Pasadena Homes | Pasadena & South Pasadena Real Estate

Pasadena Homes, Key Housing Stats

December 10, 2008 By Doug Willis Leave a Comment

The month of December has historically been a slow month for the housing market. Holiday parties, shopping and decorating keep many people at home instead of previewing houses for sale or even listing their house during this time of year. For those of you who have decided to put conventional aside, you may find home sellers eager to make a deal as the showing activity on their home begins to decline.

If a new house is on your holiday wish list, don’t forget to factor into your equation the cost of money. With interest rates coming down in the last few weeks you may be able to qualify for a more expensive home or find out the one you are considering may have become cheaper. On a $500,000 loan amortized over 30 years, the difference in interest rate payments for the first five years is about $12,500 or $208 per month.

In the next few days, I will report on the November sales of Pasadena homes. While that report focuses more specifically on what has sold, the enclosed chart describes the current market with homes currently listed for sale. The data specifically examines the “single family” market, so condos and townhomes have been excluded. The chart is broken down by zip code and includes the overall numbers tied together to give you an idea of how Pasadena is performing as a city. The data looks at four key indicators of the market including

The Median List Price – the number which indicates one half of the homes are listed for less and the other half is listed for more.
The Average Price per Square Foot – takes the listing price and divides it by the square feet on the property. A smaller house will typically sell at a higher cost per square foot than a larger house.
The Average Days on Market – the meter is running indicating the time a house has been on the market
Total Inventory – the number of homes listed for sale at this time.

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Filed Under: Current News Tagged With: pasadena homes, Pasadena homes for sale, pasadena housing market, Pasadena real estate

Pasadena Eco House, Preparing to take the LEED

November 20, 2008 By Doug Willis Leave a Comment

The preliminary construction process is beginning to take shape on the Pasadena Eco House. Work crews have begun dismantling the river rock retaining wall and the cinder block wall located at the back of the property. To provide you with an idea of the location of the walls, the picture to the right shows the rock wall in the foreground and the retaining wall next to the steps in the rear.

To obtain LEED Certification, certain requirements must be met on items carted away from the property, thus reducing any negative environmental impact. In simpler words, “keep things out of the landfill”.

River Rock, A Hot Commodity

The versatility of river rock cannot be overemphasized. Although it is not common anymore, it used to be the basis for building a house. In this instance the rock was used as a decorative retaining wall.
River rock foundations can still be found throughout the area on some of the older character homes. These days, one of its primary utilities is found in landscape design.

The local homeowners were eager to remove the rock and use it in their own projects. The rock, which was removed from the lot is now being used as a dry stream bed, which will also encompass a bridge in the design adding a unique and well remembered feature on an adjacent property. A terraced rock wall will also be constructed on another property. Lastly, one other homeowner took an entire bin of the stones to use in general landscaping projects and outlining the flower beds around the house.

Removal of Debris

Some of the other items removed included pavers, and cinder or concrete blocks. Most of these items were hauled away for recycling.
The company, Looney Bins has a documentation process that certifies the compliance with the LEED program. According to the company’s website, they are able to recycle approximately 90% of concrete, asphalt, rocks and dirt.

Next Steps

The lot was surveyed and the boundaries were marked this week. The actual construction should begin soon with the first step being to grade the lot in accordance with the slope and drainage requirements. It will be interesting to see how the parcel begins to take its shape. We will be providing future updates on the progress of the Eco House along with information on the unique new building processes and energy saving components of the home.

Filed Under: Pasadena Eco House Tagged With: construction of the pasadena eco house, pasadena homes

Pasadena Real Estate – up2date October Market Recap

November 16, 2008 By Doug Willis 1 Comment

“It was the best of times, it was the worst of times”…Charles Dickens

The same can be said of the Pasadena real estate market. The market overall continues to pick up steam. We continue to see unit volume increases, indicating that buyers are returning to the market which is good news. On the flip side those buyers are opting for many of the foreclosures and bank owned properties in Pasadena.

Unfortunately we can not confuse an increase in unit sales as being beneficial. Currently an inverse relationship exists with the number of houses that are being sold and the median price. Right now as more homes are sold, the median price continues to decline as short sales and foreclosures are eliciting multiple offers.

Market Action

In a slower market homes that are priced in the mid price ranges ($700.0 – $999.0) are usually prone to slower selling times. The reason is many buyers and investors look for opportunities to buy below market value in the the lower price ranges. In the higher end homes above $1MM, home buyers are not as susceptible to the increased demands of loan qualification, therefore homes are more likely to turnover.

The big question to which there is much speculation is “Is Pasadena real estate close to a bottom?”

If the projected sales numbers for November are any indication, the answer is “not yet”. Of the homes currently in escrow the median price appears to be lower than what was recorded for the month of October.

Pasadena Homes Market Report

The enclosed slides break out the numbers for the overall residential market. Included are single family along with condominiums and town homes. The report is best viewed by using the full size icon in the lower right hand corner.

Pasadena Real Estate – up2date Market Recap for October

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Filed Under: Up2date Sales Tagged With: ca pasadena, pasadena ca homes for sale, pasadena ca real estate, pasadena homes, Pasadena real estate

Pasadena & South Pasadena Real Estate Market Volatility

October 29, 2008 By Doug Willis 1 Comment

When the real estate markets begin to head south, why do some markets decline faster than others? Are their contributing factors that precipitate demand elasticity in some areas, while other neighborhoods appear to be more inelastic? Would this information be important to you if you were in the market to buy a new home, or is it not one of the factors most people consider when making a purchase?

In real estate the old adage was to buy the least expensive home on the best street. Most home buyers have a particular budget in mind when they shop for a home and what they can qualify for in terms of a loan and house payment. At least these days they do, the banks are seeing to that.

Neighborhood Value Considerations

Why does South Pasadena real estate seem to hold its value better than Pasadena?

Number of households -with So Pas having approximately 1/5 the number of housing units there is less diversity and much more homogeneity. Pasadena had better opportunities for entry level home buyers due to its history of lower median prices, while South Pasadena has been more of a move up market.
Distressed Properties – more housing units in Pasadena and lower entry prices have resulted in more properties in the foreclosure process, depressing home prices in the area.
More Equity, Less Leverage -when home buyers move up, they typically put more of their own money into the transaction meaning less volatility in market ups and downs.
Public Schools – schools in So Pas enjoy a very good reputation. Does a correlation exist between high home prices and good public schools? A recent comment by one of our readers made an excellent point about public schools. It would be interesting to see the effect on Pasadena home prices if the public schools had the same reputation as South Pasadena.
Other factors – neighborhood amenities, (retail, worship, topography, traffic, local services) and crime statistics can also have a role in the overall purchase decision, however these things may be more subjective to a large degree with the exception of crime in an area. If a home buyer is concerned about neighborhood crime, it is always a good idea to talk with the local police department.

When markets are bullish, we see prices rise across the board with no real concern of quality or value. The tech bubble comes to mind, followed by the real estate bubble. However when prices begin to fall, neighborhoods or cities that successfully address the above criteria will be less susceptible to market gyrations.

Filed Under: Current News Tagged With: ca pasadena, ca south pasadena, neighborhood values affecting real estate prices, pasadena ca real estate, pasadena homes, south pasadena homes, South Pasadena real estate

Pasadena Home Sales up2date Review

October 10, 2008 By Doug Willis 1 Comment

I have prepared my elevator speech for the Pasadena housing market….”consistent”. There you have it, nothing fancy, and nothing dramatic, just a quick conveyance of an idea that succinctly sums up Pasadena home sales for the month of September. Consistent was derived by looking at the median price decline for the month, which just happens to be the same decline as we had in August.

Again, rather than insert a matrix of numbers and try to explain each segment of our real estate market you will recognize the graphic at the end of the paragraphs. All of the market data is now put into a PowerPoint presentation and delivered via a slideshow. To me, the synopsis is much easier to read and therefore easier to understand.

Allow me to elaborate on a couple of the highlights in September. Inventory (meaning homes and condos available for sale) is beginning to decline. The main emphasis for this has to do with seasonal occurrences rather than increasing home sales. We are not however seeing the monthly volume swings that we used to experience when the market was much more active. In last month’s report I had suggested that we would see a big increase in the number of homes (units) that were sold. We did, by almost a 3:2 ratio. That could easily continue for the next several months. The reason is that in the 4th quarter of 2007, home sales fell off the radar screen, so today’s increase is against last years poor performance. Units will increase, however the same will not be applicable to prices. October and November’s median price last year was $655,000 and $654,000 respectively. That elevator has a way’s to go before we see those kinds of prices again.

However the long journey begins with a short step!

Pasadena Homes Sept08 Sales Report

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