July is just around the corner, 6 months have passed in Pasadena Real Estate.  Here are single family attached & detached home sold in the first quarter of 2010 reported to I-Tech MLS.

• In January 2010, 27 of 50 closed sales were at list price or over.
• In February 2010, 24 of 47 closed sales were at list price or over.
• In March 2010, 26 of 62 closed sales were at list price or over.

The stats show that in Pasadena Real Estate, the sales are arriving very close to asking price.  We have seen many listings receiving multiple offers and sold right after the Broker Open House. 

Yes, it is true.  Properties are going into escrow in less than 7 days. 

Couple weeks back, I walk into a Broker Open House on 2385 E. Woodlyn in Pasadena, CA. Very attractive Mid-Century home in the NE area. I jumped with excitement; perfect for my client.  I tell my client to see the house. I call the office for the status and it was IN ESCROW. By the Open House ended on Sunday, an offer was accepted.

Last week, 484 E. California #43, a stunning looking condo in Madison Heights area of Pasadena, CA came on the market. After the Broker Open House an offer was accepted.  The showing started on THUR, 6/17, and by the Open House on June 20, it was GONE INTO ESCROW.

Another great unit in South Pasadena, 1972 Huntington Drive (shows really well) went on the market last week, had a Broker Open House on 6/17 and they have two offers now.

There are REO and short sales, and market has changed dramatically.  But buyers have to know that there are "MICRO-MARKET" within LA County.  Just because prices have decline does not mean that it is going to be in all cities of LA County.  Pasadena and South Pasadena both area very desirable cities, and if a home is priced well and looks pretty & handsome, it will be GONE, GONE, GONE.  And there are a lot of junk out there too.  Do buyers really want to get on there hands and knees, tackle a fixer these days?  When you see enought junk, you are going to start looking for a nicer home that you can pretty much walk into and make a new start. 

And, talk about multiple offers. My good friend at Coldwell Banker is seeing multiple offers each time she writes an offer. Right, multiple offes are back with vengeance.

Buyers, make sure you are in touch with your agent, and don't wait around.  You could be waiting a long time, a very long time for your Home Sweet Home in this interesting market of year 2010.

Well, we hear so much about how important credit is when it comes to securing a mortgage.  Good credit is CRITICAL when working towards getting best rates and terms.

1. Don't Apply For New Credit.  Evey tme you have your credit checked, you can lose points from your credit score immediately.
2. Don't Pay Off Collections or Charge Offs. If you want to pay off old accounts, do it through escrow and make sure the debt is yours.  Request letter for deletion from the creditor.
3. Don't Close Credit Card Accounts.  If may appear that your debt ratio has gone up when account is closed.  It could also affect in the score and history.
4. Don't Max Out or Over Charge Credit Card Account.  Try to keep credit card balances below 30% of their limit. If you pay down, do it across the board.
5. Don't Consolidate Your Debt.  When you put your debt together on one or two cards, it will appear as you are maxed out on that card.  You may get penalized too.
6. Don't Do Anything That Will Cause A Red Flag By The Scoring System. This includes adding new account, co-sign, name change/address with the credit bureaus.
7. Do join a Credit Watch Program.  You can monitor your status and if something strange shows up, you can take care of it ASAP.
8. Do Stay Current On Existing Accounts.  If you get a one 30 day late notice, it can cost you.
9. Do Continue To Use Your Credit As Normal. If it appears that you are changing charging patterns, it can also creat a Red Flag.
10. Do Get Help From Loan Officer.  Your loan officer is a great source to get info on credit reporting.

Above information has been provided by Ambassador Capital/Pasadena, CA

Values have declined close to 33% from the 2^nd quarter of 2006 through April 2009.  The low interest rates, lower home prices, tax perks and long term advantages of homeownership have first time buyers bouncing off the fence to check out the housing market.

Even though the real estate market wiped out many housing wealth through November 2009, there are advantage to own a home. If enough equity is gained in the home, you could borrow from the home for special needs (college, retirement home, etc.)  There is also federal tax advantage which makes the home mortgage debt less costly than other loans.

Mortgage rates are still very favorable at about 4.88% for a 30 -year mortgage.  The rates will probably increase but should continue to stay low throughout this year.

Many have bought, as home sales in November accounts ½ of home sales by first time buyers.  However, there is a lesson to be learned from the previous housing crisis.  Just because everyone is doing it, does not mean you need to buy a home.  Buyers must make sure if it is right time for them to buy.  Buyers must investigate their job situation first to make any consideration.  Economy is getting better, but unemployment is still high on the horizon.

Also, many homeowners got into a mess because they bought way more that what they can afford.  To avoid the mistake, first time home buyers should not pay more than 30% of their monthly household take home pay to housing costs (which includes principal, interest, tax, and insurance combined).

Owning a home comes with other added expenses aside from utilities.  You are responsible for "everything" that comes with your home.  If the A/C does not work, you have to pay for repair, not the "landlord" anymore. You are the landlord.  You have to make sure you have rainy-day expenses set aside for many surprises to come (like plumbing, roof leak, etc.)

Getting a low interest rate could be a challenge for first time home buyers.  Banks have raised the standard very high to qualify buyers to obtain home loans.  Buyer will probably need a FICO score of 720+, full documented income and assets.  If buyers cannot meet the standard, they could apply for FHA home loan.  With FHA, borrower can put down 3.5% versus higher down payment.

Take time to research for home.  First get pre-approved to make sure you know how much you can buy.  Next, check the website to search for homes in the area of your interest.  Great websites are Zillow.com, Realtor.com, Trulia.com and Redfin.com.

Lastly, first time home buyers should find a Realtor who can be patient and provide the attention needed.  You must feel comfortable with the Realtor. The Realtor should be accommodating and show homes that fit your needs, and price range.  They should not pressure you in anyway.  Ask a lot of questions during the purchase process.  I recommend referrals from relatives, friends and co-workers who have bought and had a good relationship with the Realtor.

18725 Arrow Hwy Unit 41, Covina, CA  91722

2 Bedrooms, 2 Bathrooms

Offer at $199,800

Best priced townhome-style condo in Covina. Perfect for First Time Buyer and Investor.  Bright and airy rooms. Fireplace in the living room. Immaculate, wellmaintained complex with many trees & blooming flowers. Pool, Spa, and Club House.  Special Unit - one of the 2 units situated in the back of the complex (very private).

Your 2 parking spaces are steps away from the unit w/storage space. Beautiful serene views from master bedroom balcony. Spacious, enclosed patio (newly painted fence) is perfect for entertaining. There are new light fixtures in both bathrooms, new kitchen sink, and newer garbage disposal installed. FIOS ready (newly installed in March).

Included in sale: Washer/Dryer (220v), Refrigerator (w/ice and water dispenser), stove/range. Recently installed water heater. Direct TV Dish Ready. Unit has generous storage spaces. HOA pays water & trash. Minutes to shopping area, bus line, and commute to Downtown-take Covina MetroLink.

I am in the middle of listing a condo priced under $200,000. This unit is perfect for a FHA buyer.  So, I am learning about the new FHA rules that took place this year.

The minimum down payment increase to 10% down for borrowers with a credit score of 580 or below. The upfront mortgage insurance premium is to be raised to 2.25% from 1.75% (which requires congressional action).  It also reduced seller's contribution from 6% to 3%.

For those with not-the-best-credit will be impacted with the 10% down payment, and also the reduced seller concessions which often pays for closing costs like title insurance and lender origination fee.

However, these changes are meant to manage a healthier FHA which accounts for about 40% of national mortgage market.  It is going to make a stronger FHA capital reserve, and be able to manage risk better than in the past.

This is "Altadena Fast Fact" for 2/27/2010.

There are 72 Active Listings on the PFAR MLS (single family attached/detached).

Lowest priced active: $229,990 - 2485 Saint Pierre, 2bed, 1 bath

Highest priced active: $2,998,000 - 2217 Crescent Drive, 5 bed, 7 bath

As of 2/1/2010:

• 14 Closed Sales
• 17 Pending Escrow
• 8 Expired Listing
• 3 Cancelled Listing

Checking the MLS today, Altadena market showed:

• 70 Active Listings
• 18 Pendings as of 9/1/2009
• 35 Closed Sale as of 9/1/2009
• Lowest Price Active $249,900  (597 Crosby Street)
• Highest Price Active $3,500,000  (2212 Crescent Drive)
• Lowest Price Sold $205,000  (335 Crosby Street)
• Highest Price Sold $1,500,000 (1533 E. Altadena Drive)

Many home owners put off making energy-efficient upgrades because of cost and believe there is no way they can afford it.  Well, maybe you can do those improvement you have been dreaming of.  It may be time to "stop" the stop.  Energy-efficient mortgage program (EEM) and new tax credit for upgrades could help you out.

EEM lets home buyers or owners the ability to finance cost of adding energy-efficient features to new or exiting homes as par tof the FHA-insured purchase or re-fi mortgage.  EEM has been around since the 1980's but under used.

This could be the best time for home owners to think seriously about upgrades that will help lower the utility bills and increase value of your home.  The maximum the FHA allowed was $8000 and that was recently modified.  Now the maxium amount of portion of the EEM for improvements is to be lesser of 5% of the value of the property or 115% of the median area price of a single family dwelling or 150% of the conforming Freddie Mac limit.  Also, under the stimulus plan, upgrades are eligible for tax credit of 30% of qualifying costs up to $1500 but this is only through 2010.

EEM are sponsored by federaly insured mortgage program and conventional secondary mortgage market.  To get started, you need to have a CHEERS rater (called CHEERS which is California Home Energy Efficiency Rating Services) or another approved rater to give you an analysis, and get a report.  The report will be submitted to the lender.  The report will show the current condition of the home, and savings after upgrades.

Energy Auditor Sites:

The California Building Performance Contractors Assn. www.cbpca.org/homeowners/index.html

CHEERS - California Home Energy Efficiency Rating Services www.cheers.org

CalCERTS, Inc  www.calcerts.com/index.cfm

Other useful sites for more info:

Energy Star www.energystar.gov

Find out about the FHA and EEM http://portal.hud.gov/

FHA lender list  www.hud.gov/ll/code/llslcrit.cfm

Here are NEW LISTINGS in Altadena (as of 7.27.09).  There are some pretty stunning looking homes in the $1,000,000 range.

 *Information from Itech MLS, can change w/o notice.