Impact On Pasadena Homes

Just when the Pasadena real estate market was beginning to show some signs of life for 2008, the first week of October could be telling a very different story. Conversations with a couple of escrow officers today indicate that October home sales have yet to appear on the radar screen. Both indicated that business had been steadier in September with new escrows being opened, but it has suddenly stopped. Neither officer had received any new contracts since Thursday of last week. Granted, this is only empirical data based upon a couple of informal conversations.

I also spoke to a lender with a major company in the home mortgage business. It was confirmed to me that money was available to lend, but no applications had been received in the last several days. Apparently, all of the recent news reports indicating a tightening credit policy have been felt in the mortgage industry. If you can meet the increasing standards to secure a home loan, money is available.

If ask to bottom line the current situation in our real estate market, I believe it can be assessed with one word. UNCERTAINTY. Uncertainty is usually not a friend of someone looking to make a major investment. Very few of us have the nerve to take a contrarian point of view and buck the herd mentality. It was also brought to my attention that we just might be experiencing a normal October slowdown. To that I would have to reply, “Slowdown from what?” You have to experience an increase to have a slowdown.

This real estate market like all financial markets is proving hard to predict.