Sales of single family homes continued to slow for the month of June. There were fewer units sold this year compared to last and also increased evidence of a softening market in terms of pricing.
When fewer units are being sold and it is taking longer for those houses to sell, that's a pretty good indication that prices may begin to show some vulnerability. There is a saying in real estate that "all markets are local". What applies to one market may not necessarily apply to another. We actually see evidence of this here in the Pasadena housing market with some houses selling very quickly and others taking much longer. Their locations can be as little as just a few streets apart.
The data indicates a house listed for sale at $500,000 last year would sell in 39 days and actually sell for $503,350. This year that same house would take 59 days to sell and close escrow at $491,400.
The chart below shows the regions of Pasadena where most of the activity is occurring.
The single family housing market was somewhat overshadowed by the excitement in the condo/townhome market. It's quite possible that someone in the market for a new home has decided that a condo or town home is more suited to their lifestyle.
While our market is a little slow, we are still in a very good market by most standards. There is just over a 4 month supply of inventory that is available for sale. Many parts of the country could only hope for 4 months.
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