Pasadena up2date

Pasadena Real Estate Broker Featured on MSN

Assist 2 Sell — Mon, 15 Sep 2008 22:50:54 -0500

Anytime your work is recognized is recognized by your peers is an affirmation of a job well done, Anytime your experience is cited with a reference in a National news organization is confirmation that your knowledge and experience provides you with a level of authority, indicating that you have a special status in your area of expertise.

Deena Willis is a contributing editor of a Pasadena Real Estate Blog, and has also recently just obtained her Eco Broker certification. She was recently interviewed about her knowledge of Energy Ratings and Green Homes, by a reporter for MSN and an article which featured "5 Tip-Offs That Your Home is an Energy Hog"

Contributing to her understanding of home energy audits was the fact that she had a home energy rating completed on her own house. With the focus now on energy conservation and "green advantages", home energy audits are expected to become much more important to the home buying process. "A home energy rating is an excellent inspection to have. The report will make recommendations and provide approximate costs as to the recommended repairs and the resulting savings", said Deena.

We may soon see the day when the energy audit becomes as ubiquitous as the professional home inspection. People need to understand the efficiency of their heating and cooling systems and how much energy may be saved by completing some maintenance items and a few inexpensive repairs.

Pasadena Home Sales Report for August

Assist 2 Sell — Sun, 14 Sep 2008 22:27:01 -0500

The month of August has typically began the end of the summer selling season. However this August has been anything but typical. As a matter of fact, the real estate market for the last couple of years has been anything but typical. As we report the Pasadena home sales for the month of August we begin to see a couple of developments taking shape, one positive and one negative.

On the positive side, unit sales for the July-August period are the highest they have been all year. Could the fact that median home prices continue to fall have something to do with that? Median prices took one of the biggest monthly declines that we have seen in the last several months. As banks continue to deal with repossessed inventory, the market for homes in the high $300's and low $400's has reestablished, something we have not seen in quite some time. Median home prices for Pasadena real estate are levitating between 2004 and 2005 levels.

The specifics of the Pasadena real estate market has been recapped and offered in a new format this month. I think you will find the data easier to understand. Sometimes numerical data has a tendency to run together and can be hard to comprehend. This new slide format makes it much more understandable and I believe much more visually appealing.

Pasadena Homes August Sales Report

View SlideShare presentation or Upload your own. (tags: property estate)

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The Pasadena June Real Estate Market Report

Assist 2 Sell — Wed, 16 Jul 2008 12:46:09 -0500

The Pasadena housing market continues to hobble on one leg. While this strategy seems to work well for Tiger Woods, and the manner in which he won the US Open It does not bode well if you are a property owner attempting to sell a house. June home sales continue to confirm what we have seen year to date with (1) fewer home's being sold (2) a continuing decline in the median sales price.

June's median price was $700,000, compared to $790,000 last year, a decline of 11.3%. Compared to Pasadena's median home price last month of $760,000, prices declined 7.9%. June is normally a strong month for housing as evidenced by last years median price of $790,000 for May and June. The fact that we experienced further declines this past month is a good indicator the housiing market continues to soften.

Also, the mix of units sold is changing. In June ‘07, there were 4 homes that sold below $500,000 ranging in price from $449.0 to $495. This year 10 homes sold below $500,000 with prices from $339.9 to $469.9. The low end of the market has re-emerged with sales of homes in the range of $500.0 to $999.0 slowing. Currently 504 units/properties are either active, pending or in back-up position resulting in approximately a 10 month inventory supply.

Pasadena Condo's & Townhomes

Condo's and Townhomes continue to lag and drag. They lag the units sold in comparison to the single family market and they continue to drag down the overall performance of the housing market with their larger declines in value. June salaes results indicate a median price of $477,500 which was down almost 17% from last years median price of $575,000, plus we sold almost 50% fewer units. Compared to last month's median price of $488,000, the median price declined 2.1%. We also have approximately a 10 month supply here as well with 319 units on the market today.

Median Price vs Average Price

I am often asked why we do not include an "average" price on our market updates. To me, an average price is not a good indicator of what is happening in the market. Here is an example. Currently the most expensive listing in Pasadena is a house for $52 million. If this house were to sell, can you imagine how the numbers would be inflated and thrown all out of proportion due to this one sale based upon an average? Median prices direct us towards the middle. Average prices tend to sku the results, either positively or negatively and can be based upon one individual unit.

The data used for this report was compiled from the i-Tech MLS on 7/10. The data will only include properties listed in the i-Tech MLS.

Pasadena Real Estate Blog Announces "The Secret"

Assist 2 Sell — Mon, 09 Jun 2008 19:38:05 -0500

The content of this article holds the key to what so many have searched before. The text is not based upon speculation, not based on here-say, but rather predicated on market fact. Everyone has an opinion on the housing market. But when does fact supersede opinion/ And although the secret is a widely know belief, has it been proved beyond a reasonable doubt? . The key to selling your house in this current market will soon be revealed.

The basis for a successful property transfer was discovered in less than an hour. Not merely by accident like rubber and the telephone, but by proving a theory. There must be a correlation somewhere between why some experience success while others repeat failure.

Selling houses is not rocket science. There is no magic bullet, no formula that has been passed down through time. No one person or company has "the power", for if they did it would have been published long ago, allowing the keeper of the cup to cash out and make thousands of dollars on speaking and book publishing. Any experienced salesperson knows this to be true, although it is often a euphemism with talk of "an aggressive marketing program".

It Should Have Been Obvious

Sometimes we attempt to make things more complex. The secret to a property transaction being completed in a timely manner is simple. It should have been announced a long ago. In fact, we confuse the real issue with terms such as "staging", "curb appeal" and rosy laced language we forget we are selling real property, instead of trench coats for J. Peterman.

The Secret Announced

Your success or failure will be determined from the first day. When your house hits the market and has been announced "For Sale", your philosophy has been played and your motive announced.

For the key to maximizing your value, the difference between winning and losing all comes down to one thing........the listing price

The data analyzed was Pasadena California home sales for the month of May.

Price your house correctly from the beginning and two things are likely to happen:

It will sell for more money
It will sell in less time

When properties are listed too high, they tend to chase the market taking price reductions, ultimately selling for less and less of their asking price. The result is longer selling times, therefore reducing your value.

When the market is declining, time is money. The longer your home sits unsold, well I think you get the idea.

Before You Pass Go, Check for the Pasadena Occupancy Inspection

Assist 2 Sell — Wed, 04 Jun 2008 23:39:59 -0500

If you are buying Pasadena real estate, there is a good chance the property will be inspected by a city employee. A 6 page form will be completetd entitled “Housing Inspection Report”. Responsibility of the report and its findings can be negotiated through the purchase agreement. In other words who assumes the responsibility, the buyer or seller? The report includes the following:

Building & Structural
Weather Protection
Fire Detection/Protection, Exits & Safety
Natural Light & Ventilation
Heating and Mechanical
Plumbing
Pool Safety, Environmental Health & Sanitation
Use & Parking

The back page of the report speaks to Landmark and Historic Districts and also the City’s Tree Protection Ordinance.

The Intent of the Report

Most of the issues identified as “minor” violation can be easily addressed and corrected. These items require correction but not a reinspection. Other issues which are marked “major” require a reinspection. If you have completetd some remodeling such as converting a garage into an additional living space you will probably be ask to convert it back to its original intent. This would qualify as a “major” violation.

But what is the real purpose of this inspection? Many of my colleagues in the industry see it as a tax, a revenue enhancer for the city. The reasons cited are our neighboring cities such a Monrovia, Arcadia, San Gabriel, and South Pasadena do not require an inspection of this kind. The City of Los Angeles has an inspection but they have taken a different perspective and it is one I think the City of Pasadena should consider.

Pasadena’s Green Initiative, Lets Make it Work

Pasadena’s goal is to become a green and sustainable city. A goal we have written about at up2daterealestate. However, this has been adopted for commercial buildings and residential single family structures continue to fly under the radar. I have never been a proponent of introducing increased government intervention into the real property transaction. But water is a finite resource and it’s time we began taking measures to conserve it. Just last year the City of Pasadena called for strict conservation as a means to deal with our ongoing drought. We need to put some teeth into this report and include low flow toilets and shower heads in the inspection report, mandating that they be upgraded prior to closing escrow. The change in water usage is justification enough for the new provision:

low flow toilets - 1.6 gallons per flush compared to 3.5 gallons for standard
low flow shower heads - 2.5 gallons/minute compared to 4-5 gallons/minute for standard

As you can imagine, the water savings would be tremendous and I believe the adoption of the new requirements would be accepted throughout the community. Much more so than the proposed energy audit that was just passed by the California State Assembly.

Pasadena California and the Future of Eco Friendly Housing

Assist 2 Sell — Tue, 29 Jan 2008 20:03:33 -0600

The City of Pasadena California is attempting to promote itself as a green and sustainable community. This is a very desirable program to promote due to our declining natural resources and increasing demands for power and electricity.

In a fitting tribute to the City of Pasadena and its green initiative, we will soon begin to witness the construction of the Pasadena Eco House. This environmentally friendly structure is designed by architect Robert Mechielsen, and his company Studio RMA. Mr Mechielsen's goal when constructing a house is to design "Carbon Neutral Living Architecture". His designs are built to LEED design standards and incorporate building materials that use recycled and sustainable materials, are more energy efficient, offer greater fire resistance and can withstand hurricane force winds. In addition, they provide better sound insulation and can even eliminate termite and vermin problems. Now who wouldn't be interested in something like this? The other major factor and advantage is that an Eco House is very competitive with the price of new construction.

Most people's ideas of going green include changing a few light bulbs, placing your newspaper and plastic bottles in the recycle bin or turning your thermostat up or down depending on the season. There are so many wonderful new products and technologies in the market today that will be utilized in the construction of this house that can improve our standard of living.

Follow the ground breaking to completion as we bring you the construction details for the next few months. Get in depth reports form the prefabricated panels to the recycled glass counter tops and see how these products will produce a synergy not found in conventional housing. Hear the comments from the general contractor and architect as we follow the development of this pioneering project and see what impact it has on the future of housing. And finally, hear directly from the owner's themselves and why they chose to go green and what factor's lead to this decision. We feel very fortunate to be included in this project as we report on the Pasadena Real Estate market..

Rare Duplex in Pasadena's Madison Heights - For Sale

Assist 2 Sell — Mon, 07 Jan 2008 18:19:57 -0600

Properties of this size and character are very unique and rarely become available. First time on the market in 40 years this property offers 3 beds and 1.25 baths with approximately 1700 square feet on one side and two master suites adjacent on the other side in approximately 1600 square feet.

The owners side has been updated with central air and heat. The property offers updated plumbing, a newer roof, and tremendous charm and character. The other unit is occupied by tenants on a month to month lease. Thee is a detached two car garage and beautiful landscaped grounds.

Offered at $1,375,000 and Open Sunday, January 13, from 1-4pm

Foreclosure Update for the Pasadena Housing Market

Assist 2 Sell — Fri, 30 Nov 2007 17:05:20 -0600

In the current Pasadena housing market the only segment that is showing any growth has to do with the foreclosure market. Looking as far back as 1990 in Los Angeles County, foreclosure activity peaked in the third quarter of 1996 and did not begin to level off until approximately one year later. The foreclosure market hit bottom in the third quarter of 2005, but since then has been steadily increasing. When home prices are rising at 15 - 20% per year the amount of foreclosure activity is almost nonexistent as increasing equity can offset rising debt.

What is Happening in Pasadena?

The chart below indicates the amount of monthly foreclosure activity. For the most part, the foreclosure filings have steadily been increasing for about a year now. The activity appears to have peaked in August, however the data could be about to change. The largest number of adjustable rate mortgages are set to reset in late 2007 to early 2008 with many of those being subprime.

Foreclosure Activity by Zip Code

Analyzing the activity in Pasadena, the greatest numbers are found in zip codes 91103 and 91104. Overall there are 259 properties that are in some stage of the foreclosure process. These consist of single family, condo/townhome, multi-family or commercial. The majority are single family homes followed by townhomes or condominiums. This represents approximately 95% of the foreclosure market.

The zip codes of 91103, 91104, 91106 and 91107 represent 90% of the current activity and you can see how the numbers are growing month by month. Also many homes are in the initial "preforeclosure" stage. This means that the homeowner has missed one to several payments and a notice of default has been filed. This period will allow a property owner an opportunity to correct the situation. Sometimes a home is sold or refinanced while it is in the default process. The important thing for someone to understand is that there are options available. Most lenders do not want to foreclose and take the property back. The worst thing someone can do is to ignore a dire situation and hope it goes away.

The Pasadena October Market Report

Assist 2 Sell — Fri, 09 Nov 2007 12:15:57 -0600

The real estate news for October just seems to get worse. Not that it wasn't unexpected, considering the current market conditions and the time of year. People just are not buying houses.

One of the primary decisions in the purchase of a home is how much the payment will be and the factor that determines that is the interest rate. Interest rates are very favorable these days. Lender's have been offering 6 - 6.25% with no points for the past couple of weeks on a 30 year fixed rate conforming loan. Despite the fact that interest rates are historically low, most would be home buyer's seem content to sit on the sidelines and see if home prices will fall as the result of the ever increasing list of foreclosures continues to grow.

Single Family Homes

Unit sales for the month of October were off 55% from last year. That is the biggest drop we have seen to date. Although the median price does show an increase over last year, it was down from $815,000 or close to 13% from last month. Median price swings are not that uncommon from month to month, but a 55% decrease in sales volume is dramatic.

Townhomes & Condominiums

Townhomes & condominiums were also affected by the October slowdown. This particular housing segment had faired well due to some of the new construction in town with the median price running around $550,000 for the past few months, but dropping considerably to $450,000 in October. Sales of townhomes and condominiums mirrored single family with sales declines in excess of 50%

What Effect is Real Estate having on the State & Local Economy?

You may have seen the article about upcoming budget cuts. You may not realize it, but when a property is sold, there is a documentary transfer tax applied. Here is Pasadena, it is usually paid for by the seller. It amounts to $1.10 per $1000 of valuation. An $800,000 sale price would generate a tax of $880. Now if every city in California is selling 50% fewer homes, you can begin to see the shortfall created on the local and state tax rolls.

The housing market has a tremendous amount of momentum, albeit negative momentum right now. And you have to hit bottom before you can begin to the climb back up. The question on everyone's mind right now is "When will we hit bottom?"

Visit up2date for the latest information on the Pasadena housing market.

Pasadena Housing Report for the 3rd Quarter

Assist 2 Sell — Sat, 03 Nov 2007 09:51:00 -0500

Every month we recap the housing statistics in the Pasadena area and provide an analysis of what is happening with respect to home values and how they correspond with the overall real estate market. On a macro level, the Pasadena Housing Market appears to be holding up pretty well compared to other parts of California. Each month the median price of a Single Family Residence continues to increase and the number of units that are sold continue to decrease.

Sales for the third quarter continue to support this rationale:

However, if we begin to break it down by sales price and by geographical area, things aren't quite as rosy as they appear. Since Pasadena covers such a wide socio economic area and offers many different types of housing, can house prices still be increasing when there are fewer of them being sold?

Of the four area's of the City, home prices south of the 210 frwy seem to be holding up better than the ones to the north. The graph below shows that the Northwest and Northeast regions have declined considerably over the same period last year.

Northwest

There still seems to be a market for million dollar homes in this area, however there were only 6 recorded sales of homes under $699,000 this year compared to 29 last year. That has summed up the housing market in 2007. Homes less than $650,000 continue to sit unsold. There just doesn't seem to be any buyers in this market. Homes in this area are staying on the market well over 100 days. The median price in this area last year was $610,000, and since the market in has shifted to primarily million dollar homes, the median price has become an insignificant measurement.

An article recently appeared at the L.A. Land Blog in which Peter Viles ask his readers if they thought Los Angeles would be immune to a rise in foreclosure activity? In zip code 91103, there were eleven Notice's of Default filed in the month of September. The highest level of any Pasadena zip code.

Northeast

Currently indicating about a 1% decrease as the median price has gone from $725,000 last year to $717,500 this year. The decrease is attributable to homes from the $500.0 to $800.0 price range. 70 units were sold last year compared to 46 this year.

Southwest

Showing a healthy increase from $882,500 last year to $977,000 this year, home sellers in this quadrant have still been blessed with rising values. The important thing to note about the Southwest area is that there is also more of a homogeneity of home values in this area, where as the other three areas have a broader value range.

Southeast

Only region to show an increase in the number of homes sold. Also the median price increased from $835,000 to $897,500, about 7.5%.

Projections

As of today 385 Single Family Homes are for sale and 67 in escrow totaling 452 units. With only 42 homes sold in September, there is almost an 11 month supply. As we approach the end of the year it is hard to imagine things getting better anytime soon. There is no urgency in the market. Home buyers are very content to wait.

So, back to the question, "Are home values going up in Pasadena?" The unequivocal answer is "it depends". For the latest information on the Pasadena Housing Market visit up2date

"My Wife Hates Real Estate Agents"

Assist 2 Sell — Fri, 12 Oct 2007 18:12:27 -0500

How's that for a greeting?

Nice to see you as well.

I met with a couple the other day and was greeted outside by the husband. He immediately informed me that his wife had a tremendous dislike for real estate agents. Actually that is not news. Right or wrong, just or unjust, most people have an immediate opinion of people in the real estate profession. We're in good company though. Right up there with telephone solicitors, used car salesmen and lawyers. I don't understand how lawyers made it into this elite field.

Maybe I was being placed on notice, or I was in for the good guy bad guy routine. I'm thinking "who called who here"? They approached me. They ask me to come meet with them.

I learned early on in my career not to take anything personally. Many times people will chide you or say things to see what kind of reaction it solicits. There are very few things that anyone can say to me that I take personally or get upset with.

Maybe the deeper issue here is "Why do people have a dislike for real estate salespeople or salespeople in general? I have seen salespeople practice hit and run tactics including here today, gone tomorrow or anything to make a sale. Quite frankly I don't hold these people in high regard either, but that does not mean one size fits all.

A consultive salesperson, one that can truly advise you and represent your best interest is an amazing ally. Come to think of it that is the relationship you should have if you work with a Realtor. The reason is simple, a Realtor has an obligation to act in a fiduciary capacity.

So the next time you find yourself in a situation, a negotiation, a purchase decision or just plain conversation, ask yourself, "Is the other party looking out for my best interest, or their own"?

The Presidents Cup: Putting Human Back in Humanity

Assist 2 Sell — Sun, 30 Sep 2007 22:16:41 -0500

It happened this weekend in Montreal Canada. The top golfers in the United States competing against the worlds best international players. They come together every other year in the Presidents Cup to determine who will claim the title. These men play for much more than just a trophy. They are fierce competitors, all playing for the privilege of representing their country. They are representing us, the United States.

What is it about watching a golf tournament that instills a sense of pride and patriotism? Is it because golf was meant to be a gentleman's game? Is it because in golf, there is no referee, no umpire, the only person you have to convince is yourself. It's your conscience, and you take title to the consequences. Make a mistake and there is no team to provide back up, no manager to run onto the field to plead your case. There is no code of ethics, no one to tell you how to behave. All eyes are on you. The classic struggle, Man vs himself. You and only you. Be gracious in defeat and humble in victory.

Golf is a game which kids need to learn at an early age. Put the fundamentals aside for a while, let them learn life's lessons. Teach them about honor and integrity, teach them to respect and be complimentary of their opponent, teach them to have fun and that for every decision they make, it is a direct result of the choice they chose.

To learn to play golf is to learn a sport that is steeped in tradition. To see how someone plays golf can provide an insight into how they live their life. When was the last time you heard a professional golfer asking to be traded, or flaunting an accomplishment in his opponents face, or refusing to report to training camp because they did not like the contract they had previously agreed to? There is something about stepping onto a golf course with optimism and fascination, only to step off with frustration, but with an eager anticipation of your return.

Golf can be enjoyed by young and old alike, there are no age barriers. Golf epitomizes the American Dream, the harder you work, the better you get. A partner is not required for practice, your ability will be determined by your drive and motivation.

The golf that was played this past weekend is a tribute to sportsmanship. It was much more than just a sporting event. It is a lesson in how to conduct yourself as an individual.

And You Thought Low Interest Rates Led the Housing Boom

Assist 2 Sell — Sun, 16 Sep 2007 09:41:16 -0500

Today's Wall Street Journal has a preview of the new book by Alan Greenspan, entitled "The Age of Turbulence: Adventures in a New World".

In the book he speaks of several things including criticizing the current administration on its economic policy. Forget that, what I found interesting was his analysis of what has fueled the housing market over the last several years. I thought it was low interest rates, greedy lenders, unqualified borrowers, easy money and a mentality that the market would continue to increase. Turns out, according to Mr. Greenspan, it was the end of communism. The end of communism "unleashed hundreds of millions of workers on global markets, putting downward pressure on wages and prices and thus on long term interest rates".

According to Jim Cramer this is the guy who espoused the benefits of adjustable rate mortgages and then hiked interest rates 17 times in a row. But it was the end of communism that fueled the greatest bull market for housing we are likely to see in our lifetime. Wow, I had no idea.

To this, we owe a tremendous debt of gratitude to Ronald Reagan. Many people associate the end of communism with the way in which he negotiated with the Soviet Union, and it was never more evident than in the speech he gave in Berlin, in which he took Mr. Gorbachev to task. Little did we know then, that speech would ignite prosperity in the housing market and overall economy to the likes of which we may never see again.

I miss Ronald Reagan.

Pasadena "Notice of Defaults" on the Rise

Assist 2 Sell — Sat, 15 Sep 2007 19:44:15 -0500

We all have been hearing of how foreclosures, Notice's of Default and Short Pays are on the rise and having a negative impact on the real estate market. But how is this affecting us locally, or more specifically, the Pasadena Housing Market?

The above graphic only looks at Notice's of Defaults that have been filed. It does not necessarily mean that a house is going into foreclosure, only that the homeowner is delinquent in their payments.

Considering the overall number of homes in Pasadena, the number is relatively small, considering the month to month number of defaults filed compared to homes sold, the numbers are significant.

We will watch and see what happens within the next few months. Many of the reports I see in the media forecast this situation reaching its peak in early to mid 2008.

How Does This Happen?

Assist 2 Sell — Sat, 01 Sep 2007 22:14:14 -0500

Every once in a while, I am at a loss for words. I cannot come up with any reasonable explanation as to why something occurred. This is one of those times.

The above house is located in Pasadena, zip code 91107. It could be the "poster" house for what went wrong with real estate and how sub-prime lending (or the lack thereof) is affecting everyone across the board, from an aspiring home buyer to major banks and financial institutions.

A little history about the pictured house. A very ordinary 3 bed / 2 bath, with 1550 square feet on a lot size of 6700 sq ft., built in 1927. This is where ordinary ends.

This house was sold in June 2006 for a sales price of $549,000, fairly typical given the location and the condition. The buyer took out two loans, the first was $439,200 and the second was for $109,800 using 100% financing. In June ‘06 this financing was very common. Many home buyers chose an 80/20 loan, to avoid paying Private Mortgage Insurance.

Fast forward 3 months to September ‘06. The house is sold again. Many people bought and sold (flipped) to take advantage of a rising appreciation. However this house was sold for an astronomical profit. Care to guess, Buehler, anyone? The house sold for $850,000 an easy $300,000 profit or $100,000/month.

Again the house sold with 100% financing including a $680,000 first mortgage along with a $170,000 second. The mortgage company was identified as WMC Mortgage.

To make matters even more unexplainable, this house never appeared "For Sale". There wasn't a "For Sale" sign and there wasn't any evidence that it ever appeared in the local MLS. I want to talk to that agent who sold this house. They should be selling their secret on late night infomercials. There is millions to be made just by sharing the formula for success. This gives new meaning to the "Art of the Deal", no offense to The Donald.

I can tell you without any hesitation or batting an eye, there was not a $300,000 improvement made to this house. Things like this are not supposed to happen. The system has built in checks and balances, much like our Federal Government (okay bad example) that are supposed to question these types of transactions. What happened to the appraisal, where was the underwriting department, was everyone out to lunch?

Well, all good stories have a proper ending. This house has been vacant now for about two months and the Notice of Default was filed on July 5, 2007. If only someone would have thought to ask, "How does this happen"?

Pasadena Townhomes & Condominiums Maintain Momentum

Assist 2 Sell — Thu, 09 Aug 2007 13:08:43 -0500

July was a strange month for Pasadena real estate. The reason....Sales of townhomes and condominiums outpaced sales of single family homes. Rarely does this occur.

The market for townhomes and condominiums continues to prosper as new construction offers Buyers either the amenities or lifestyle they cannot find in a comparably priced home.

The median price of a townhome/condo was $575,000 compared to $850,000 for a single family. As recently reported, there is a weakness in the market for single family homes priced below $625,000, however this market represents 70% of all the condo/townhomes sold in Pasadena for the month of July.

In other areas the days on market showed an increase from 46 days on July ‘06 compared to 59 days in July ‘07.

Sellers also had to be more aggressive in July. Sales prices represented only 94.9% of their asking prices, indicating that the unit priced at $500,000, closed escrow at $474,450.

There are about 250 units for sale in Pasadena indicating about a five month supply of inventory.

Pasadena Housing Market Reflects Industry's Woes

Assist 2 Sell — Tue, 07 Aug 2007 22:54:58 -0500

The Pasadena Housing Market appears to be confused. The sales numbers for July reflect volume typically seen in January and February, not what you would expect for the height of what is supposed to be the home selling season. Unit sales of Single Family Homes were off almost 50% compared to last July.

The median price shows an increase over last year, which I feel is attributable to what is taking place in the market. The housing market for homes priced $700,000 and above is strong and Pasadena real estate is no exception.

The weakness as we have seen in the past few months is coming form homes priced below $625,000. There were only ten homes that sold last month that fall into this category. There is currently about one hundred houses on the market that are either "for sale" or in escrow in this price range, resulting in about a ten month supply of inventory.

To give you an idea of how the Pasadena Housing Market compares with years past, just go back to July 2004, and probably the peak of the market within the last five years. There were 130 single family homes sold that month.

Oh yes, the "good old days", gone are the days of easy money.

South Pasadena Housing Market - July Recap

Assist 2 Sell — Mon, 06 Aug 2007 22:00:15 -0500

The South Pasadena Housing Market bounced back from its dismal showing in June to a more moderate pace. Last year the market took it's dip in July, as opposed to this year in June. This is why its good to look at a minimum three month reporting cycle, so that the monthly volume swings have an opportunity to correct themselves.

Overall, there are fewer homes being sold in ‘07 as opposed to ‘06. This appears to be a fact, no matter which area you are in. However the South Pasadena market has been very resilient to some of the changes going on in the industry. One reason is the affordability factor in South Pasadena. Of the twenty homes sold in July, there were only three recorded sales under $650,000. Homes for sale that are priced below $650,000 seem to be feeling more of the slowdown in the market as Buyers find it harder to obtain financing.

South Pasadena has approximately a 3.75 month supply of inventory available for sale. By most accounts it can still be considered a Sellers Market.

I Wouldn't Pack Those Boxes Just Yet

Assist 2 Sell — Thu, 26 Jul 2007 18:16:06 -0500

Your house has been for sale now going on 60 days along with many other houses here in Pasadena and you just accepted an offer. Congratulations, time to start packing all those personal items, right?

You might wait a few days before making that trip to the box store and here's why. When a Seller places a home on the market "For Sale", they are 100% committed to sell it (most of the time, I have seen some exceptions). When a Buyer has a purchase contract accepted they are usually 50% committed to buy it. Notice a disparity here?

Our purchase agreement drafted by the California Association of Realtors provides for a seventeen day contingency period. Contingencies are provided to the Buyer for a number of issues including obtaining a loan, appraisal of the property, investigation of the condition along with insurability, other reports and disclosures made by the Seller or ordered from a third party, the preliminary Title Report, common interest or HOA documents and maybe even the sale of the Buyers property. This is the time in which a Buyer has to perform their due diligence. Home Buyers should be using this time effectively by obtaining as much information as they can about the property and its condition. If they plan to make repairs or changes, now is also a good time to be obtaining quotes from contractors.

When I mention this to FSBO's they look at me and say "Huh"? A purchase agreement is a complex document involving hundreds of thousands of dollars, and unless you do it everyday you just don't know what you don't know.

During this seventeen day period, most Buyers will pay for a Professional Home Inspection, we strongly recommend it and most agents I know highly encourage it. These usually cost in the neighborhood of $250 to $500 depending on the size of the property and the scope of the inspection. This is analogous to going to your family doctor for a check up. If they feel anything warrants further investigation, they will refer you to a specialist. A Home Inspector will refer you to a plumber, electrician, soils engineer, fireplace specialist, etc., if they feel some area of the house warrants further investigation.

It's been a short or long seventeen days depending on your outlook and now its time for the Buyers to make their decision. Do they go forward with the purchase or have they discovered something in their inspection process that may make them change their mind? After all, that word contingency means 50/50, maybe they will, maybe they won't, who knows?

In the next installment of this story, we will take a look at how this ongoing saga can come to a conclusion. We will also look at ways a Seller can reduce this contingency period and their resulting anxiety.

Should The Real Estate Industry Be FULL Disclosure?

Assist 2 Sell — Mon, 23 Jul 2007 14:00:29 -0500

An editorial appeared last Friday in the LA Times entitled Not-so-open houses. Seems that the "Times" is critical of the decision by the Southern California Multiple Listing Service to modify the information available to consumers by removing the "days on market". The So Cal MLS is one of eight, Multiple Listing Services in the greater Los Angeles area. Houses listed for sale in Pasadena, typically do not appear in the So Cal MLS.

The question here is, "Should everything about a house for sale be public information"?

We already know when the Seller purchased the house and can easily find out what they paid for it. For that matter, we can also find out what is owed against the house. This information is not readily available in all states, but it is in California. If knowledge is power, does it leave the Seller that much more exposed to publish how long the house has been for sale? The implication here is that if Buyers have this information, they can assume a house is overpriced if it is not selling or that a Seller may be more motivated to sell and willing to accept an offer, even if it is well below the asking price.

Let's consider a simple analogy. Suppose you walk into the department store to buy a new suit or the car dealership to buy a car. On the price label, there is a date that the merchandise was purchased, and the price the store or dealer paid was there as well. Other industries don't readily offer this information, why should real estate be any different?

I have run across people who seem to think that real estate agents are responsible for the high housing prices we have here. Our Listing Agreement states that the owner of the house will make the decision on what price the house should be offered for sale, not the broker. By the way, these high housing prices have been a tremendous source of wealth for many home owners here in Southern California. If you have tapped your home equity line of credit, you know what I mean.

The bottom line is, "Should Real Estate be full disclosure, identifying every nuance along with the Sellers financial information", in order to sell a house? The Seller can always say no to any offer, but then again so can the Buyer.

It's Time For an Intervention, a Divine Intervention

Assist 2 Sell — Thu, 19 Jul 2007 14:04:22 -0500

In a previous post, I wrote about Divine Intervention and how a particular Seller thought that a higher power had somethng special in mind for them.

Could it be possible that divine intervention could play a roll in the Pasadena Housing market?

These particular Sellers felt that they would eventually sell their house at their asking price, even though it had been on the market several months. Furthermore, many of the other houses in this area had reduced their asking price, but these sellers were holding firm, believing that they had something very special.

Well a couple of months of inactivity can make you realize that your house is not as special as maybe you thought it was. Reality begins to finally set it.

And then, out of nowhere, a sign appeared.

Mohammed mentioned, Buddha bequeathed, Jehovah justified, God gave, and Allah advocated a (drum roll please) price reduction. The house formerly priced in the mid $600's has taken a 6% price reduction to the low $600's.

Let's just ignore the facts.

Consumers will make their decisions based upon whatever sound or ill conceived process they go through to come to a conclusion. Buying decisions are based on emotion and then rationalized with facts, real or perceived. People will put their most expensive asset in the hands of a real estate agent, and then just ignore the advice offered throughout the transaction. Until they hear it from their circle of influence, nothing gets absorbed, and although well intended it can have the adverse effect.

You don't change belief's, you change perceptions and perception is reality.

So I think one thing the real estate community needs is an anthem, a battlesong. Doesn't music soothe the soul? My choice is Norman Greenbaum's Spirit in the Sky. If only I could make a small recommendation, change the name to "Real Estate Agent in the Sky".

Pasadena Housing Market Recap - Single Family Sales Results

Assist 2 Sell — Mon, 16 Jul 2007 19:52:21 -0500

An analysis of the Pasadena Housing Market indicates that the market has slowed and the word "patience" has kept back into home sellers' vocabulary. However, Chicken Little is nowhere in sight.

This analysis looked at Single Family Residences' from January to June. Sales compiled from 400 + transactions indicate that the market is not moving forward or backward but holding steady in terms of pricing. The median price continues to be $750,000, which is the median price we recorded for the same period last year. Considering the overall state of the national housing market, I think Pasadena has performed very well. To be even with last years numbers speaks well to the local economy.

In terms of the number of houses that are selling, fewer are being sold this year vs. last and they are taking longer to sell.

The other factor looked at was what percent of Sale Price was achieved when compared to List Price. As you can see from the graphic below, the data indicated that sellers are accepting less than asking price. This corresponds with the increased times seen with "days on market". As a house takes longer to sell, sellers are realizing they must be more competitive on price, and are accepting price reductions.

Actually, the June Sales results almost mirror what we are seeing on a six month basis. The next few months should show if this becomes a trend.

In the next article, we will examine the Condominium and Town Home market and see how it compares with the sales of Single Family homes.

Pasadena Reports Fewer Sales of Single Family Homes

Assist 2 Sell — Fri, 13 Jul 2007 19:48:17 -0500

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.

New Construction Powers Pasadena Condo Market

Assist 2 Sell — Thu, 12 Jul 2007 15:41:08 -0500

The Pasadena Condo Market seems to be ignoring all the publicity about the slowing housing market. Unit sales were up 20% and the median price increased to $575,000 compared to $470,00 last year.

If you have had the opportunity to drive through town, you have seen some new construction going on and chances are it may be new housing additions. There are several new complexes for sale on Green St, Chester Avenue and Union St., with prices starting in the mid $500's and up into the mid $800's. There seems to be a trend towards more luxurious and more expensive units.

Despite the growth in this particular segment, there did appear to be some softening in sales prices. Sales indicate on properties that were sold, achieved 97.86% of their list price compared to 99.27% last year. While they are selling for less than asking they are also taking almost twice as long to sell. The days on market increased from 39 last year to 72 this year. A pretty strong correlation could be made from the increased "days on market" to the 97.86% of sales price to list price. The longer a property stays on the market generally indicates that pricing may become more competitive.

Looking at the map below, most of the growth is coming from Pasadena's Southeast area, which is west of Marengo and south of the 210 freeway.

The Northwest area continues to lag behind other parts of the city and as we have seen in past months, it seems more susceptible to the housing slowdown.

This analysis looked at condominiums and townhomes and did not include single family or income properties. The source of the data was the i-tech MLS.

South Pasadena Housing Market Takes a Breather

Assist 2 Sell — Wed, 11 Jul 2007 17:33:51 -0500

South Pasadena is often thought to be somewhat immune to the typical ups and downs of the real estate cycle. However in June it showed that if the rest of the area has caught a cold, South Pasadena has the sniffles. June is typically the time we begin to see the Summer selling season kick into high gear, but this year it failed to show up. It didn't even make an appearance. There were only 9 recorded home sales for June 2007 compared to 25 last year. Why the dismal June? It can be hard to quantify. For a home to be sold in June, it would have probably gone into escrow late April or by the end of May. A slight up tick in interest rates may have kept the lid on home sales.

Also if you look at the absorption rate with approximately 67 homes for sale or waiting to close escrow, there is currently about a 7.4 month supply of inventory which is high for the area.

I would caution anyone against reading too much into the latest sales numbers. One month does not a year make. There is also some encouraging news. The 2nd quarter data does indicate the median price is still rising, albeit much more slowly. However a small increase in today's slower market is very positive news.