The Pasadena housing market continues to limp along on one leg. While this strategy seems to work well for Tiger Woods, it does not bode well if you are a property owner with a house to sell. Sales results for the month of June continue to confirm what we have seen year to date with (1) fewer home sales and (2) decline in the median sales price.

The June median price was $700,000, compared to $790,000 last year, a decline of 11.3%. Compared to Pasadena’s median price last month of $760,000, prices declined 7.9%. June is normally a strong month for housing as evidenced by last years median price of $790,000 for May and June. The fact that we experienced further declines this past month indicate that the housing market is continuing to soften.

The mix of units sold is changing. In June ‘07, there were 4 homes that sold below $500,000 ranging in price from $449.0 to $495. This year 10 homes sold below $500,000 with prices from $339.9 to $469.9. The low end of the market has re-emerged with sales of homes in the range of $500.0 to $999.0 slowing. Currently 504 units/properties are either active, pending or in back-up position resulting in approximately a 10 month inventory supply.

Pasadena Condo’s & Townhomes

Condo’s and Townhomes continue to lag and drag. They lag the units sold in comparison to the single family market and they continue to drag down the overall performance of the housing market with their larger declines in value. .Sales results for June indicate a median price of $477,500 which was down almost 17% from last June’s median price of $575,000 and we sold almost 50% fewer units. Compared to last month’s median price of $488,000, the median price declined 2.1%. We also have approximately a 10 month supply here as well with 319 units on the market today.

Median Price vs Average Price

I am often asked why we do not include an “average” price on our market updates. To me, an average price is not a good indicator of what is happening in the market. Here is an example. Currently the most expensive listing in Pasadena is a house for $52 million. If this house were to sell, can you imagine how the numbers would be inflated and thrown all out of proportion due to this one sale based upon an average? Median prices direct us towards the middle. Average prices tend to sku the results, either positively or negatively.

Ckick on the link to see all of the homes sold in Pasadena, South Pasadena, and Altadena for the month of June.

The data used for this report was compiled from the i-Tech MLS on 7/10. The data will only include properties listed in the i-Tech MLS.

Tags: pasadena ca homes for sale, pasadena california market update, pasadena california real estate, pasadena june market report, Pasadena real estate

Imagine this scenario: You have listed your home for sale and understand the market has been slow. There are many other Pasadena homes for sale in your area. However a buyer loved your home and made a quick offer that was accepted. Escrow has been opened. The Pasadena City Occupancy inspection has been ordered, but you have been told your property has sidewalk damage. Sidewalk damage?

The City of Pasadena has a couple of ordinances that cause some consternation among its property owners. Most homeowner’s are not aware that it exists until it comes time to sell their property. As you can see from the picture, tree roots are often responsible for uprooting and destroying the city sidewalks, creating a safety hazard. Throughout the city, this is a common concern. However, the city has decided it will no longer pay to repair the buckled sidewalks. Someone has to pay, you the homeowner, the last line of defense now has the privilege of repairing the city’s infrastructure. Congratulations!

Double Down

There are a couple of issues involved here (1) the policy of requiring property owners to pay and (2) the manner in which it is enforced.

First of all, requiring property owners to pay is an excellent example of shifting the responsibility from the public sector to private individual. The City of Pasadena maintains the strip of land between the sidewalk and the street as evidenced by their policy of planting and removing diseased trees. This indicates at least to me an implied covenant of maintaining the structure, free from defects.

My situation involved these two pictures with the yellow outlines. When I applied for the occupancy inspection I was informed the property had sidewalk damage in the amount of $380. I discussed this with the homeowner and we agreed that we would ask for a review.
I spoke with the gentleman in charge of the department and he agreed to meet me in a couple of weeks. I called a week later to inform him we had the occupancy approval, we were just waiting to resolve the sidewalk issue. He placed a call to his assistant to let me know that he would be calling me to arrange a meeting.

I have an issue regarding the manner in which this department conducts its business. I was called only after the inspector had been to the property. Then he informed me that the original inspection was old and invalid and that the new damage assessment was not $380, but was now $765. So you want to question the inspection, do you? “No Soup For You”

There you have it. No chance to question the elitist inspector. No documentation offered as to the doubling of the repair cost. Then to add insult to injury, he implied my seller should be thankful they are selling their home in this market.

A review of this policy should be implemented. Property owners need to know and understand what the allowable variance is before they have to pay to correct what should be the responsibility of city government.

Tags: California, pasadena inspections, Pasadena real estate, Selling property in Pasadena

May was an exciting month with the Phoenix Mars Lander arriving on the Red Planet. Its goal is to look for signs of life. Was there water on Mars? If the Mars Lander somehow became misguided and landed in the San Gabriel Valley, would it find signs of life in the Pasadena Real Estate market?

There does appear to be some activity as the positive signs indicate increasing unit sales in single family homes. Monthly increases this year are much smaller than in years past, but they are slowly on the rise and the gap between unit sales last year is decreasing. There is still some pricing weakness in the market as sellers have to offer bigger discounts to sell their home.

We are seeing the market for homes under $500,000 redevelop, thanks to foreclosed and bank owned properties. This month, 12 homes sold under $500,000 compared to only 3 in May ‘07. On the other end of the market, $1 million dollar homes declined with 17 sales this month compared to 27 last year.

Pasadena Townhomes and Condominiums

I recently recapped the Pasadena Townhome and Condominium building boom. Looking at the sales results in this area you have to ask “What were they thinking”? New multi-use projects are nearing completion and are targeted at upper end homebuyer’s.
Median sale prices are near 2006 levels and current inventory is close to a 10 month supply. Current sellers and developers are becoming more aggressive in an attempt to solicit offers from the declining pool of buyers.

Market to Level in July

Based upon the current trends, July should be the point we begin to see equilibrium as the decline became very pronounced last year. The market probably will not pick up; it’s just that the news reports will not seem so ominous.

Tags: pasadena california real estate, pasadena housing market report, Pasadena real estate

The content of this article may be the key to your future prosperity. For it holds the key to what so many have searched before. The text is not based upon hearsay, not based on opinion, but rather predicated on actual data. In these days when everyone has an opinion on the anemic housing market its good to know that someone has performed the research, culled the data and drawn careful conclusions. The key to selling your house in this current market will soon be revealed.

I should also point out that our research department which is staffed by six figure MBA’s had the afternoon off. Actually they have every afternoon off, since we do not have a research department. Regardless, the thesis for a successful property transaction was discovered in about an hour. Not by mere accident like rubber and the telephone, but by attempting to prove a theory. A guess, that there was a correlation somewhere between why some experience success while others deal with frustration and failure.

Selling houses is not rocket science, no matter what some agents would try and get you to believe. There is no magic bullet, no formula that has been passed down through the ages. No one particular agent or company has “the power”, for if they did it would have been published long ago, allowing the keeper of the flame to cash out and make millions of dollars on speaking engagements and book publishing. Real estate agents know this, however there is an implied oath, that it never be divulged or publicly exposed for fear of succumbing to the status quo. Its Superman’s kryptonite. The myth must continue to be propagated.

It Should Have Been Obvious

Sometimes we attempt to make things more complex than they should be. However the secret to a successful property transaction is so simple, it should have been announced a long time ago. In fact, we obfuscate the real issue with terms such as “staging”, “curb appeal” and rosy laced language we forget we are selling real property, instead of trench coats for J. Peterman.

The Secret Announced

Your success or failure in your property sale will be determined from day one. Once your house hits the market and has been announced that it is “For Sale”, your strategy has been plotted and your motive announced.

For the key to maximizing your value, the difference between success and failure all comes down to one thing……..the listing price

The data analyzed was residential sales for the month of May in Pasadena, California.

The numbers indicate that if your house is priced correctly from the beginning, two things are likely to happen:

1. The house will sell for more money
2. The house will sell in less time

The chart shows when properties are listed too high, they tend to chase the market and take price reductions, selling for less and less of their asking prices. The result is longer selling times, therefore reducing the value.

In a declining market, time is money, and the longer your home sits unsold, well I think you get the idea.

Tags: home selling tips, pasadena california real estate, Pasadena real estate, Selling Your Home

The highly awaited and much anticipated ground breaking for the Pasadena Eco House is now confirmed. The date has been scheduled for June 11, 2008. This house which is expected to be the only Platinum Certified LEED home in the area will utilize several new and innovative technologies designed to save and conserve our natural resources along with reducing the amount of energy consumption.

The City of Pasadena and its green initiative will be on display as the ground breaking follows the Greentech 2008 technologies conference.

“If you had the ability to look into the future and visualize the positive changes in residential home construction, this is what you would see”, said Deena Willis, a Pasadena real estate broker and event coordinator for the ground breaking. “This is truly an amazing project”. Unlike traditional construction methods that utilize 2 x 4 wood studs for the framing structure, the Eco House will instead use foam panels made of recycled materials and welded mesh and then covered with a concrete skin for added strength, fire resistance and increased insulation.

Generally the building of a new home goes unnoticed and doesn’t warrant the media attention the Pasadena Eco House has received. The Eco House like many new homes will incorporate today’s desired amenities, but it will also be rich in design, form and function. Considering the rising cost of energy and the desire to maintain sustainable materials and products in the manufacturing process, this project represents a revolutionary new concept in the adaptation of future housing. The design takes full advantage of the lifestyle we enjoy here in California and there could be no better place to call home than Pasadena!

For a media package or more information, please email Deena Willis. She can also be reached at 626-432-4625.

Tags: pasadena california homes, Pasadena real estate

Looking at all of the new construction projects in town you would never guess that Pasadena real estate is experiencing a slow down. If you have made the decision to purchase a condominium or townhome then take your seat front and center. The catbird seat. You have many options these days. No matter what you are looking for in terms of amenities or pricing, chances are it is available, and less expensive than it was six months ago. Prices have come down from their listing highs. Based upon the recent rate of sale we may see further reductions.

Catalina Villas is a 15 unit complex located at 480 N. Catalina Avenue. 8 properties are currently for sale. A 2 bed and 3 bath unit featuring 1009 square feet is currently listed for $459,000, down from $544,500 last June. Association fees are $250/month. Units with 2 beds and 2 baths are listed for $399,500.

Fair Oaks Summit - a 24 unit complex with 10 units currently for sale. A 3 bed / 3 bath unit was listed last September for $589,000 and is offering 1709 square feet. It has been reduced to $450,000. Located between Washington and Woodbury on N Fair Oaks, this craftsman style unit has an association fee of $238/month. If you desire new construction, these units offer a great value.

Cinema Lofts feature a total of 37 units, however only 3 units have been reported sold with another 2 units pending. These lofts are 1 bed and 1 bath ranging in price from $385,000 to $395,000. Properties have been listed for 3 months, with association fees in the range of $159.00/month. These units appear to be very elegantly appointed with some great features and amenities.

Belleme Terrace - ranging in price from $595,000 for a 2 bedroom, 3 bath with 1163 sq ft to a unit of 2307 sq ft priced at $1,099,000. This 16 unit complex has 12 units available for sale. These units were listed for sale in November last year and have had price reductions in the range of 6%. A beautifully designed complex unlike any other in Pasadena.

More Coming

There are several other projects currently in the construction phase including Lake@Walnut, a mixed use project containing 106 residential units that are being constructed on top of retail space which sits on the ground floor. To the west we have Delacey Place. Another mixed use project with first floor retail and 30 residential units.

Tags: pasadena california real estate, pasadena condos & townhomes, Pasadena real estate

With a little over 8 months of inventory on hand and more projects on the way, we have to ask the question;

Are Pasadena Condo and Townhome Prices out of Sync with the Market?

Townhomes and condominiums offer many wonderful advantages to a single family house. That is of course you consider the amenities they offer an advantage. Visualization is a key factor when purchasing a home. How you perceive yourself in your new surroundings will determine what kind of lifestyle you want to live and will ultimately purchase.

For those looking to eliminate yard work and much of the maintenance involved in a single family home, condos / townhomes can be a great alternative. These units at least here in Pasadena, are usually much newer than a comparably priced home and less expensive. However, upon closer examination, is a condo/townhome really less expensive than its single family counterpart?

April Sales Results

If we go back and examine the Pasadena real estate sales for April we see that there were 31 sales of townhomes and condos. The average square footage was 1236 and the average cost per square foot was $426.89. The median price was $460,000.

For the same month there were 51 single family homes sold with an average of 1863 sq ft. and a cost per square foot of $441.34. The median price was $665,000.

In a simple comparison you can see that in terms of square footage, single family held a 627 sq ft. advantage or 50%, comparing the median price, single family was more expensive by $205,000 or 44%, but comparing cost per square foot single family was only $14.45 (3.3%) more expensive for a single family. Cost per square foot can sometimes be an invalid form of comparison, so it’s best when used with other forms of analysis.

Under All is the Land

The median lot size for Pasadena in April was 7970 sq ft. We have to make some assumptions here but if you can build a new house for $250/sq ft, the median cost of the structure only would be $465,750 or at $200/sq ft., the cost would be $372,600. I think it safe to say that a 7900 sq ft lot in Pasadena with streets and sewer lines could easily sell for $350,000 - $400,000. Factoring in the land cost it does appear that a single family home provides much more value than does a condominium or townhome. Typically the appreciation on condo/townhomes is slower than single family and on the flip side they will tend to lose value more rapidly than a single family in a slower market.

Other costs involved which add value to condo/townhomes and is harder to quantify are the common area amenities which can include a pool, clubhouse, weight room, etc. Developers may also pass on the costs of inclusionary housing to the new residents which maybe required in order to obtain city council approval for construction.

While condo’s and townhomes appear to offer a less expensive alternative to single family housing, a closer look may reveal that dollar for dollar, the real value is in single family units.

Tags: pasadena california condos and townhomes, pasadena condominiums, Pasadena real estate

The Pasadena real estate market may be getting a pulse. After sales declines of 50% for the last three months, sales continued to decline but unit sales were of by a mere 28%, compared to April ‘07. Compared to last month, unit sales increased from 38 to 51 units or 34%. Looking at some other key indicators such as days on market, it is still talking much longer to sell a house this year, which probably explains why homes are selling at a greater discount compared to their asking prices as evidenced by the percentage of sale price to list price.

According to Altos Research, there are 487 single family properties for sale in Pasadena, indicating a 9.5 months supply, very indicative of a buyers market.

Condo’s & Townhomes

Sales of condos and townhomes also decreased 14% compared to last year, but unit sales continued to decline by almost 50%. Compared to last month units increased from 25 to 31 and sales prices were down about 2% from $470,000 to $460,000. Last year we saw an increase in activity in new units which helped propel the median prices in this category. Now with the slower market, condos and townhomes are returning to median prices seen in 2006.

We are seeing some of the same characteristics as the single family market, mainly condos and townhomes are selling at a bigger discount to their listing prices. Altos Research reports that 289 condos & townhomes are available for sale. With 31 reported sales in April, a 9.3 months supply of inventory exists. If you would like the latest research information on the Pasadena real estate market, email me, indicating single family or condo.

A list of all the homes / townhomes that were sold in Pasadena, Altadena and South Pasadena for the month of April is available at up2daterealestate.

Note: We have modified our “days on market” with two numbers, (1) is days on market for the current listing period, (2) represents cummulative days on market indicating how long a property has been for sale. For instance, a property may have been for sale for 60 days and did not sell and was relisted with a new agent one week later. Numerically it would read 1/61.

Tags: pasadena housing market, Pasadena real estate, Pasadena Real Estate Agent

Attempting to define the Pasadena real estate market is akin to watching air run through a clear tube. You know its moving, you just can’t see it. I think that is what we are experiencing right now with Pasadena home sales. Conversations with other brokers and escrow agents indicate that there could be a small level of increased activity taking place. Call volume has picked up and it is usually a good indicator of the current market situation, in other words are potential home buyers inquiring about homes listed for sale?

However we look at the empirical data, one of the things we are attempting to identify are trends. Trends such as; are things beginning to improve, are the new increased loan limits now beginning to have an effect, are buyers beginning to return to the market?

Looking at the current housing market barometers, there is very little change with respect to (1) days on market (2) current inventory and (3) median price:

Days on Market

The days on market took a significant dip about 4-6 weeks ago, this could be the result of some properties that have been on the market for many days and have expired and are now no longer for sale. The fact that this has ticked up again indicates no real significance or change.

Inventory

Inventory is still high compared to last year but has been declining as of late. I don’t believe this is attributable to a sales increase, rather I believe it was due to many homes being expired or canceled. The recent rise in inventory seems to indicate this. Single family inventory has been centered around 500 units:

1. week ending 3/28, 497 units for sale
2. week ending 4/18, 511 units for sale
3. week ending 5/2, 492 units for sale

Median Price

Prices still appear to be falling. Once the market begins to pick up this line will begin to flatten as many of these indicators will move in unison. Days on market will begin to fall and inventory will begin to decrease. But until we see that begin to happen, we will take any little bit of good news the market will allow.

Look for the April recap of the Pasadena real estate market within the next couple of days. We will see if the April results show any improvement.
Graphs courtesy of Altos Research, Copyright 2007

Tags: pasadena california homes for sale, Pasadena homes for sale, Pasadena real estate

We’ve all heard the real estate success stories when people purchased an investment home at a low price and then were flabbergasted at the 5 or 6 digit appreciation they realized when they sold it a few years later.  Everyday in the news, we hear or read about our country’s current economic slowdown, triggering a possible recession and responsible for the subsequent down turn of the Pasadena real estate market.  Is this the real estate trifecta we’ve been waiting for?

Let’s take a closer look at the city of Pasadena.  There is a large inventory of homes available on the market today.  In Pasadena, experts estimate about 10 months worth.  The average selling cycle to sell a home often exceeds 100 days with selling prices  well below asking price sometimes up to or greater than 10%.  In addition, the number of home foreclosures & short sales is greater than in past years.  In all, it seems as though, today’s real estate market is prime to purchase a solid investment residential property in a desirable neighborhood at a reasonable price.

OK, let’s go on this hypothetical journey, you purchase an investment home.  Am I going to get a decent rental income?  Who am I going to rent it to?  Is there a demand for homes to rent?   All of these questions have different variables (i.e. size, location, available amenities in the home) that prohibit an absolute answer to them.  However, according to the MLS, the median monthly rental price in Pasadena for the past year (3/07-3/08), is $ 2200.  With the availability of numerous websites for potential renters, advertising a home to rent is easy, inexpensive and accessible to more people.  With the increase in foreclosures, there is and will be a rise in the number of people/families needing to rent.  Plus, these people will be renting long-term in order to save for a down payment towards a future home. 

So, did we hit the real estate trifecta?  No one knows for sure.  Take a closer look.  Do some research on the internet, meet with your local real estate agent and financial counselor to examine the numbers.  Who knows…in five years, you may be the one boasting of the great real estate investment.

Tags: , Pasadena Investment Properties, Pasadena real estate, Pasadena Real Estate Agent