Comments on: Pasadena Housing Statistics http://up2daterealestate.com/2009/10/13/pasadena-housing-statistics/ Your Home Is Our Business Fri, 03 Feb 2012 10:35:45 +0000 hourly 1 By: Hannah B. http://up2daterealestate.com/2009/10/13/pasadena-housing-statistics/comment-page-1/#comment-11904 Hannah B. Fri, 23 Oct 2009 20:21:10 +0000 http://www.up2daterealestate.com/?p=3820#comment-11904 Well, you are right as far as the real estate strength vs. last year. If it continues past government subsidies and artificially low interest, then it will truly defy all logic... with the rest of the economy in such a mess. From the work I've been doing, newer homeowners (those who purchased within the bubble period) are really not contributing much to the retail/restaurant sector. To be fair, that same argument is true about many renters. The common bond I've found between the two groups is high debt loads. Since the data is still too new, I can only guess at this, but I would assume that new homeowners (unless they have very low or more traditional DTI) follow the same pattern as in the previous groupings. Without ever increasing home valuations, I don't see new homeowners being a major contributor to local economic growth. Though I'm not really sure about home sellers that are making large profits off their homes. I'd bet they are saving their windfalls with a very small percentage spending. Well, you are right as far as the real estate strength vs. last year. If it continues past government subsidies and artificially low interest, then it will truly defy all logic… with the rest of the economy in such a mess. From the work I’ve been doing, newer homeowners (those who purchased within the bubble period) are really not contributing much to the retail/restaurant sector. To be fair, that same argument is true about many renters. The common bond I’ve found between the two groups is high debt loads. Since the data is still too new, I can only guess at this, but I would assume that new homeowners (unless they have very low or more traditional DTI) follow the same pattern as in the previous groupings. Without ever increasing home valuations, I don’t see new homeowners being a major contributor to local economic growth. Though I’m not really sure about home sellers that are making large profits off their homes. I’d bet they are saving their windfalls with a very small percentage spending.

]]> By: Doug Willis http://up2daterealestate.com/2009/10/13/pasadena-housing-statistics/comment-page-1/#comment-11888 Doug Willis Thu, 22 Oct 2009 23:36:50 +0000 http://www.up2daterealestate.com/?p=3820#comment-11888 The point I was making is that despite all of the economic bad news real estate is doing much better than it was 1 to 1.5 years ago. On the other hand the retail sector seems to be doing much more poorly given the same time frames. It does seem odd that ther can be two sectors of the economy with such different paths. I think low interest rates (artificially low) are having a much more positive impact on real estate while unemploymnet and concerns about the economy are dragging down the retail sector. I guess it's possible that homebuyers are eating in and wearing last years fashions. The point I was making is that despite all of the economic bad news real estate is doing much better than it was 1 to 1.5 years ago. On the other hand the retail sector seems to be doing much more poorly given the same time frames. It does seem odd that ther can be two sectors of the economy with such different paths. I think low interest rates (artificially low) are having a much more positive impact on real estate while unemploymnet and concerns about the economy are dragging down the retail sector.

I guess it’s possible that homebuyers are eating in and wearing last years fashions.

]]> By: Hannah B. http://up2daterealestate.com/2009/10/13/pasadena-housing-statistics/comment-page-1/#comment-11860 Hannah B. Wed, 21 Oct 2009 18:53:52 +0000 http://www.up2daterealestate.com/?p=3820#comment-11860 I'm surprised that the Pasadena housing market is doing this "well". The current housing trend defies all logic and how much of it can last without the heavy government intervention. What is surprising is that you're surprised by restaurant closings. The restaurant and retail sector has been getting killed. I've been consulting for a couple of local establishments and advising them on running promotions they wouldn't normally in order to get volume. Restaurant and retail relies heavily on disposable income. High house prices don't help businesses except for the few realtors and brokers closing the deals. Many banks are still giving out mortgages with DTI too high to be sustainable in my eyes, and these buyers are just too leveraged to do any real good for local businesses. The only way for these homeowners to be of value to local businesses is for us to return to the crazy money days so they can resume ATMing their homes. I’m surprised that the Pasadena housing market is doing this “well”. The current housing trend defies all logic and how much of it can last without the heavy government intervention. What is surprising is that you’re surprised by restaurant closings. The restaurant and retail sector has been getting killed. I’ve been consulting for a couple of local establishments and advising them on running promotions they wouldn’t normally in order to get volume. Restaurant and retail relies heavily on disposable income. High house prices don’t help businesses except for the few realtors and brokers closing the deals. Many banks are still giving out mortgages with DTI too high to be sustainable in my eyes, and these buyers are just too leveraged to do any real good for local businesses. The only way for these homeowners to be of value to local businesses is for us to return to the crazy money days so they can resume ATMing their homes.

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