It wasn’t that long ago when houses were staying on the market for 21 days and receiving multiple offers. The stock market was reaching historical highs. Home prices were climbing faster than our national debt. You did not hear the words foreclosure and short sale. The skies were blue and the birds were singing.

About 40 years ago the Clampett’s loaded up the truck and moved to Beverly, Hills that is, swimming pools, movie stars. Jed knew that California afforded a unique opportunity he couldn’t find elsewhere. The same can be said of the opportunities available today in the Pasadena real estate market and surrounding cities. It is a Seller’s market characterized by multiple offers and homes being sold over their asking price. There is however only one problem, the sellers are not there.

As many home sellers still grapple with declining equity, bank owned homes and short sales are driving the market. In the October market report on sales of Pasadena homes, sale prices under $500,000 are having a negative impact on median prices, but also on surrounding home values as well. If you are a homeowner who still has equity in your property (congratulations by the way), the rising inventory of distressed properties may be forcing you to rethink your sale price. It’s very hard to compete when you have 20 – 30 properties in some stage of the foreclosure process, in a quarter mile radius of your home.

Buying a bank owned home or distressed property can offer the opportunity to buy the house under market value. Banks generally are concerned with only the selling price. No emotional attachment with the property. Strictly a business decision. In other words “mark it down and leave town”. Imagine having some instant equity on the day of closing.

Many investors and home buyers find themselves in a real estate market many thought we would never see again. Homes are becoming more affordable. If you need to invest your money, what are your options these days? People who have been forced to leave their homes need someplace to live. Paying rent is more easily done than paying property taxes on a declining asset along with the possibility of a mortgage reset and higher payments, down the road.

However, one needs to proceed cautiously. The feeding frenzy that develops may force you to pay higher than what you had anticipated, defeating your initial purpose. Know the market prices in the area and set parameters on what you are willing to offer. If you are in the market to purchase or just want to see what is available, we offer free foreclosure listings of property in California. Someone once said “you make money when you buy, not when you sell”.

Y’all come back now, hear!

Tags: ca pasadena real estate, distressed property in Pasadena, foreclosure listings free, Pasadena real estate