Home sales for the month of July were released yesterday. I wondered if I should just end this story here or continue on. I decided to go ahead and slug it out. There are two numbers here, the sales compared to last month and the sales comparing July ‘10 to July ‘09. Take your pick, neither number is very positive. The one month change form June ‘10 to July ‘10 produced a decline of 27%, and the 12 month change from July to July produced a decline of 25.5%.

Prognosticators were quick to point out the decline was due to the federal tax credit expiring. If this is the case then I guess the opponents of the tax credit were correct several months ago when they proclaimed the tax credit would only serve to move up purchases, not increase them. It appears the tax credit was a complete disaster, at least from a macro economic point of view.

All Real Estate is Local

What most of us here are concerned with is how are things here in Pasadena? The National Housing Report uses single family, condos and townhomes. I analyzed the sales of Pasadena Condos and Townhomes last week, so this analysis only looks at Pasadena single family homes. While it is true fluctuations do occur on a local level, these exceptions are very often mitigated by influences outside of current environments. It reminds me of an analogy used in boxing “beat the body and the head will fall”. The economic news delivered a gut punch to the housing market in July and even smelling salts in the form of lower interest rates couldn’t help the market regain its footing.

Housing Indicators

Inventory

There were 49 more units for sale in July than there were in June resulting in a 16% increase. Compared to last July, inventory increased by 78 units or 28%. Unsold inventory of single family homes in Pasadena also reached a 4.7 months supply. Growing inventory is a strong indication of a slowing market

Sold Homes

Again looking at month to month, July home sales were 6 fewer units than June, but 20 fewer units than last July which was about a 21 % decrease. A slight offset to the lower monthly sales numbers were “pending” units. They increased by 8 units or approximately 11% from June to July.

Most articles I have read blame the nations housing woes on unemployment indicating housing strength will not return until we see the unemployment numbers decline. So much for the hypothetical correlation which thought the strength of the housing market was dependent upon low interest rates. Could interest rates be any lower? So much for the correlation which linked housing and affordability. Housing prices have come down probably 20% to 30% from their highs 4 years ago. Strike Two. The new correlation for the housing market coincides with the employment picture. If people are working and feel secure about their prospects for continued employment, housing will prosper.

Tags: Home sales for Pasadena, Market Reports Pasadena Single family, Pasadena Home Sales Decline

Frustrated by all of the home search options available these days? Would you like to receive either email updates or do you prefer RSS feeds?

Search all Homes for Sale in Pasadena, South Pasadena, Altadena and all surrounding areas

Looking for a single family home with 3 beds and 2 baths with 1600 square feet in the Pasadena zip code of 91104?

Want to keep it between $600,000 and $700,000 square feet? Very easy to set up.
How about a condo in South Pasadena between $450,000 and $500,000? Want to try and buy below market and think you may be interested in a bank owned home in Altadena? Its all here for you.

The search results below are from a search I created for pre-foreclosures and bank owned homes in the Pasadena zip codes of 91104 and 91107. Here is how you can customize and create your very own search:

1. In the upper left hand corner of www.up2daterealestate.com you see a map of Pasadena, click it. It is just below the logo on this page.
2. The search screen pops up with menu options on the left.
3. Enter a city or zip code.
4. Click in the box below and enter a price or move the sliders.
5. The next options will limit the properties you will see. Unless you are very specific, don’t be too precise with your parameters.
6. Property Types – enter single family, condo, etc.
7. Foreclosures – tab will show you bank owned or pre-foreclosures and short sale properties.
8. Click “SEARCH”
9. Properties that meet the guidelines and criteria you have selected will now populate on the screen with an easy to read map interface.
10. To see complete listing information and more pictures, click the picture of each listing.

Set up your account and elect either email or RSS updates and have your home search come to you. When you find something you like, give us a call. We would appreciate the opportunity to help you find your next home.

You can also bookmark this page. This search will remain intact.

Tags: Bank owned and foreclosure properties in Pasadena, Customized home search, Search for homes in So Cal, Search short sales and bank owned homes

An email arrived last week informing me that voting had begun and my real estate blog up2daterealestate had been nominated for the “Peoples Choice Best Real Estate Blog”. I immediately prepared my preparatory speech proclaiming what an honor it was to be nominated. Considering there are somewhere in the range of 2500 real estate agents that belong to the Pasadena Board of Realtors, being 1 of 5 nominees was indeed a compliment.

The timing of the award wasn’t exactly working in my favor. We have been busy searching for a new office location and attempting to sign a lease as we prepare to open our new RE/MAX office in South Pasadena. I am glad to report that we are now in the final stages and will soon be announcing the Grand Opening.

Fortunately or unfortunately, a blog is like a house plant. You have to constantly feed it so it will grow and improve your search rankings or it will slowly wither as it becomes forgotten. Not posting any recent articles for several weeks tends to diminish what you work so hard to obtain, which is a loyal following.

One of the benefits of writing about our Pasadena Real Estate Market is that it does require preparation which includes analyzing, charts, sales history and trends. It allows you the opportunity to make better, more informed decisions because it does require some time and studying what is actually taking place as opposed to formulating an opinion based upon the latest rumor or economic news. Facts are indisputable, but the interpretation of what those facts will mean in the future is debatable.

If you have enjoyed what you have read here over the last three years we would appreciate your vote. Just click the logo and it will redirect you to Zillow. Give the page a couple of seconds and the poll will pop up. Vote for up2daterealestate. We would really appreciate it.

I remember it was my freshman year in college when we were introduced to Rene Descartes, who proclaimed ‘I think, therefore I am”. However in my situation, “I think, therefore I blog.”

Tags: Pasadena's Best Real Estate Blog, Zillow announces Pasadena real estate blog, Zillow's Contest for best real Estate Blog

There are some tell-tale signs that the economic slowdown affecting the national real estate market may slowly begin rolling into Pasadena. If this is the case, look for Townhomes and Condominiums to be the first victims. Our market which has been more resilient than other area’s throughout the country began exhibiting signs in July that may indicate some softening.

To give you an idea of the size of the market; In the past 12 months (August 09 – July 10) sales of condominiums and townhomes have totaled 550 units, compared to 829 single family homes within the City of Pasadena. For every two Townhomes / Condos sold, three single family homes are sold. Also about 21% of the units for sale (active & back up) are distressed properties, meaning they are either a short sale or bank owned.

Market Snapshot – Left graph

Two closely watched indicators declined from June, the number of sales and the number of units that entered “pending” status. There were about the same number of new listings for the month, but since there were fewer sales, actual inventory rose due to less units being absorbed.

Sold and Percent – Middle Graph

The critical component in this exhibit is the price sellers are receiving for their property. This shows the actual selling price compared to the listing price expressed as a percentage. In July, we see the value dropped to 94%, its lowest level since January which is typically the slowest month of the year. If a product was listed for a dollar, it sold for .94 cents. This indicates sellers must be willing to be more aggressive with their pricing and realize they will be selling for less money. Another sign of a slowing market.

Inventory Levels – Right Graph

Inventory jumped to over a 6 month supply which was a result of the poor sales in July. Inventory had been steadily declining as sales had been increasing, but when sales begin to slow during what is usually a high volume month, inventory consequently rises.

How long is the wait?

The other factor that has to be considered is the unusually low cost of money. With interest rates around 4.5%, one would normally assume a higher level of activity in the housing market. As I have always stated, one month does not a year make, so we will continue to see if the market does begin to slow down or is just catching its breath.

One last thought, I think if you see a slowdown in the housing market, you will begin to see it affect other areas. It would not be limited to just housing. Take notice the next few times you go to Starbucks or Costco and how long you stand in line. Store traffic is a great indicator of the strength or weakness in the overall economy.

Tags: market information on Pasadena condos, Pasadena condominium market update, Pasadena townhome and condominium home sales

A new baby, a promotion at work, a separation or divorce, the loss of your job, or seeing the kids off to college. All of these are life changing events and will quite possibly have an impact on where you live and the place you call home.

Most anytime you have one of these fortunate or unfortunate experiences, your home and its disposition begins to enter your thoughts. A home is a representation of our lifestyle and many times factors beyond our control will influence our decisions on where and what we will call “home”.

Home is the emotional anchor and environment that shapes our childhood and defines who we will become as adults. As we age, it becomes a wealth of memories to a past that seems like it was only yesterday.
My mother has lived in the same house for over 45 years and although it has undergone many changes over the years it is still referred to as home.

Some of the original neighbors still occupy their homes as well. Despite the fact that I have been gone for 30 years, a very strong emotional attachment remains. When I am back that way (the time between visits seems to be getting longer) I also enjoy driving by Grandma’s old house. When we were kids we would receive a Kennedy .50 cent piece under our plates as we sat down to Thanksgiving dinner. Years later it was also the last time I would see my Grandfather as he was in the final stages of cancer. Our homes can represent the best life has to offer, or the sad and unhappy events that accompany and complete the cycle. A dichotomy we would gladly give up.

The Housing Progression

As we move through the stages of our lives, our home is an integral part of the responsibilities we’ve obtained. In the college years our lives are marked by only a few commitments as we have a last chance to enjoy our youth. Our financial undertakings can be as simple as our housing needs. A 6 to 12 month pledge and you’re free to go.

Life begins to take a major turn once the kids start arriving. One day you wake up with the realization that your needs aren’t just about you anymore and that two bedroom condo now seems very inadequate. Its time to think about school and a yard, a place to play. This is the point where you begin to remember the conversations your parents had with their friends and now the realization begins to set in……you’re there. A milestone you thought would never be reached is here, front and center.

Our homes are our sanctuaries. They reveal so much about us whether it be expressed or implied. Be it ever so humble, there’s no place like home.

Tags: home, Our homes, The emotional attachment to our home