Home sales for the month of July are still about 3-4 weeks away from being released on a national level. Expect a reversal in the continuing bad news that has plagued the housing market for the last year. Why the change? Is it from the expected passage of the
Housing Bill making its way through Congress? Have the number of foreclosed homes finally reached their peak and now are beginning to level off? Have home buyer’s come to recognize that the bottom is soon approaching and pent up demand will drive the market higher? Or have consumers just been inundated to death by articles and advertising campaigns stating that “now is a great time to buy a house” and it is finally beginning to pay off?

The answer is ….probably not

It would be great news and also provide a much needed boost to the housing sector if we could pinpoint the expected July turnaround to the proactive position taken by consumers and to a lesser extent, government intervention. But the underlying reason of the better news can only be attributed to one thing, and that is…. time.

It was July 2007, when we noticed a substantial drop in home sales activity. Although projected home sales for the month of July 2008 will be predictably in line with what we have seen so far this year, when compared against last year it will appear that the housing market has began to steady itself and that the worst news is now behind us. The outlook for the remainder of 2008 also appears to be favorable based upon the recorded home sales in the back half of ‘07. While the next few months may begin to appear more positive, its not much to get excited about. But then again it will be portrayed as a sign that the market is on track and that in itself will allay consumer skepticism. The perception will be perceived as a return to normalcy and as we all know, perception is reality, when in fact you know it as a false positive.

Tags: pasadena ca real estate, Pasadena home sales, pasadena housing market, pasadena market reports, Pasadena market update

Income property in Pasadena offers many different possibilities depending upon your needs and desires. For the first time investor, there are many two unit duplex properties for sale or maybe even a house with a guest house located in the backyard. For the more experienced or better capitalized, Pasadena has many options consisting of older apartment homes or new mixed use retail properties. Pasadena offers a unique variety with the added benefit of not imposing rent control upon the owner. Today we will take a look at four different properties currently for sale.

13 Unit Apartment Complex in SE Pasadena

These units are described as a townhome styled apartment complex with super low turnover. Built in 1987, the listing description throws out the idea of making this into a condo conversion.
With 11 of the 13 units consisting of 2 beds and 2.5 baths in approximately 1120 square feet. These units have thier own 2 car attached garages and two master suites. Priced at $4,300,000, average cost per unit would be $330,769. Taking a quick look at comparable properties in the area, one unit on Vista St., is showing “pending” at $399,999. It was built in 1988 has 2 beds / 3 baths and 1084 sq ft. This comparable unit appears totally fixed up and is described as “turnkey”.

51 Apartment Units, Close to Old Town

Just reduced $500,000 to $7,900,000, this property was built in 1924. Floor plans range from a 295 sq ft entry level unit to a 1247 sq ft consisting of one bed and one bath, den unit. Upgrades have been made to the common areas in the building. It’s hard to find buildings that offer this much style and character. Certainly none of the new construction offered today has the charm that is found in these older buildings. Also you don’t see any new construction being built with bricks.

Mixed Use Apartment / Condo/ Retail

The listing price on this property has been reduced $1,100,000, and is now listed at $19,900,000. Must be a sign of the times. Offering 53 total units made up two properties consisting 30 & 23 units. Property is made up of apartment/condo and retail locations on street level. Apartment/Condo units are 2 & 3 bedroom with 2 baths.

34 Unit Apartment Building

Described as 31 units in the pictured building along with a parking lot and 3 units this property is available for $4,200,000. Indicating a gross rent multiplier of 12.28 (meaning at the
current rents it would take you 12 years and 3 months to pay for the building at the listing price. This is a quick analysis to get an idea of value). Other tax incentives may be available through the Mills Act.

Analyzing investment property from beginning to end will almost always require a CPA. You need someone who understands your tax situation, and can provide consultation along the way. It is much better to know your alternatives before you make any mistakes that could be costly.

Today’s headline in the Pasadena Star News proclaims that property values are on the rise.

My question is “Would that lead you to believe that home values have suddenly reversed their downward trend and the Pasadena real estate market has abruptly picked up steam”? If you read the newspaper by scanning the headlines then you may have a misunderstanding about what is actually happening in the City of Pasadena. The article goes on to say that Pasadena and San Gabriel saw increases of 10.2% in their property values. The article further quotes Rick Auerbach, LA County Tax Assessor as saying “We saw some decreases in value in single-family homes and condo’s. But we saw a lot of increase in multi-family buildings and commercial buildings, and that more than offset any decrease.”

We can unequivocally say that the increase in tax values can be reduced down to two words……..increased density.

Pasadena’s Real Estate - Value

In a city where the median home price has now shown 6 straight months of decline, I can assure you that values are not on the rise. But what you also have to understand is the manner in which the story is reported. The aggregate of Pasadena values are on the rise, and you don’t have to search very far to understand why. If you look at the new construction of Pasadena Condo’s and Townhomes a building boom certainly is in order. Apparently all of these new construction projects are now beginning to hit the tax rolls, resulting in a bigger tax base. The cities reporting tax increases are the cities that are experiencing increased building.

Many of these projects were green lighted before we heard the terms sub-prime mortgage crisis. However, it’s one thing to build them, it’s another thing to sell them. The developers of these projects are resorting to price concessions and some units are for lease, as the empirical data seems to suggest these developments are falling short of their sales goals.

Pasadena’s South Lake Shopping District

With all of the new housing units being built, a consolidation seems to be taking place in the retail area. Have you noticed all of the vacancies on South Lake? Once considered a premier shopping location the area is undergoing a transformation. Closed or soon to close are Wild Oats, Good Guys, Tower Records, Barry & Co. Jewelers, Lee-Mac Camera, Feast For The Home, Talbot Kids, Essence of Living, and Leather Factory. Quite a list. Are we destined to become a city of coffee shops and fast food?

Depending on your outlook, our city leader’s adoption of the current general plan will catapult Pasadena to the top of the list of desirable cities in which to live or create traffic tie ups that will only get worse once we have exited the freeway. My old boss used to say. “If you’re not growing, you’re dying”.

Let’s hope our short term desire remains in our long term best interest.

Tags: Pasadena's property values, Pasadena's tax base, Pasadena's tax revenue, Property value in Pasadena

When you decide to list your home for sale, I can almost guarantee you that every real estate agent you speak with will advise you that your home will be featured in the multiple listing service or MLS.

For lack of a better term, the MLS is the default database used by agents to see what homes are available for sale and to also determine how to price your home. The MLS contains tremendous amounts of information that can be used in a market evaluation for your property. A critical first step in the marketing of your property is insuring the listing information to be complete and correct and also that the listing contains several pictures. If someone is searching Pasadena CA homes for sale, you want your home presented in the best possible manner, otherwise it may be ignored.

The marketing of real estate is evolving from newspapers and other print vehicles to online content which gives your property the unique advantage of being on sale 24/7 as opposed to the Sunday paper that is in the trash by noon. Since many other websites pull content from the MLS, it’s imperative that when your property is entered and published to the world electronically, it be accurate, informative and complete.

Beware the ‘In House” Move

One of the selling points used by an agent to obtain your business is to tell you they will parade their office agents through your house prior to making it available to the public. As if this is some kind of benefit to you. Understand the quantity approach compared to the quality approach. It doesn’t matter how many people visit your home if they do not have a client looking for a house like yours. Your only interest should be in that one interested party, not in having the “Bus Stop” in front of your home. I have always heard that if you cannot “Dazzle them with Brilliance; Baffle them with Bulls–t”. Don’t let yourself be BAFFLED!

Furthermore, beware of your agent attempting to sell the property within their own brokerage company. Quite often, a listing agent through a managing broker will require the property to remain “in house” before allowing other agents the opportunity to see it or know that it is for sale. Brokerage companies love to double end commissions. This eliminates many of the potential buyers for your home, possibly forcing you to accept less money for your house. This tactic only benefits one party, the listing broker.

I’ve never really quite understood the fact that we as real estate agents have a fiduciary duty to our clients to put their interest above all others, when so many agents and their sponsoring brokers would sell a home in this fashion before introducing it to the masses. Surely, there is no greed in a real estate transaction, is there?

Tags: homes for sale, interviewing real estate agents, Selling Your Home

The Pasadena California real estate market has not flat lined, nor is it all gloom and doom. In fact there are many instances of homes selling and selling quickly. Why do some homes sell while others sit? If you have been reading the articles here at up2date, you probably are keenly aware of the importance of pricing in selling your home. In fact I have written about it, along with providing documented proof about it. My article about pricing your home showed the decline in value you can expect if you don’t properly price your Pasadena property correctly from the outset.

Success Story or Continuing Saga?

The biggest obstacle to getting your home sold is living in the past and trying to rationalize the value of your property and “what once was”. If you are selling your home you have to move away from the height of the market in August 2005. This cannot continue to be your reference point.

The sellers of this house realized that. This property is located in NE Pasadena and was listed for $700,000. It was in escrow in less than 30 days. The reason is that the sellers had an opportunity to relocate and were very reasonable with their expectations. They had a solid buyer and did not want to lose an opportunity. There is a saying in real estate that “Sometimes your first offer is your best offer” and that may or may not be true, but any offer is certainly worth a counter offer.

In Escrow in Less Than A Week

The sellers of this house understood the importance of pricing their home properly. How many houses in this market have an accepted offer after being on the market for only six days? Very few. How does a home sell so quickly, very simply it offers excellent value for the dollar. Value is best defined as “the price paid compared to the features or amenities that are offered”.

Does your home reflect a competitive price for the value that is offered? Before you answer that ask yourself “How many days has it been on the market?” The answer lies within. There is a house for sale in my neighborhood. In fact it has been for sale for over a year and with three different brokerage companies. Without seeing the house you know there is one overriding issue…..it offers no value at the listed price.

These Seller’s accepted The Secret

The owners of this property had a desire to move out of the area. They understood the key to selling their South Pasadena condo lied within the secret. As a result, they had an accepted offer in less than two weeks. Unlike many other property owners, they understood the fallacies in overpricing and thinking “we can always come down”.

So you see there are many success stories despite a slowing market. If your home has been listed for over 90 days it’s time for a reality check. When I list a house I let my potential client know that the biggest disservice I can provide is to overprice your property. Inevitably, sellers always begin to count their money. I cannot give someone an inflated value just to obtain their business. We take our fiduciary duty very seriously. People do not expect a property to stay on the market for months. Give me the Readers Digest condensed version. I’m not much on continuing sagas.

Tags: , homes sold in pasadena, pasadena ca real estate, pasadena realtor

If you enjoy live music then the place to be this summer is the Levitt Pavilion. Located at the corner of Walnut and Raymond streets near Old Town, the Levitt offers something for just about everyone, appealing to a wide variety of tastes and cultures. The music in the park concerts are provided from Wednesdays through Sundays and offer a different theme for each night of the week. We have been avid participants at the events for the last three to four years. It is a great casual relaxed atmosphere and an ideal location to enjoy the wonderful entertainment. Pasadena’s evenings begin to cool off after a warm summer day and there is usually plenty of shade by the time the music starts. The grass provides a nice cushion of carpet along with a gentle upslope to the back of the park, so all of the seating area provides good views of the stage. Most people bring a chair or a blanket along with a picnic basket and cooler and enjoy a fantastic evening of fun and relaxation. Oh and by the way, this is the best value in town, because the cost is free. They do pass around a collection hat, so be generous with those donations!

Sunday’s are jazz nights. We were there last Sunday as Barbara Morrison entertained and put on a great show. It was nice to see the amphitheater so full of people enjoying themselves as Ms. Morrison interacted with the audience and encouraged them to come up and dance.

Don’t Forget the Kids

Looking for something to do with the kids? Wednesday nights at the Levitt are devoted to children. American music gets the nod on Thursday’s. Friday they take it international and feature “World Rhythms’ and Saturday’s are devoted to “Musica Latina”. We have been to all of them and been fascinated at the talented performers and also by this wonderful opportunity we have here in Pasadena to enjoy something this amazing in a family type atmosphere.

Tags: Levitt concerts, music at the Levitt, pasadena music in the park, things to do in pasadena

If you are in the market to buy a new home, there is a good chance that you have started your search online. In fact, according to the National Association of Realtors, about 75% of consumers begin their home search on the internet. Searching for your new home in the comfort of your living room or dare I say office cubicle, can be a great way to get an idea of what’s on the market as well as current prices.

There are so many alternatives available to consumers these days, but how do you know you are seeing everything that is available? Here at up2date, my previous post focused upon our new portal that allows consumers to search Pasadena California Real Estate and its easy navigation and superior search capabilities. As we looked for a new vendor, we previewed several websites with excellent graphics, map search and unique tools that provided consumers with many options. However, there was a major problem with these alternative websites.

As I looked at competing vendors, I noticed when I performed a search for homes in Pasadena, there was a major discrepancy in the number of listings that were displayed. Example, searching homes for sale in Pasadena at up2daterealestate, returns 324 single family homes. Looking at two competitors, they return 103 and 75 houses for sale.

This is something that is not widely known. Case in point, other Pasadena (agent) sites I have looked at are using a competing product that does not have a reciprocity agreement with the Pasadena MLS. Plus if an agent is not a member of the Pasadena Board of Realtors, there is also a chance that their website provider only picks up listings that are placed through their local association. The Pasadena MLS (i-Tech) which merged with the MRMLS (to the east and south) does share listing data. However if an agent uses a third party provider, the information is not shared.

If you have a favorite site you have been using, check to see how many homes are listed for sale in a given city. Then check your results again here at up2daterealestate.

Tags: homes for sale in pasadena california, pasadena ca homes for sale, Pasadena home search, pasadena mls

Our goal with this Pasadena Real Estate Blog is to provide you with the latest news, trends, home sales data and market information and how it affects the overall Pasadena real estate market. We offer “at a glance” market reports that allow you to see what the conditions are in your zip code with regards to median prices and current inventory. We also have monthly sales history as far back as January 2005 by zip code, enabling you to follow the sales prices around your property.

Search Homes Listed for Sale, Just Like a Real Estate Agent

However a real estate site is just not complete without a unique tool that offers a quick learning process and is easy to use and understand.
Our new software offers a quick map search for homes listed for sale in Pasadena & neighboring cities. You can enter your price range, highlight the area in which you desire to live, and your options will be displayed on the map. Roll your mouse over the listing and obtain all the necessary information (sq ft., lot size, bed, bath, and price) and see unlimited pictures! Plus you can save your search and be notified by email when a price changes or when a new listing hits the market.

Pasadena Homes for Sale

To Begin:

1. Click the “Search for Homes” icon in the upper left hand corner
2. Identify your property type: single family, residential income, condo, etc
3. Enter your price range

After you have set the parameters to conduct your home search, then you can begin to navigate the map.

Move across the map by either clicking the “zoom” icon just to the right of the directional tool or by pointing your mouse to the “hand” and then adjusting the map to the area you want to search. If you need further adjustment, simply point your cursor to the directional tool at the top of the “zoom in” or “zoom out” tool. Clicking on the “+” will focus your search in a much more definable area and you can begin to read the streets and the neighborhoods will become familiar.

Need to go back or change? Just click on the “-” at the bottom of the zoom tool to see a wider area or focus your search in another part of town. Each of the bars represents a smaller or larger degree of zoom capability. Properties that fall into your defined search parameters will always be displayed.

The Search Results

Since the price range and the area have now been outlined, you can see all the homes in the neighborhood that meet your criteria.

The search I developed was for NE Pasadena. The boundaries were Washington Blvd., to the north and the 210 frwy to the south. Allen St. was the western border and Altadena Dr. was the eastern border. As of today, six homes are currently “for sale” and are listed between $600,000 to $700,000. This graphic has been cut and pasted, but when you visit the site, scroll your mouse over each house and get instant information and a picture (provided the agent has uploaded a picture). Click on the house and a new page will load resulting in much more information, a description and many more pictures.

Use the “hand” tool to go outside the immediate area and scan the map, to see what other homes meet your criteria. If it is within the price range, they will immediately load, providing you with more information.

Get Immediate up2date Information of New Listings

Be the first to know by choosing to “save this search”. You will be taken to a new page to enter some basic information. Log in and you will also be notified by email of new listings in your desired area when they premier on the market and also of price adjustments. I think that would be something important if you were looking for a home, to know that the price had just dropped. If you like what you see or need more information, drop us an email or give us a call. We are here to help and keep you up2date on Pasadena real estate.

Tags: Ca, homes for sale in Pasadena, pasadena california homes for sale, Pasadena home search, search Pasadena homes for sale

When you hear the word “sensitive” the Pasadena real estate market is probably not the first thing that springs to mind. That being said, we are probably in the midst of the most sensitive housing market in years. Volatility will continue to reign, until time has a chance to cure the current ills.

If you are looking to buy a property, there is no more important factor than your interest rate.
It can make or break your deal. A slight change can end up costing you hundreds if not thousands of dollars over the life of your loan. The most closely watched barometer of the housing market, followed intently by home buyers and all but ignored by home sellers.

Why?

Because homes are priced based on comparative sales in the neighborhood with very little thought to economic conditions, with one exception as we will discuss in a following paragraph. On the other hand homes are purchased based upon affordability and qualification. Two factors that have maligned the mortgage industry of late, since borrowers are now being asked to document the file and prove their income.

The following graphs reflect the current status of the Pasadena California real estate market for single family homes as of last Friday, June 20.

Interest Rate Increase, Home Sales Decrease

Even though loan qualification is a much more stringent process these days, interest rates remain historically low. However when interest rates begin to rise what impact does this produce on home sales?

As you can see from the graph provided by Bankrate, over the last two and a half months interest have been steadily on the increase. Home buyers begin to recognize this and see the monthly mortgage payment consume more of the monthly budget. Instead of rushing out to lock in a loan, they choose to take a “wait and see” approach, in hopes of this just being a slight adjustment and thinking rates will soon fall to previous levels.

The Trickle Up Effect

When interest rates begin to move up, we see other leading indicators in the housing market begin to move in unison. Typically, inventory or unsold homes will increase as new homes become listed “for sale” and houses that have been “for sale” continue to increase their “days on market” or selling time due to the reduced activity of home buyers.

Now is when home sellers begin to pay attention to the economic indicators which is typified by how many days the house has been on the market for sale. The net result is the longer number of days it takes to sell a house produces a decline in property values.

One way to avoid being at the mercy of the housing market is to accept the fact that pricing your Pasadena home properly is critical to getting out of this market as quickly as possible. The longer you’re in it, the less likely your chances of winning.

Tags: interest rates, Pasadena home sales, pasadena housing market

UPDATE: Just this past week the California Association of Realtors announced that the effective lobbying effort by thousands of Realtors has forced the author of Assembly Bill 2678 to remove the requirement that would have homes and commercial property undergo an energy audit before escrow could close.

CAR further stated that they appreciate the goal of energy conservation, however this bill which could have required mandatory retrofits and upgrades had the potential to add increased costs to every transaction, further weakening the housing market.

Great job to CAR and to all of the people who expressed their dissatisfaction. It’s good to know that your Pasadena real estate will not encumbered by increased rules and regulations

The California Residential Purchase Agreement states that “the property is sold in its present physical condition, as of the date of acceptance, subject to Buyer’s investigation rights” or what others commonly refer to “AS IS”

As a real estate broker, I have a tremendous amount of respect for the California Association of Realtors or CAR. They maintain a wealth of information for their members and provide excellent consultation on the Legal Hotline when we have a question. They also keep us updated on the proceedings in Sacramento when a bill is before the State Assembly that could produce negative consequences on our industry should it be passed into law.

This is a copy of the email I received on Thursday, May 29:

“AB 2678 (Núñez) was passed by the Assembly on a 44-33 vote on Wednesday. The bill needed 41 votes to pass. AB 2678 would require, among other things, that ALL homes and commercial property in California have an energy audit at point-of-sale, and that mandatory energy efficiency investments be made. While C.A.R. appreciates the goal of energy conservation, C.A.R. strongly opposes the point-of-sale requirements in AB 2678 because they are not necessary to achieve the bill’s objectives and such mandates will weaken the housing market. If enacted, AB 2678 could add thousands of dollars to the cost of purchasing a home, including up to $400 just to have the home audited. AB 2678 will next be considered by the state Senate. Stay tuned for a Red Alert on the bill”.

Increased Closing Costs?

I interpret this legislation to mean that before you can sell your home/property, you may have to pay for an energy audit and based upon the results of these findings there may be increased costs involved in retrofitting or repairing your property to meet these new tougher guidelines.

My personal opinion is that this is bad legislation and from the close vote, it appears that many others share my feelings. An energy audit in Southern California, where we have some of the most desirable climate just doesn’t compute. Are we going to tell a homeowner that they need to weather-strip their windows because on a 78 degree day, a breeze could blow through the crack? An energy inspection should be the responsibility of the buyer if elected, to be performed during their due diligence process. Furthermore, my belief is that increased requirements upon property owners tends to chisel away at the bundle of rights we are entitled to, and I have to believe our founding fathers would agree. Lastly, since energy costs are becoming more and more expensive, many homeowners have taken it upon themselves to make their homes more efficient and a $400 mandated energy audit is an unnecessary expense.

It’s time we call our local representatives and tell Sacramento to leave things “AS IS”.

Next week we will examine the requirements involved with Pasadena real estate including its city occupancy and sidewalk ordinances.

Tags: AB2678, real estate closing costs, Selling Your Home