Pasadena’s Chic New Residence opened it doors last weekend for a sneak preview to their VIP guests. The turnout was a great success with over 10 units already reserved.

Luxury home designs span from 945 to 1,767 sq. ft and six of the eight home designs are single-level—which is very rare in urban living.

Lake@Walnut condominium prices range from the upper $300s to the upper $600s and homes include 1-2 bedrooms and 1-2.5 baths. Almost all units come with a patio, deck or porch. The HOA dues are very low and range approximately $233-$289 per month based on home size.

Read More: Investing in Pasadena real estate
Nine Stupid Things Buyers do to Mess Up their Home Purchase!

On February 21st, bring a friend and come admire Pasadena’s new development – Lake@Walnut’s glorious architecture, lush landscaping and tour all seven model homes.

Private model tours are now available by appointment by calling Irina, Pasadena Real Estate Home Specialist, at (626) 627-7107 or email her at Irina@PasadenaViews.com.

Ann’s post outlies various resources available to Pasadena residents including a Career Services Division where you will find computers connected to CALJOBS which matches applicants to available jobs, various free library activities and workshops focusing on essential skills and more.

Give it a read… it might help you or someone you know!

As the new year begins, Pasadena is seeing a lot more foreclosure listings hitting the real estate market as banks are trying to push out the backlog of repossessed homes up for sale. I expect the inventory of foreclosed homes in Pasadena to swell over the next few months.

Currently, we’re begining to see some Pasadena condos, some even next to South Lake Avenue district, in the $200,000 range. Pasadena single family homes are now more affordable and the interest rates are the lowest they’ve been in the last fifty years even with a bit of a climb over the last week into the 5% range.

According to a recent foreclosure prevention report by the Federal Housing Finance Agency (FHFA), repossessions by Fannie Mae and Freddie Mac grew by nearly 25 percent from the second quarter to the third quarter of 2008, hitting 15,196 homes nationwide.

Looking at Pasadena real estate foreclosure statistics, we’ve seen a tremendous jump in volume.

2nd quarter of 2008, there were only 7 foreclosed homes for sale and sold in Pasadena;
3rd quarter of 2008, there were 21 foreclosed homes for sale and sold in Pasadena;
4th quarter of 2008 saw the highest increase in Pasadena foreclosures for a total of 54.

The next few months will be telling.

In the meantime, keep track of available foreclosure homes in Pasadena below:

If you would like more information about any of these Pasadena homes, please call me at 626-627-7107.

Every month, Pasadena real estate blog brings you a statistical report highlighting Pasadena housing trends.  For December’s 2008 Pasadena real estate statistics, visit Pasadena housing trends and real estate market report for December 2008.

Looking at historical data and trends is critical in understanding what the Pasadena future real estate market can bring.

So, without further ado, here’s the analysis of where Pasadena real estate has taken us:

First of all, the most significant change each year has been the volume of Pasadena homes and condos sold:

• 2003 has seen the highest number of Pasadena homes sold – 1,402 units.  Compare that to 657 Pasadena homes sold last year in 2008.  That’s a drop of over 50%.
• Pasadena condo and townhome sales have peaked in 2004 at 744 units sold.  Again, the volume of condo and townhome sales in 2008 has dropped by more than 50% from 2004.
• Each year, it’s taking longer and longer to market Pasadena homes.  Still, the average days on the market was a bit over 3 months for both Pasadena homes and condos/townhomes.  We are still very much in the seller’s market even though it doesn’t feel like it to those of us that has experienced the real estate market over the last several years.  The official definition of a buyer’s market is when properties stay on the market for six months or more.

Pasadena real estate is still selling close to asking price:

• 2008 closed at 96.7% of asking prices for homes sold and 95.2% of list to sold price of condos and tonwhomes sold in Pasadena California.

Price per square foot for Pasadena Real Estate:

• Pasadena real estate started seeing price per square foot decreases in 2007 where it dropped slightly to $489 per square foot for homes sold and then a more significant drop in 2008 of 12.5% to $428.
• Pasadena condos and townhomes sold price per square foot was pretty flat from 2004 through 2008 and dropped by 11% this year.

Average Pasadena home sale prices:

• Pasadena home sale prices are back to 2005 levels, ending 2008 at $851,702.
• Pasadena condos and townhomes are paralelling, Pasadena single family homes and are also back to 2005 levels at $504,093.

So what can we anticipate in 2009:

• More foreclosures and short sales – no surprise there.
• Great interest rates for Pasadena home buyers and refinancing.
• Banks tightening up lending requirements and making financing dollars more difficult to get.
• Buyers needing to come up with more down payment funds.
• Home sellers providing more incentives to buyers.
• A much longer marketing period to sell Pasadena homes.
• Internet marketing and social media playing a significant role in selling homes.

Read More:  Pasadena Real Estate Outlook for 2009
South Pasadena Real Estate Review – 2003 – 2008
San Marino Real Estate Review – 2003 -2008
Duarte Real Estate Review – 2003 – 2008

See which Pasadena homes and condos/townhomes are listed for sale:

Posted by Irina Netchaev, your Pasadena Realtor.

A year ago, the rate was 6.17 percent for a comparable loan.

As a result, mortgage applications last week jumped to the highest level in five years, with more than 80 percent of the applications for refinancings.

There also was an 11 percent increase in applications for home purchase loans.

Interested in searching for homes in Pasadena:

If you have questions about any of these Pasadena homes for sale, call Irina, Pasadena Real Estate Agent at 626-627-7107.

Is there a reason for optimism in Pasadena for 2009?

There’s an interesting overview of what caused the financial crisis by Barry Habib of Mortgage Success Source which provides an easy overview of the “whys”, “hows” and “whats” coming up in 2009.  Here’s his perspective:

The financial crisis we are in today was not caused by mortgages or housing, although they were both catalysts. The real reason was an accounting rule called “Mark to Market” (also known as FASB 157).

Few people have a strong grasp of this rule, and even those who do have a tough time explaining it on air due to time restrictions. So let’s take a few minutes to break it down, so you can have the inside track on this very important concept and understand why it represents some great opportunities.

Why does ‘Mark to Market’ exist?

Let’s go back to the stock market crash, which occurred between 2000 and 2002. With the S&P down 49% and the NASDAQ down 71%, many people lost much of their life savings and they were very angry.

Companies like Enron and Arthur Andersen were able to find ways to make their books looks more attractive, which was reflected in an artificially inflated stock price.

Both the public and Congress had a call for more transparency in business and hastened the passage of “Mark to Market” accounting.

This is the notion that all assets should be valued as if they were sold on a daily basis. Under the letter of the law, failure to do this conservatively can now result in jail time.

So what’s the problem?

Before we get into what this means for banks, let me make a quick analogy using a scenario that should make perfect sense to you.

Let’s imagine that you own a house in a Pasadena neighborhood where all of the houses are priced at around $300,000. Unfortunately, your neighbor, who owns his home free and clear, falls ill and needs emergency cash quickly. Because he is under duress, he must sell the home for $200,000 in order to get the cash he needs right away, even though the home is worth considerably more.

Now would this mean that your home is now worth the same $200,000 that your neighbor sold his for? Of course not, because you are not forced to sell under duress. It just means that your new neighbor got a great deal.

However, if you were a publicly traded company and had to abide by Mark to Market account rules, you and the rest of your neighbors would now have to say, by law, that your home was worth only $200,000 – not the $300,000 you would get for it if you actually sold. So what’s the big deal? Read on.

So how does this principle apply to banks?

Let’s say we decide to start a bank . . . call it XYZ Bank. We raise $2 Million to open our doors. Remember that our capital account is $2 Million. Banks make money by taking in deposits and paying low rates of interest to those depositors (maybe throw in a toaster too). We then take that money and make loans with it at higher rates. We keep the difference.

So, we turn that money into $30 Million worth of loans. This puts our ratio of loans to capital (our Capital Ratio) at 15:1 ($15 Million in Loans to $1 Million in Capital). This level is acceptable, as long as we can shoulder some losses and recover.

Because we are very conservative here at XYZ Bank, the loans we make require a minimum down payment of 30%, a credit score of 800 or better (that’s nearly an 850 which is perfect), proof of income and assets, a reserve of at least two years of mortgage payments (normal is two months) and income requirements that only allow 10% of monthly income to cover all expenses (normal is 40%).

We do this and our loans perform perfectly. We make lots of money. Nobody is paying late and our clients are sending us holiday cards. They love us . . . it’s a party. You and I are celebrating as we see our stock price soar.

But real estate values decline and, even though all of our loans are paying perfectly, we must re-assess the loan portfolio to account for the decline in real estate values, which leaves us with less of an equity cushion. We had a minimum 30% down payment, which means the loans were 70% of the value of our assets – until we account for the decline in the market. Now, our position goes from 70% to 90%. That’s riskier and, therefore, worth less than when our loans had a 70% safety position.

Our accountants tell us that we must “Mark to Market” or risk jail. They say our value is now reduced by $1 Million. Whoa!

We must take (or write down) this loss against our capital account. It is a paper loss – we don’t write a check, we have no late payers, no defaults, no bad business decisions. Still, we must reflect this $1 Million paper loss in our Capital Account, which drops from a $2 Million to $1 Million in value.

Here’s where things get problematic.

At this level, with $30 Million in loans outstanding, we now have a capital ratio of 30:1. At
this level of leverage, alarms begin to sound.

Our ratios are out of the safe zone; we could go under with just a few losses, deposits are in jeopardy. Hello FDIC examiner, we are on the watch list, the Securities and Exchange Commission (SEC) is asking questions and our stock starts to tumble. The business networks are showing coverage of our now troubled bank. We are in big trouble.

The problem, we are “over leveraged”. The solution? We have to “de-lever” . . . and do so
quickly. But there are only two ways to do that, and one of them isn’t really an option.

The first way is to raise capital, but that’s not going to happen when our ratios are out of whack and we are in serious trouble as well as on the FDIC watch list. It is unlikely that anyone will be willing to invest cash in XYZ Bank.

The other option is that we can sell assets, like the outstanding loans, which are increasing our capital ratio. Like your neighbor, who owned his home outright but needed cash for medical bills, we are now under duress. The paper we are holding has a lot of value, but we have to sell it quickly and, because of that, cheaply. So, we offload the loans at a loss, which exacerbates the problem because those losses further reduce our capital account.

Very quickly, like a flushing toilet, things start to spiral – we are going down.

The problem multiplies

The problem doesn’t stop there. The fire sale we just had on our loans makes things worse – even for the banks that bought them up and thought they were getting a great deal.

Under Mark to Market, the loans we just sold must be included in the comparables that other financial institutions use to value their assets. This is how the problem spread and got so bad so fast. Other good institutions, with good loans, have to mark down. Just like us, they become over-leveraged. It’s a chain reaction, all triggered by a well intentioned, but over-reaching accounting rule.

Financial institutions fold, sell, or freeze. Credit – the life blood of our economy – is cut off at the source. Because of a lack of available credit, home sales and refinances crawl, auto sales drop and jobs are lost. Additionally, the economy enters a recession.

During the last recession in 2001, the economy recovered relatively quickly thanks to $3 Trillion worth of home equity withdrawals. But, more restrictive programs, a lack of available credit, and lower home values will make it difficult for us to use home equity to help pull us out of a recession this time around.

Fixing the problem

The Federal Reserve has passed a rescue plan, which, over time, will provide some level of help. Some banks will get money to infuse into their capital accounts. Others can sell some assets to the government in an effort to “de-lever”.

But, the big thing that is not talked about, not well understood, is the part of the rescue plan that traces this financial crisis back to the source.

The US Congress has given the SEC its blessing to modify “Mark to Market” accounting. And by January 2, SEC Chairman, Chris Cox has to get back to Congress with ideas, if any, on how to fix Mark to Market accounting.

It won’t be eliminated, as we will not want to go back to the Enron days. But he is likely to adjust the Mark to Market provisions.

Here’s one potential solution – even rental or commercial real estate properties can be valued two ways:

1. The comparable sales method, which determines the value based on what other assets have sold for, which is the way Mark to Market work currently.
2. A cash flow method, which values the property based upon cash coming in.

If we see Mark to Market modified to use cash flow to value assets, without requiring a large percentage discounting mechanism – wow! What a shot in the arm that would be. We’d likely see the stock market rally, with financial stocks leading the uphill charge.

Consider that, in today’s market, fund managers are holding 27% of their assets in cash, compared with just 3% they held in cash when the stock market peaked in October of 2007. That means there is a lot of money on the sidelines that can push stock prices higher.

Additionally, think about the redemptions from hedge funds that eventually need to be put
back to work. That’s another reason to be optimistic about stocks in the first quarter of 2009 – provided that Chairman Cox modifies Mark to Market accounting in a meaningful way. And a good stock market helps individuals feel better about purchasing homes.

Additionally, stronger balance sheets for financial institutions will allow them to lend more money.

The bottom line

With some potentially very good news around the corner, there might be reason for optimism as we head into 2009.

It’ll be interesting to see what happens and we’ll keep you updated on the changes to the Mark to Market accounting rule.

In the meantime, I’ll take this opportunity to take my 2009 crystal ball out and share my Pasadena real estate market predictions with you:

1. Pasadena mortage rates will remain under 6% through the 2nd quarter of 2009 and will begin to rise in the 3rd quarter of the year.
2. We will see an influx of REO (bank-owned) properties hit the Pasadena real estate market around March and April of 2009. 
3. A lot more Pasadena sellers will try to negotiate a short sale with their banks which will provide opportunities for first time buyers and real estate investors.
4. Pasadena housing units available for sale will begin increasing as more foreclosures and short sales hit the real estate market.
5. Pasadena SFR (single family homes) have seen a drop of 10.5% in price per square foot from 2007 to 2008.  I believe the market will continue to see a decline in prices through June of next year of another 4 to 5%. 
6. We will start seeing a turn around in the market place by July of 2009 with the changes in the Mark to Market rules, additional first time housing programs and availability of conventional programs.

READ MORE:  Pasadena real estate market comparison between 2006 and 2007

What do you think of my Pasadena real estate predictions?  Agree or disagree?  Put your 2009 predictions in the comments below.

Would love to hear from you.

When I work with my home buyers and home sellers, we take this real estate data even further and narrow it down to the individual neighborhood. I recommend looking at real estate statistics within a 1/4 mile radius of the home that you are buying or selling.

For the purposes of this post, we’ll keep it a little more general, and look a how the city of Pasadena is weathering the housing market.

If

Looking at these Pasadena housing statistics side by side, it’s interesting to note the following:

• Median List price is 20% lower in 2008 vs. 2006
• There are properties for as low as $120,000 in 2008. The lowest priced home in January of 2006 was $459,000.
• Average price per square foot of Pasadena homes for sale dropped by 17.6%.
• The available Pasadena home inventory increased by almost 54%!
• It is taking twice as long to market a home now – almost 4.5 months.
• 44% of homes listed expire and have to be relisted by Pasadena realtors compared to only 17% in December of 2006. Main reason for re-listing Pasadena homes is incorrect and overly high pricing.
• Which leads to 2 out of 3 properties needing a price reduction – 40%.

READ More: Pasadena real estate market statistics – October 2008

State of Pasadena Housing Market by Chief Economist of California Association of Realtors

Search for Pasadena homes:

Take a look at this beautiful unit – in prime Pasadena location – minutes from Old Town Pasadena, South Lake Avenue district, the Gold Line and next to shopping:

[realestateshows]357380[/realestateshows]

UPDATE:  Open House January 31, 2009 from 1 pm until 4 pm.

This Pasadena condo will be open on Sunday, December 7, 2008 from 1pm until 4 pm.  Stop on by and take a look.

Additional information for your review:

List Price: $288,000

MLS#: 22118220

Year Built: 1981

Bedrooms/Bathrooms: 1 bedroom and 1 bath

Interior Square Footage – Data per Assessor: 728

HOA – $275

Parking – subterranean 1 space

Amenities – 3rd Floor Unit, Large Balcony, Inside Laundry, Pool

Offered for sale by Irina Netchaev, Pasadena Real Estate Agent

For a private showing, please call 626-627-7107

Description:

Located in the heart of Pasadena close to South Lake Avenue District and Old Town Pasadena, this 1 bedroom and 1 bathroom condo is waiting for someone to make it their own and lovingly update.

It is a 3rd floor, sun-filled, spacious unit with an oversized balcony (Southern exposure) facing greenery and offering extra privacy.

This Pasadena condo features a beautiful entry with wide double doors, central air conditioning and heating, dining area, eating bar and a fireplace. There is a stackable washer & dryer inside the unit. The complex itself is open and airy, with security access, subterranean parking for owners and guests and a wonderful pool and spa.

Close to public transportation including the Gold Line, next to shopping and restaurants.

Pasadena Real Estate Market Report – October 2008

Pasadena Real Estate Market Report – September 2008

How does this Pasadena condo compare to other 1 bedroom condos in Pasadena?

This condo, unit #425, is priced at $405 per sq. ft.

Last 3 condos at Prado on Lake sold averaged a sales price of $562 per sq. ft.

217 S. Marengo #301 1 br/1 ba with 614 sq. ft. sold at $552/sq. ft. (new construction)

355 South Marengo #101 1 br/1 ba with 728 sq. ft. is currently in escrow at $479/sq. ft. (updated)

360 South Euclid Ave #221 1 br /1 ba with 675 sq.ft., sold for $502/sq. ft.

If you would like to schedule an appointment to take a look at this Pasadena property and to see if you qualify to buy a home, please call Irina at 626-627-7107 or email at Irina@Irina4RealEstate.com

CLICK HERE FOR ALL PASADENA CA HOMES FOR SALE (Single Family Residences – SFR)

CLICK HERE FOR ALL PASADENA CONDOS AND TOWNHOMES FOR SALE

Click on the zip code below for a list of homes (SFR) for sale in tht zip code:

91101

91103

91104

91105

91106

91107

This month, I was able to catpure the median Pasadena home sales price and will be adding that information to all future reports.  Median home sales prices provide a more accurate picture since the median signifies that 50% of Pasadena homes sold for more and 50% of these homes sold for less.  Hope that you will find it useful.

Market Action Indicator for Pasadena’s real estate is currently in the buyer’s zone though not strongly so.  The 90-day Market Action Index stands this week at 22 so buyers should expect find reasonable levels of selection.  Inventory levels have been relatively consistent relative to sales.  Despite the fact that there is a relatively high amount of available inventory, this Buyer’s market is still seeing prices move higher.  Given inventory levels, these price conditions are relatively fragile.  If the market cools off further, the price trend is likely to reverse.

The highest sold home in Pasadena for October was at 485 South Grand Avenue, a 4 bedroom/4 bath luxury estate with 6,000 sq. ft. on a 24,345 sq. ft. lot which sold for $4,300,000 at 95.56% of its asking price.

The lowest sold home in Pasadena for October was 476 East Mountain Street, a 1 bedroom and 1 bath with 624 sq. ft of a 2,580 sq. ft. lot whcihc sold for $233,000.  This home sold over its original asking price of $226,900.

Overall, October’s single family residences sold at 95.20% of their asking price.

Housing Market Statistics for Pasadena California for August 2008 through October 2008:

Data compiled from ITEC (Pasadena Foothill Association Multiple Listing Service).

Search all Pasadena Condos for Sale in MLS (Multiple Listing Service):

Search all homes (single family residences) for sale in Pasadena MLS (Multiple Listing Service):

Search All Pasadena Foreclosures or Bank Owned Homes for Sale (MLS – Multiple Listing Service)

SEARCH
PASADENA CA HOMES FOR SALE (Single Family Residences – SFR)

SEARCH
PASADENA CONDOS AND TOWNHOMES FOR SALE

If you are interested in receiving a weekly Pasadena real estate market
report with the Market Price Index, you can request
the Pasadena Market Real Estate Report here and it will be emailed
to you automatically each Monday.  This is a report that I order specifically
for the readers of my website from Altos Research who specializes
specifically in real estate housing market activity throughout the country. 

If you are looking for a real estate deal, you came to the right place. I will be posting my “Dusty Deals” by area on a monthly basis right here for your review.

What is a “Dusty Deal” list? It is a list of homes for sale in Pasadena including homes, condos and townhomes that have been on the market for over 100 days. Are all of these great deals? Not necessarily. BUT, the seller has been actively marketing their homes for a very long time and is probably ready to deal.

Why are these homes on the market still? The most likely reason is that they were overpriced to begin with. The first few weeks of marketing a home for sale are the most critical weeks for any seller. If the property is overpriced, or not marketed correctly, it gets stale. Local real estate agents ignore these homes and avoid showing them to their buyers. Potential home buyers look these homes up on the internet, but wonder what is wrong with these homes since they didn’t sell.

My take on this is, if you are looking for a deal, these homes are the best place to start. Why? Home sellers are tired of showing their homes and most are ready to NEGOTIATE their price and SELL!

For a complete list of dusty deals for November – homes for sale in Arcadia, Alhambra, Altadena, Burbank, Eagle Rock, Highland Park, La Canada Flintridge, Monrovia and Monterey Hills, please visit – Dusty Deals for November 2008.   With the inventory of homes being at a record high, you’ll need to scroll down to find the city that you’re interested in.  It’s a very long post.

If there’s a particular city that you’re interested in getting a list for, please leave a comment and I’ll make sure that I include it in future posts.

So here’s a list of homes for sale in Pasadena California that have been on the market for over 100 days:

Dusty Deals list for September 08 – Pasadena, San Marino, Alhambra, Altadena, South Pasadena, Arcadia, Monrovia, Sierra Madre, Monrovia

Dusty Deals List for August 08 – Pasadena, Alhambra, South Pasadena, Monterey Hills, Altadena, Sierra Madre, Arcadia, Monrovia and San Marino

As you’re going through the list, please look at the last column titled DOM (Days on the Market). This will tell you how many days these homes have been on the market.

Are you looking to buy a home in Pasadena California? We are happy to give you all the information that might help you with your home purchase.  Please call us at   626-204-3340  or email Irina at Irina@Irina4RealEstate.com.