As you know, median prices can be very misleading. I know of many instances in So Pas where sellers have had to lower the price of their home in order for it to sell or maybe it did not sell at all, whereas one and a half years ago it would have been no problem.

I think what we are seeing in most of the analysis I have done is a mix shift. More expensive homes are selling and less expensive homes are selling. However the quantifier is “median”, therefore this is what is talked about.

When there is a 35% decline in unit volume, its hard to understand how prices can go up. They go up becasue the people who can afford to buy are still buying the more expensive homes. Lastly, I don’t think you will see much of a drop in So Pas. The reason is due to very little foreclosure activity as you find in Pasadena.

If you ask me, none of those are fundamentals. The fundamental is the income levels of the people living in South Pasadena, and last I checked, they didn’t go up during 2000-2006 housing bubble, and they’re staying the same now. I would say South Pasadena is more ripe than ever to experience a downturn like its neighboring areas.