Pasadena CA Real Estate

I just came back from voting today. My polling place was at the Fellowship Hall in the San Marino Community Church. There were no lines and the process was very organized. The setting of the San Marino Community Church was beautiful so I thought that I'd capture some of these moments on film.

Starbucks and Sierra Cup in Monrovia are giving away free cups of coffee to voters and Ben & Jerry's is giving away free ice cream. So, go out, vote and celebrate with coffee and yummy ice cream!

Want to learn more about San Marino California, visit our San Marino City Guide page!

I have been getting multiple calls and emails from Pasadena Real Estate blog readers asking me to post a list of foreclosure properties, also known as Real Estate Owned (REO) propertiesin Pasadena and surrounding cities.

If you are interested in additional information on any of these homes or would like to set up an appointment to discuss buying a bank owned property, please give me a call at 626-204-3340 or email me at irina@irina4realestate.com

Also, feel free to search the multiple listing service at your convenience. This home search service allows you to create your own account where you can create multiple home and condo searches for Pasadena, San Marino and other areas. As new home listings become available, you will be notified via email automatically. This way, you will always have the most current and latest home inventory information.

Over the last couple of days, I've been taking long walks around Pasadena and San Marino and looking at all the amazing decorations that are gracing our beautiful homes.  It's no small feat to put some of these up.  I, for one, am not much for decorating - maybe it's the lack of time or just not enough creativity - I don't know.  My decoration was three huge pumpkins (2 of which unfortunately walked away off of my porch a few days ago) and a door hanger.

This morning, as I'm watching my kids put together their costumes, get the cookies and cups ready for school parties and talk about this evening's activities, I'm reflecting on how commercialized Halloween is getting.  This is not going to be a rant, but out of curiousity, I wanted to look at some Halloween facts as presented by National Retail Federation.

• "This year, the average person plans to spend $66.54 on the holiday, up from $64.82 one year ago. Total Halloween spending for 2008 is estimated to reach $5.77 billion."
•  "This year, consumers will spend an average of $24.17 on Halloween costumes (including costumes for adults, children, and pets). People will also be buying candy ($20.39 on average), decorations ($18.25) and greeting cards ($3.73)."
• National Retail Federation estimates that total Halloween spending is expected to reach $5.77 billion
• Halloween remains most popular with young adults, as 18-24 year-olds plan to spend $86.59 on the holiday, the most of any group.

Are folks trying to get away from the economical roller coaster by focusing on Halloween?  Is it because, Halloween falls on a Friday this year, that adults are taking more of an effort in decorating and getting ready to celebrate?

As my social media buddy, Dave Taylor asks - What will Halloween look like 20 years from now?

What are you doing around Pasadena to celebrate Halloween this year?

Whatever you do STAY SAFE and HAVE FUN!!!

• By: Brian Brady
• America's #1 Mortgage Broker

We analyze Pasadena mortgage rates by examining the mortgage-backed securities market and its reaction to economic data and events.  Today, the Federal Reserve cut the Fed Funds rate to an historical low of 1%:

The Fed funds rate target is now 1%, the lowest level in more than four years. In announcing its decision, the Federal Open Market Committee cited a drop in spending by consumers and businesses, and predicted that consumption may slow further due to tighter lending standards.

"The pace of economic activity appears to have slowed markedly," the FOMC said in a statement, "owing importantly to a decline in consumer expenditures."

Why's the economy in the tank?  You just aren't spending enough money, Joe the Plumber.  Of course, you can't borrow any either so you're hesitant about spending.   Hence, the Fed cut in rate.  Normally, a Fed cut should be followed by a RISE in mortgage rates but it looks like the mortgage-backed securities market anticipated the cut a week ago. 

Let's take a look the crystal ball (market chart):

See what's happening here?  Two weeks ago, we had a six day BIG drop, which caused rates to rise from 5.875% to 6.5%.  That drop was followed by a 5 day rally, which brought rates back down to 5.875%.  Then, we had a six day BIG drop, driving Pasadena mortgage rates back up to 6.5% (today)...

...and I think the market overreacted which means I think we'll see lower mortgage rates into the beginning of November.

This is the kind of volatility we've come to expect.  Pasadena mortgage rates should drop to 6.25%, pause, then drop again to the 6% level or below.  No guarantees but November closings should get a peek at 6% or better rates soon.

I've been posting monthly real estate market report updates on this site for cities around Pasadena. One of the key real estate indicators that I refer to is the Market Action Index or MAI.

What is the Market Action Index ? And, why does the Market Action Indicator matter?

Residential house prices are a function of supply and demand, and market MARKET ACTION INDEX conditions can be characterized by analyzing those factors.

My research company, Altos Research uses an algorithm to divide a Buyer's Market from a Seller's Market. The red line at 30 is that line.

For example in the graph below for Pasadena's real estate market, it has been a COLD, BUYER'S MARKET since end of 2007 with the MAI hovering quite a bit under the balanced market of 30, closer to 15. Now, this graph is for the entire Pasadena real estate market. Each zip code within the city has a different MAI.

Come back to this site to watch this index for sustained changes: if the index falls into the Buyer's Market zone for a long period, prices are likely in for a downward correction.

The Market Action Index (MAI) illustrates the balance between supply and demand using a statistical function of the current rate of sale versus current inventory.

An MAI value greater than 30 typically indicates a "Seller's Market" (a.k.a. "Hot Market") because demand is high enough to quickly gobble up available supply. A hot market will typically cause prices to rise. MAI values below 30 indicate a "Buyer's Market" (a.k.a. "Cold Market") where the inventory of already-listed homes is sufficient to last several months at the current rate of sales. A cold market will typically cause prices to fall.

If you are interested in receiving a weekly real estate market reports with the Market Price Index, you can request 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.

I currently offer real estate market reports for Pasadena, Alhambra, San Marino, South Pasadena, Monterey Hills (under Los Angeles 90042), Arcadia, Altadena, San Gabriel and more.

If you have additional questions about the state of the Pasadena housing market, please call me at 626-627-7107 .

Irina :-)

PR: wait... I: wait... L: wait... LD: wait... I: wait... wait... C: wait... SD: wait...

This Arcadia real estate market report is a few weeks overdue. My apologies for the delay, but I was struck down with the worst flu that I ever remember having. Oh well... it's over and done with. I hope at least. :-)

Single Family Home sales in Arcadia remained at 31 closed escrows just like in August, down from the high of 50 home sales in July. Inventory increased a bit to 129 listings, but essentially remained flat if you look at the last five months of data. Arcadia homes are selling at 96.33% of asking price in September, with 9 out of the 31 selling at or over asking.

Arcadia condos have seen an increase in sales in September, but the inventory remains pretty stable. If the rate of sales will hold and inventory remains the same, it'll take approximately 10 weeks to move the existing inventory. Arcadia home sellers are still overpricing their condos and are listing them on average at $317 per square foot. The sold price per square foot has fallen under $300.

Arcadia townhomes had an increase in inventory mainly due to a new complex that hit the market in early September at 1016 - 1020 West Huntington Drive. These townhomes were built in 2007 and are selling in the low $800,000 range. Again, listing price per square foot ($347) on most of the townhome listings is way higher than the actual sold price per square foot ($293) in September. Arcadia townhome sellers need to track the real estate trends a bit closer or they will end up sitting on these homes for a long time and then reducing home prices more significantly to bring in a buyer. The absorption rate increase speaks clearly to the overabundance of townhome listings vs. buyers.

Also Read: Arcadia Real Estate Market Trends for August 2008

Arcadia Real Estate Market Statistics for September 2008:

Data taken from ITEC (Pasadena Foothills Association MLS service)

SEARCH ARCADIA HOMES FOR SALE (Single Family Residence)

SEARCH ARCADIA CONDOS AND TOWNHOMES FOR SALE

For weekly updates on Arcadia real estate market activity, please feel free to request market analysis reports with detailed information by clicking here. These reports are gathered and updated by Altos Research and will be emailed to you with my compliments.

• By: Brian Brady
• America's #1 Mortgage Broker

Friday, Pasadena mortgage rates jumped from 5.875% to 6.25% as mortgage-backed securities traders joined the world wide sell-off.  Global stock markets plunged Friday and the Asian markets were weak for Monday.  Investors world wide don't want to be invested in ANYTHING.

When the world panics, we FLOAT mortgage rates.  So, roll the projectors!  The movie "Float Club" is playing all week.

Interestingly enough, gold isn't skyrocketing in price.  Long held as a "safe haven" during times of turmoil, investors are opting to hold their portfolios in cash instead:

Bullion is down 15 percent this month as the dollar climbed to a two-year high against the euro and the Standard & Poor's 500 Index headed for its steepest monthly loss since 1938.

`We're seeing some consolidation in the market today as investors pause for breath following the roller-coaster we had last week," Zhu Lv, research manager at Shanghai Tonglian Futures Co., said from Shanghai today.

Gold for immediate delivery gained as much as 1.7 percent to $746.91 an ounce, and traded at $735.33 at 10:29 a.m. in Singapore. The metal fell below $700 on Oct. 24. Silver for immediate delivery was up 1 percent at $9.4575 an ounce.

Gold still benefits from its safe haven properties, although these days, more and more are choosing to hold just cash instead, so it won't be surprising to see gold below $700 again," said Zhu.

What's that mean?  It means that while investors are cautious, they aren't completely terrified and that bodes well for mortgage-backed securities.  When investors buy mortgage-backed securities, mortgage rates drop; that's what we think will happen in the next 7-10 days.

I cautioned borrowers to lock in all October closings last week when Pasadena mortgage rates dipped below 6%.  That opportunity had a short-lived window.  Like all panics, reason eventually prevails.  Central banks world wide are slashing interest rates to avoid an economic recession.  This make US dollar denominated investments, especially mortgage-backed securities more attractive.

Hold out for a mortgage rate below 6% if you're closing in November.

Originally posted on Millionaire Real Estate Lender

Sierra Madre's real estate statistics for the month of September are below.  In September, only 9 homes closed escrow in Sierra Madre.  That's a significant drop from August.  At the same time, the number of new Sierra Madre homes on the market remain pretty constant.  Steady listing numbrs and lower Sierra Madre home sales result in a significantly higher absorption rate.  It will take 19.3 weeks to sell the existing Sierra Madre inventory if no additional homes come up on the market and if the rate of sales remains the same.

Looking over the September listing inventory for Sierra Madre shows that home sellers are still signifcantly over pricing their homes.  On average, sellers are asking $463 per square foot.  While buyers were willing to pay only $417 in September.

The lowest priced Sierra Madre home is $360,000 at 261 Grove Street.

The highest priced Sierra Madre home is $1,999,999 at 380 N. Lima Street.

There are five available Sierra Madre condos and townhomes for sale.  The rate of sales for the last two months have been at two sales each month.

See: Sierra Madre Real Estate Market Report for August

Sierra Madre Real Estate Market statistics for September 2008:

 Real estate data based on information from ITEC (Pasadena Foothills Association MLS service)

For weekly updates on the real estate market activity, please feel free to request market analysis reports with detailed information by clicking on How's the Market page on this Pasadena real estate blog.  These reports are gathered and updated by Altos Research and will be emailed to you with my compliments.

Posted by Irina Netchaev, Monterey Hills Real Estate Agent   626-627-7107   

SEARCH SIERRA MADRE HOMES FOR SALE

SEARCH SIERRA MADRE CONDOS AND TOWNHOMES FOR SALE

By: Brian Brady

America's #1 Mortgage Broker  

Pasadena Mortgage rates are finally below 6.0% again.  If you're closing on your Pasadena home purchase in October, take any rate under 6.0% and lock it in to closing.  In the beginning of the month, I suggested to wait for lower rates if you were closing in the last two weeks of October.  I said:

You can safely delay mortgage locks if your closing after October 17th.  Delaying your lock is a bit different from a "float" recommendation.  It means that you should expect lower rates and jump on one when you feel it's "good enough". The market should remain volatile.  The par rate (with no yield spread premium to the originator) should drift as low as 5.625% in the next 60 days but it may have to go through 6.125% to get there.

We made it through the 6's but never lower than the original 5.875%.  If I still think there is room for improvement in mortgage rates why am I recommending to lock for October closings?

My strategy is more about limiting higher rates than gambling for better rates.  I try to avoid unnecessary risk by being biased to locking unless there is irrational fear.  While I was dead on about the irrational fear in the mortgage-backed securities market, my timing was off.  If you're closing a Pasadena home loan this week, and delayed your lock, I might have cost you some money.

The mortgage-backed securities markets are finally able to focus on the economy now that the drama is over on Wall Street.  Economic fundamentals drive mortgage rates and the economy doesn't look real healthy. 

Expect rates to improve to 5.625% and fluctuate between 5.625% and 6.25% through the rest of the year.

If you're closing on your Pasadena home after November 1, 2008, delay that lock until 5.625% is available.  All October closings, take what you can get today.

The majestic Castle Green in Pasadena California.

©Irina Netchaev

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Another great article by my friend Joanna Dehn Beresford in the Best Of Pasadena issue of Pasadena Weekly this week.  Granted, it mentions yours truly, but it also gives some sound advice on what to look for in a Pasadena Real Estate Agent.

Buyers and sellers have good reason for hope in economic crisis

By Joanna Beresford 10/16/2008

"These are the best and worst of times for real estate," says my favorite real estate agent, Irina-the-Tsarina Netchaev. "The worst is uncertainty. Buyers wonder if it's the right time to buy.

Sellers don't know if they should sell, rent or hold. And agents have to keep up with constant changes in the industry, work a lot harder to make the same number of sales and serve their clients in the same way that they did in the past."

But even during economic tumult, Irina is no pessimist. Her family struggled to reach America, a country that her grandmother had dreamed of for years; when they arrived in the United States, Irina and her parents had left fear and despair behind them in Kiev.

"The best thing about the era we're in right now is the opportunity!" Irina says. "Opportunity for buyers to get into a home at a more affordable price. Opportunity for sellers who want to move or trade up, to exchange their present home for the home of their dreams. It's also an opportunity for savvy and creative agents who want to build their business, and position themselves for developments in the market."

I can't claim unequivocally that Irina is the best real estate agent in the San Gabriel region, because there are so many realtors in the area. Many of them are terrific, and most of them I've never even met. But I do know that Irina is among the best. I know that she delights in the artistry of her craft. I know that she's learned a great deal from her corporate experience, and also from her experience as mother to teenage children. I know that she's an avid student of life, real estate and human nature - and I know that she's not perfect.

"It's really important to have a consultation before making any decisions or commitments," says Irina, alluding to the chemistry and compatibility involved in the agent-client relationship. "I can't help everyone."

The best Pasadena real estate agent will demonstrate several, fundamental characteristics. Some of these are self evident. Like, if you're selling a home, you don't want to hire an agent who's going to nosh on your leftovers, drink out of the milk carton and indulge in a shower in the master bath during a lull in open house activity.

Second, don't mistake "top producer" for "best agent." The truly gifted agent may spend more time, therefore earning less money, to properly serve a client, than the agent who maintains a madcap momentum of million-dollar home sales and massive commissions. Often snubbing other agents in the process, which is another thing you should consider if you want the best agent in the business; find someone who cultivates friendly, supportive relationships within the real estate community.

Now more than ever, we all need each other in the course of buying, selling and living in our homes.
Most experts caution against working with a part-time agent. The full-time agent tends to be more focused, informed and dedicated than the guy who's still hanging onto his day-job.

Also, among other things, the best agent knows how to take a decent photo, write a decent description and return calls in a decent amount of time. It also helps if your realtor knows how much it costs to replace a 50-year-old furnace or rewire a converted garage.

The best real estate agent will provide you with references and comprehensive market analysis. He will negotiate effectively on your behalf. He will, according to real estate coach, broker and author Jennifer Allan, put your needs above his/her "need for a paycheck."

Obviously your agent should know the region intimately. And who wouldn't want to know Pasadena intimately?

"Where else can you find a sunny, 76-degree climate?" asks Irina. "Where can you be an hour away from skiing, 40 minutes from the ocean, surrounded by chic boutiques, theater, museums, culinary schools, academia, upscale restaurants and amazing hole-in-the-wall dives - all within a few mile radius of tree-lined streets and quiet neighborhoods? It's an amazing place to live and work!"

The thing is, the beauty of Pasadena persists through good times and bad, and the pleasures of living and working here make our community shine among the best-of-the-best idyllic regions in the world. The best real estate agents share our passion for the landscape, climate and community and their passion creates productivity.

"The example of my grandma following her dream," Irina says, "the courage that it took for my parents to leave their homeland with almost nothing and make a life in this country has instilled in me the idea that anything can be accomplished if you just dedicate yourself and are clear about your goals and passions."

Contact Joanna Dehn Beresford at truewrite@yahoo.com.

September was a slow home sales month for San Marino.  There were only eight homes that were sold.  These luxury San Marino estates ranged from $805,000 to $2,580,000.  Three of the homes were under $1.5 million and five were over.

1.  2370 Sherwood Road, San Marino - Listed at $1,549,000 and sold for $1,600,000 - SOLD OVER ASKING It was on the San Marino real estate market for only 18 days - this home was priced correctly and showed beautifully.

2.  2822 Gainsborough Drive - Listed at $1,920,000 and sold for $1,829,053.

3.  2855 Devonport Road - Listed at $1,880,000 and sold for $1,860,000.

4.  2890 Monterey Road - Listed at $1,850,000 and sold for $1,990,000.  SOLD OVER ASKING

5.  20 Mill Canyon Road - Listed at $2,888,888 and sold for $2,580,000

Information gathered from ITEC (Pasadena Foothill Association of Realtors)

If you are ready to start your San Marino luxury home search or thinking of relocating to San Marino and would like more information, please visit our San Marino website here.

READ MORE:  San Marino Schools are #1 in California again!

Every Thursday, real estate agents get together to preview new San Marino homes that are listed for sale.  This week, there were five San Marino homes available for preview.

You can find information about this week's San Marino homes for sale by clicking here.

Disneyland is giving the best present of all - a free Disney ticket to the happiest place on earth.  The only condition is that you have to visit Disneyland on your birthday.  Why not?  What a fun way to spend your birthday!  So visit the Free Disney Ticket site here.

I found the Disney information on a great new website - new to me, but has been around for awhile.  It's called Fitness for Busy Moms and is run by my Altadena neighbor, personal fitness trainer - Stephen Cooper.  Stephen offers great exercise and relaxation tips that are quick to read and easy to incorporate into our schedule.  Check Fitness For Busy Moms website out.  You'll be glad you did.

What websites are you reading?  Share them here.  I'd love to hear about them - spread the love!

By: Brian Brady

America's #1 Mortgage Broker

If you're closing your loan after Friday, I left you naked (not locked).  I told you that the fundamentals of the economy would bring rates lower after the bailout was announced.  Rates were at 5.875%, today they're at 6.5%.  What's in store for the rest of the month?

Eric Holloman of Rate Link offers this two-minute research report about why "headline risk" should be replaced by economic data as a determination of mortgage-backed securities pricing.  If he's correct (and I think he is), the next three days will be important for the direct of mortgage rates through the end of the year.

I'm still recommending that you float your Pasadena mortgage rates; I believe we'll see rates come back down under 6% within the next 7-10 days.  If the economic data suggest that we are NOT headed for a recession,mortgage  rates will stay in the 6.25-6.75% range.  If the data are as indicative of a downturn as I think they will be, lower rates should be on the horizon.  As always, keep checking back.

Originally posted on Long Beach Real Estate Home

San Gabriel single family home inventory is on the rise.  In September 88 homes were on the San Gabriel market compared to 68 in August.  The average days on the market has decreased to 70, but the absorption rate increased to 4.5 months (18.2 weeks) mainly due to increased inventory compared to the stagnant number of homes sold. 

The homes that were sold last month ended up closing escrow at 97.44% of asking price and were on average 1,521 sq. ft.  Most homes were 2 to 3 bedrooms with 2 baths.

The lowest priced home listing in San Gabriel is at 322 E. Angeleno Avenue - offered at $259,000 (reduced from the original price of $305,000)

The highest priced home listing in San Gabriel is at 616 S. Ramona Street - offered at $2,195,000.  This San Gabriel estate has been on the market for over two years now.  Price remains the same.

If you look at the San Gabriel statistics below, you'll notice that there was an increased number of San Gabriel townhomes that went under contract or pending.  This is due to a newly built development at 128 E. Broadway.  5 out of 7 pending townhome sales were in that complex and were all priced between $538,000 to $548,000.  Even though these townhomes were a bit on the high end of the price per square foot spectrum, buyers seemed to have jumped on them and were willing to pay a premium for living in a newly constructed complex.

The new development at 153 Junipero Serra Drive didn't do as well as the one on Broadway.  3 of the townhomes have expired and were removed from the market.  Developer is probably reviewing the pricing prior to relisting them for sale.

Lots, and I mean, LOTS of condos came up on the market in San Gabriel.  12 new listings compared to only 1 in August.  Yikes!  this increased the absorption rate to 78 weeks.  The sales remain minimal at one a month.  Interesting phenomenom is occuring.  Condos are priced higher per square foot ($349.08) than townhomes ($315.18) in San Gabriel.  San Gabriel condo sellers and their real estate agents need to get more realistic or they will just be wasting their time and efforts.

San Gabriel Real Estate Market Statistics for July 2008 through September 2008: