Comments on: Pasadena Home Sales Increase in May http://www.up2daterealestate.com/2009/06/14/pasadena-home-sales-increase-in-may/ Brought to you by Doug and Deena Willis Tue, 29 Jun 2010 22:34:52 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Hannah B. http://www.up2daterealestate.com/2009/06/14/pasadena-home-sales-increase-in-may/comment-page-1/#comment-8180 Hannah B. Mon, 22 Jun 2009 19:24:34 +0000 http://www.up2daterealestate.com/?p=2745#comment-8180 A $500K median is completely unsustainable in my view. People do not make enough money to support that and banks are not going to go back to the easy money days which is what you need to sustain it. We're finally looking at a strengthening million dollar housing bust. Down payments are at least 20% and many asking more than 30%. There are less lenders willing to dole out jumbo mortgages. And interest for jumbos are still a good chunk higher than conforming. High unemployment, even with upper income buyers, and the lack of a move-up buyer all points to more pain the higher end, which will drag down the median. There are just too many million dollar homes, especially in Pasadena, and not enough qualified buyers in that income range. A $500K median is completely unsustainable in my view. People do not make enough money to support that and banks are not going to go back to the easy money days which is what you need to sustain it.

We’re finally looking at a strengthening million dollar housing bust. Down payments are at least 20% and many asking more than 30%. There are less lenders willing to dole out jumbo mortgages. And interest for jumbos are still a good chunk higher than conforming. High unemployment, even with upper income buyers, and the lack of a move-up buyer all points to more pain the higher end, which will drag down the median.

There are just too many million dollar homes, especially in Pasadena, and not enough qualified buyers in that income range.

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