APRIL 2009 HOUSING STATISTICS
April housing statistics issued by the California Association of Realtors showed a second consecutive monthly increase in median home price in Los Angeles County.  The April month-to-month increase was a very modest 1.9% following a year and a half of declines.  The year-to-year comparison shows a 31% decline in median price.  The sales volume shows the effect of bargin pricing on short-sale and foreclosed housing.  The month-to-month volume increase was 9.7% while the year-to-year increase was 43.1%.  The large increase in sales volume and small increase in median prices reflect the strong demand among bargin hunters for properties that represent good investments for first-time buyers and those acquiring rental properties..

There is a feeling among local Realtors that the San Gabriel Valley market is firming up.  The inventory of available homes in Pasadena has continued to decline from a high point in 2008 of almost 800 properties to just above 500 in May 2009.  Our normally busy Spring season has been very slow for new listings.  As a result, properties that are priced according to the market as obtaining offers very quickly.  In many cases, there are double-digit multiple offers on a well priced property.  

There are some worrisome signs on the horizon.  A recent report by the Mortgage Bankers Association states that 12% of homeowners with a mortgage are behind on their payments or in foreclosure.  The recent moratorium on foreclosures is ending and there is an expectation of a significant influx of short-sale properties and foreclosure sales.  With the spending and borrowing patterns of the Federal government, we have seen a recent increase in interest rates.  While rates remain very attractive when viewed against historic mortgage interest rates, speculation that rates will rise much higher increases pressures to buy now and will likely negatively impact the housing market in the future.

Keep in mind that as the volume of sales declines, the fluations in median price will increase.  Key San Gabriel Valley city median prices and the year-to-year percent increase in median value include:

Altadena   $350,000   -42.2%
Arcadia   $689,090   -8.0%
Azusa   $255,000   -23.9%
Duarte   $300,000   -30.2%
La Canada/Flintridge   Insufficient Data
La Crescenta   $473,454   -13.9%
Monrovia   $375,750   -21.7%
Pasadena   $460,000   -25.8%
San Gabriel   $455,000   -5.2%
South Pasadena   Insufficient Data
Temple City   $525,000   -0.5%

Source: California Association of Realtors and DataQuick Information Services


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Sharon and Rick Stever