Comments on: South Pasadena Real Estate Home Sales – 1st Quarter

By: Hannah B.

Hannah B. — Wed, 29 Apr 2009 22:53:14 +0000

You’re definitely right, much of the significant drops in NY can be attributed to the financial meltdown. From the numbers I’ve seen, however, the most significant drops have been within the last few months, despite the fact that the Wall Street’s financial debacle was really ratcheting up last year. Maybe it’s just playing catch up.

In Pasadena, especially after the IndyMac collapse, I believe there is a strong correlation with the increasing unemployment figures and the decline of housing prices. I know in South Pasadena, the city has been trying to cope with rising unemployment, rising vacancy rates, poor downtown business conditions, and population decreases due to high cost of living. That seems to be echoed in the rise in foreclosure activity I’ve been tracking in jumbo mortgage territory.

It seems obvious that the financial meltdown is playing out everywhere and I think NY’s being hit primarily by the local impact the collapses have had on rising unemployment figures in addition to the tightened credit market. I think regardless of the proximity to Wall Street, we’re all feeling the pain.

By: Los Angeles lofts

Los Angeles lofts — Wed, 29 Apr 2009 16:27:57 +0000

In’s interesting to hear that South Pasadena has not been hit by the same crash the rest of the Los Angeles market has suffered from. I work with loft rentals in Los Angeles and we have seen a few changes in the last 18 months including price reductions as well as unexpected competition from condo developers turned rentals. The last few months have show promise, I only hope the trend of 2009 continues.

By: Doug

Doug — Wed, 29 Apr 2009 01:08:55 +0000

Did the prices in Manhattan begin dropping when the financial industry began its tailspin? The NY real estate market seems very closely tied to Wall Street.

By: Hannah B.

Hannah B. — Tue, 28 Apr 2009 18:27:47 +0000

Thanks for the data. I find condos/townhouses in South Pasadena to be “interesting”. Many of them are so old and very apartment-like, but are priced similarly to Pasadena condos/townhouses. I wouldn’t touch those… I’m not surprised buyers aren’t jumping on them. As for median prices, the slow sales volume has to take a toll on people, even those who don’t have to sell, so I wouldn’t be surprised to see continuing declines in prices.

Although this isn’t to say that South Pasadena is Manhattan, but the situation has similarities. Manhattan prices held up for longer than most, and then as soon as prices started to drop, they really dropped significantly.

By: Doug

Doug — Mon, 27 Apr 2009 21:08:10 +0000

Hannah B

Thank you for your comments and opinions, they are always welcome and appreciated.

I went back and ran some quick numbers on the previous years. Here is what I came up with according to the Pasadena MLS. The time period was from Jan 1 to March 31 and included all residential properties (single family, condo & townhome)

2004, 40 properties sold, median price of $674,000
2005, 31 properties sold, median price of $680,000
2006, 47 properties sold, median price of $765,500
2007, 36 propreties sold, medina price of $752,200

The volumes have dropped significantly and I also think the price levels have remained constant since there have been less townhomes and condo’s selling which should reduce the overall median prices. However those are just my assumptions based upon what I have been seeing for the last several months.

By: Hannah B.

Hannah B. — Mon, 27 Apr 2009 19:31:57 +0000

What was the quarterly sales volume like in the boom years and “normal years”? I ask because the current sales volume seems awfully low. Many realtors often talk about how South Pasadena is immune, most telling me it would never drop because of how desirable it is: schools, neighborhoods, etc. Many I’ve spoken too often speak in half truths, and I can assume that the desirability of South Pasadena is the accurate part. And assuming these low sales numbers are abnormally low, I would surmise that either buyers are put off by the price stickiness on the decline given economic conditions or many would-be buyers aren’t getting approved for mortgages. Correct me if I’m wrong but sales volumes drop before prices drop, therefore, I think we are looking at more of the beginning stages of the decline in prices in South Pasadena.

The schools may be great in South Pasadena, but if people can’t afford to buy, the school quality becomes quite meaningless. South Pasadena will always be more expensive than Pasadena, but the question is how much of a price premium will the area command over neighboring areas, median incomes, and buyer’s debt loads?

As a side note, I see what kind of an ethical realtor you are and despite the minor disagreements I may have with some of your opinions/conclusions, I have a respect for you that I don’t share with other realtors.