lookie Homes
The Los Angeles Rose Bowl cities of Pasadena and South Pasadena have some disappointing numbers in, not encouraging news for that area's real estate market. The Rose Bowl cities are struggling in this economy. The prices have been lower with not as many properties on the market. According to the Los Angeles MLS database (MRMLS), single family residence home data shows that median prices in December 2009 have decreased since December 2008 by 14%. It appears Pasadena and South Pasadena are in store for possibly a rough 2010.
This recent downward trend in house prices help investors and buyers purchasing these homes at great values. The number of foreclosure sales as a percentage of the entire resale market has continued to drop since the peak in February 2008. Foreclosures will continue to be in large numbers for years, but not as high as this last year. Homeowners are still walking away from their homes, especially now since home prices are continuing to drop. This next year will be interesting to see how much lower these home prices will continue to fall.
It is recommended that first time home-buyers take advantage of the $8,000 Home-Buyer Tax Credit that is still in effect. This is an excellent time to purchase a Pasadena or South Pasadena house with such low prices and a tax credit that certainly helps out. Be advised that there will be bidding wars in the next few months, as the tax credit will most likely be coming to it's end. There is also a lower inventory of Los Angeles homes on the market compared to the previous year, so you'll be seeing more buyers out there competing to get that low price in this real estate environment
The Average Days on Market for December 2009 is currently at 79 days, in comparison to 81 days back in December 2008. It appears to be flat, no real variation in the number of days it takes to sell. It comes out to 2% less time compared to last year's Average Days on Market. If home sellers price their homes correctly and have a home that is desirable, they will be able to sell their homes even in this sluggish home market.
The Pasadena and South Pasadena Monthly Supply of Inventory has more than doubled since last December. In December 2008, there was a 10.1 month supply of home versus in December 2009 a 22.1 month supply of homes. This means that there was a 119% increase in inventory, or 12 months. This is in sharp contrast to Los Angeles beach city inventory decreasing by 75% in the same time period.
The Supply and Demand has also had a large decline in numbers. The total homes for sale in December 2009 declined 43% from the same period last year. In December 2008, there were 552 homes for sale versus only 315 homes for sale in December 2009. Sold houses for the same period was 75 for December 2008 versus 14 for December 2009. These supply and demand figures appear to tell us that buyers are still wary of listing their homes for sale in this down economy.
The year 2010 is due to be a better year, according to all the hyped news reports out there. The first-time homebuyers and investors still play a significant role in this uncertain real estate market. Due to the continuation of the $8,000 Home-Buyer Tax Credit and deeply discounted foreclosure homes, 2010 may be a better year for home sellers and home buyers alike.
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