Comments on: South Pasadena Real Estate – 3rd Quarter up2date Report http://www.up2daterealestate.com/2008/10/17/south-pasadena-real-estate-3rd-quarter-up2date-report/ Brought to you by Doug and Deena Willis Thu, 25 Feb 2010 17:30:52 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Hannah B http://www.up2daterealestate.com/2008/10/17/south-pasadena-real-estate-3rd-quarter-up2date-report/comment-page-1/#comment-2469 Hannah B Thu, 23 Oct 2008 17:53:18 +0000 http://www.up2daterealestate.com/2008/10/17/south-pasadena-real-estate-3rd-quarter-up2date-report/#comment-2469 I agree with Tim, just because this area has not fallen, doesn't mean it won't. Just the opposite. I realize that real estate is local, but it just doesn't seem likely that somehow South Pasadena will magically escape the carnage going on in the housing market. The problems we've had have all resulted from irresponsible loan products so people of all walks (sub-prime, alt-a, prime jumbo) could "afford" more home than their incomes could support. With traditional loan standards and fundamentals, average income as well as above average income buyers couldn't afford to buy here. That just leaves the way above average income buyer. But honestly, not a huge percentage of people, even in LA, make over $250K. And how many of them can there be that want to live in average neighborhoods (no offense, South Pas). Not me. I agree with Tim, just because this area has not fallen, doesn’t mean it won’t. Just the opposite. I realize that real estate is local, but it just doesn’t seem likely that somehow South Pasadena will magically escape the carnage going on in the housing market. The problems we’ve had have all resulted from irresponsible loan products so people of all walks (sub-prime, alt-a, prime jumbo) could “afford” more home than their incomes could support. With traditional loan standards and fundamentals, average income as well as above average income buyers couldn’t afford to buy here. That just leaves the way above average income buyer. But honestly, not a huge percentage of people, even in LA, make over $250K. And how many of them can there be that want to live in average neighborhoods (no offense, South Pas). Not me.

]]> By: Tim K. http://www.up2daterealestate.com/2008/10/17/south-pasadena-real-estate-3rd-quarter-up2date-report/comment-page-1/#comment-2422 Tim K. Tue, 21 Oct 2008 20:10:25 +0000 http://www.up2daterealestate.com/2008/10/17/south-pasadena-real-estate-3rd-quarter-up2date-report/#comment-2422 In South Pasadena zipcode 91030, the AGI for tax year 2005 was $91K. Since the home prices still appear to be selling at 10X annual income (900K), it appears that this area has not significantly moved from its pricing since irresponsible lending took place. I know your report does not claim to predict the future, and only reports on existing conditions, but I would bet that this the one place that would be most likely to go down with the upcoming loan resets, which are set to peak in 2009 and 2010. The only other way that home prices would stay this high is if the incomes of people who live in this area were to rise 3X, so that the average yearly income was closer to $300K. You might be implying that could happen, and I suppose it is possible that South Pasadena is now attracting only attracting much richer folks. In South Pasadena zipcode 91030, the AGI for tax year 2005 was $91K. Since the home prices still appear to be selling at 10X annual income (900K), it appears that this area has not significantly moved from its pricing since irresponsible lending took place.

I know your report does not claim to predict the future, and only reports on existing conditions, but I would bet that this the one place that would be most likely to go down with the upcoming loan resets, which are set to peak in 2009 and 2010.

The only other way that home prices would stay this high is if the incomes of people who live in this area were to rise 3X, so that the average yearly income was closer to $300K. You might be implying that could happen, and I suppose it is possible that South Pasadena is now attracting only attracting much richer folks.

]]> By: Real Estate Market Reports - A Beach Recovering? — Real Estate Market Reports http://www.up2daterealestate.com/2008/10/17/south-pasadena-real-estate-3rd-quarter-up2date-report/comment-page-1/#comment-2375 Real Estate Market Reports - A Beach Recovering? — Real Estate Market Reports Sun, 19 Oct 2008 18:16:51 +0000 http://www.up2daterealestate.com/2008/10/17/south-pasadena-real-estate-3rd-quarter-up2date-report/#comment-2375 [...] Willis presents South Pasadena Real Estate - 3rd Quarter up2date Report posted at [...] [...] Willis presents South Pasadena Real Estate – 3rd Quarter up2date Report posted at [...]

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