Latest housing reports seem to indicate strongly that home prices have finally hit bottom after 5 long years of a downward spiral. Nationwide, home values rose 0.2% year-over-year to a median $149,300 during the second quarter, the first annual increase since 2007, real estate listing site Zillow reported. Prices were up 2.1% from the first quarter. So, 2/10th of a percent aren’t much, but it’s far better than the falling, falling and falling prices we’ve become so used to.
June, 2012 marked the fourth consecutive month of home value increases, indicating that the bottom, which industry insiders had predicted would not come until next year, has been reached. Of course, overall home prices are still down almost 24% since April 2007, so the nation has a long way to go before the many underwater homeowners start to feel they may make. In fact, prices may never return to “bubble” levels.
What’s the Story in Pasadena?
Prices are up in California as well, though it was one of the hardest hit states during this current recession, prices having been run up to previously-unimaginable levels during the first few years of the new century. As we know, cities like Stockton, Fresno and Modesto are still suffering agonies due to the collapse of the housing market. Here in Southern California the City of San Bernardino, hit hard by falling home values and consequent drop in tax revenue, has filed for bankruptcy. Riverside, though, is on the mend thanks to legions of investors and first-time home buyers who snapped up wonderful bargain homes in the new developments devastated by price drops.
Pasadena as a hub of regional activity despite being next door to the megalopolis of Los Angeles is also recovering. Generally, real estate professionals divide the city into quarters, NE, SW, SE, NW, with each quarter behaving slightly differently, though all participate in the city’s cachet as a great place to live.
For the last three months Northeast Pasadena has seen 63 sales of single-family homes with the lowest at $192,689 for an 800 square foot, 2-bedroom house,built in 1923 and the highest is a 6540 square foot house on nearly an acre of land selling at $4.5 million. NE Pasadena is a bit of an oddball because generally it has the least expensive homes in Pasadena along with, across the arroyo in Linda Vista and San Rafael, some of the most expensive. This area had 15 sales under $300K, 14 under $400k, 7 under $500K, 3 under $600k, 1 in the $800k range, 2 in the $900K area and a whopping 14 in the $1-$2 million range and 2 in the $2 million category. Of these sales, 21 were short sales or foreclosures, one-third of all sales, a huge drop from previous years.
Southwest Pasadena, one of the toniest Pasadena enclaves of beautifully-maintained Craftsman homes, had 43 sales of single-family homes in the same period, starting, surprisingly with an $88,500 foreclosure fixer and extending to a 6000+ square foot home for $3.1 million. In this area, just 2 homes were sold in the $200k range, 1 under $500K, 2 under $600K, then 6 under $700k, 3 under $800k, 9 under $900k, 12 in the $1-$2 million range, 2 in the $2-$3 million bracket and the one over $3 million. Again, a full one-third of the homes sold were over $1 million. This area has the fewest distress sales–just one foreclosure. Recession is over here, apparently.
Northeast Pasadena, the most strictly residential of all the areas, had the most sales, 126. This time, though, most of the sales were concentrated in the middle amounts which for this area means $500k-$800k. Here we see 2 sales under $300k, 16 under $400k, 21 under $500k, but 35 in the $600-$700k range, 31 in the $700-$800K range and 12 in the $800k-$900K, 4 over $900k but below $1 million and 4 selling over a million up to $1.3 million. Of these sales, a mere 15 were either REOs [real-estate owned] or short sales. Distressed sales are clearly over in this area.
Southeast Pasadena, also traditionally a less expensive part of the city, had 50 sales of which 10 or 20% were distress sales. Again this is a much lower percentage than we have become used to as for the past few years these sales represented 40% to 50% of the sales in any given month. This area, too, has most sales in the under $300k range  or under $400K  or under $500k  with a few sales under $600k , 1 sale under $700k, 3 under $800k, 1 under $900k, but then, as this is Pasadena 7 sales under $1 million, 9 in the $1-2 million range, 6 in the $2-3 million bracket and 3 over $3 million. Thus, 36% of the sales in this “cheaper” areaare over $1 million.
Outlook For Pasadena?
In a word, the outlook is very good. Pasadena has come through the worst of the recession with property values lowered but not demolished as in so many areas of the state and the country. Pasadena has many properties available for first-time buyers who, typically, purchase at below $500k. Additionally, Pasadena offers many bargains in higher-end properties which, until recently, were not attracting the numbers of buyers that we have seen in the past 3 months.
The word is now definitely out–Now is the time to buy or sell a home in Pasadena.
Thinking about selling your home? I can help you sell your home for maximum proceeds to you or short sale your property and never pay the bank another penny. Send me an e-mail at firstname.lastname@example.org. I will contact you for a free consultation.
When we talk, I will explain how I will sell your home and answer any questions you may have. Or, if you prefer, you can call me at (626)641-0346.
Diane Butler specializes in helping Pasadena Homeowners. Pasadena, Pasadena Home Sales, Pasadena Short Sales, Pasadena Home Sale Agent, Pasadena Home Sale Broker, Pasadena Short Sale Realtor, Pasadena Realtors, Pasadena Realty, Pasadena Realtor. Altadena Short Sales, Altadena Short Sale Realtor. Azusa Short Sales, Azusa Short Sale Realtor.