Pasadena Real Estate

Or, are you just listening to the white noise?

As I was getting ready to go to work this morning, I overheard a news report that my husband was watching about the real estate market.  What struck me as odd was not that it was yet another "chicken little" report about the downfall of the Los Angeles real estate values.  Let's face it, there's nothing like fear to get viewership.

No... what struck me as odd was that immediately after that dreaded real estate "for sale" sign, there was an image of a No Vacancy sign and a discussion about the difficulty renters are having finding good housing at a reasonable price.

So let's see... the prices are going down and the rents are going up, does anyone see an opportunity here?  Savvy investors do.

It's common sense, isn't it? 

There's an opportunity for investors to get into properties at a reasonable price and get them rented quickly.  Demand is there!

Now is also a great time to purchase that investment property at pretty decent interest rates. 

Finance costs will rise as the economy recovers, so trying to time real estate might not pay off - Justin Sullivan / Getty

Let's take a look at the price of homes in its relationship to the price of financing:

Scenario #1 - Price of a Pasadena home decreases 5% and interest rates increase .5%

Scenario #2 - Price of a Pasadena home decreases 10% and interest rates increase 1%

The assumptions for the above scenarios are 20% down and a 30 year fixed mortgage.

As you can see, even if the prices go down 10%, but the interet rate goes up by only 1%, your monthly payments will be about the same.  Interesting relationship between prices and rates.

With the rental prices going up, interest rates still being historically low and the home prices more affordable, the time could be right to buy a Pasadena home or investment right now.

The question is, is the time right for YOU to buy a Pasadena home right now?  I don't know.  It depends on YOUR individual needs.  

What I would suggest though, is that you get together with a Pasadena Real Estate agent who can sit down with you and take a look at your long term personal or investment plans.  Someone that can provide FACTS not conjecture and then make a decision that is right for YOU.

Also, there's an interesting article in Times Magazine that provides a level look at the housing market - see it here.

If you are ready to see if the time is good for you to buy a home, please do not hesitate to call me at 626.627.7107 or email me at Irina@Irina4RealEstate.com.