The current theory is that communities like South Pasadena  have held their value pretty well over the last few years of economic crisis. This is partly true. They have held their value much better than Highland Park and Eagle Rock have. But the trend has still been down with South Pasadena over the last 3 years. It’s difficult to get a handle on the market just like it is in Eagle Rock, partly because few houses actually sell in each community, between 3 and 20 a month for South Pasadena, 7 and 14 for Eagle Rock. The average sales price has dropped about 30% over the last 3 years in Eagle Rock, about 24% for South Pasadena.

South Pasadena 3 Year Trend Graph

Does this mean that every house in South Pasadena is worth 24% less than it was in 2007? No.  And if a house sold in 2007, would it sell for 24% less today? No. But it does mean that buyers are very cautious about value. Let’s work our way back. Here’s the graph for the average sale price over the last 15 months:

South Pasadena 15-Month Trend Graph

 So the average sales price has dropped in the last few months. But if you look at the graph, you see the line zigs up and zags down all over the place. What is more significant is that in 2009, there were 4 months in which the average sales price topped $1,000,000, while only once so far this year.

What about over the last 4 years?  In 2007, there were 5 months that averaged over $1 million, in 2008, there were 6 months.

So it would appear that primarily in the last couple of years, the prices in South Pasadena have drifted down.

2007-2008 Data:

 2009-2010 Data: 

South Pasadena Data 2009-2010

It doesn’t look like we are on the fast road to recovery, does it? But we can take heart with the graph that shows that over the last 10 years, after all the ups and downs, we are still up 75%.

So South Pasadena is a robust market right now, with a good number of sales, fairly low inventory, and some really good homes for sale. And for those who take the long view needed for real estate these days, a very good long term investment.

Can you believe this kitchen is in a townhome that’s listed for $1,600,000? One of 12 limited edition residences at 633 South Lake Avenue.

 These last two photos are from 309 Grand, South Pasadena. This very special Spanish estate is on a half acre and is listed for $1,995,000.

Posted via email from tracyslarealestate’s posterous

South Pasadena has proven to be similar to Eagle Rock, having about doubled in value over our 9-year time span.

91030 South Pasadena 9 Year Graph

South Pasadena 9 Year Table

 

As you can see, the prices are higher in South Pasadena, but the curve has been similar to Eagle Rock.
In the last 2 years:

91030 South Pasadena 2 Year Graph

South Pasadena 2 Year Table 2007-2009

 

We see that prices didn’t fall quite as dramatically, but losing a quarter of a home’s value is no small number. It looks like prices have stabilized somewhat in South Pasadena, but we’re not seeing any healthy price increases at this time. Remember, in Eagle Rock we are seeing an actual trending up right now, but South Pasadena didn’t really have the big drop earlier that Eagle Rock did.

Why is that? Perhaps because South Pasadena isn’t as much of a first-time buyer market as Eagle Rock is?
Now let’s look at a zip code that is really not an entry-level marketplace, 91108, which includes San Marino:

San Marino 9 Year Graph

San Marino 9 Year Table

The general trend from 2000-2006 is generally up exactly like every other zip code around here, but over the 9 years, this zip code appreciated 82%, around 20% less than South Pasadena and Eagle Rock. But now, look at the spike in the asking price versus the sold price. I guess we’re thinking we’re the Beverly Hills of the San Gabriel Valley, aren’t we? But look at the table for the average sold prices in the last 2 years here:

San Marino Real Estate 2 Year Table

You can ask whatever you want for your property, but the fact is that people are going to pay what they (and the bank, if there’s a loan) think it’s worth. Look at March, 2009—one property sold! In January, only 3 sold. These are really small numbers to try to make any sense out of. This tells me that very few of these homeowners were either willing to sell in the worst part of the market, or that they absolutely had to. Voila! Upon scrutinizing the details on the March 2009 sale, I find that this was a corporate relocation sale. Most of the time, you won’t know from the public data what crisis might have forced a sale unless everything went over the edge to a short sale or a foreclosure.
Here’s the graph of the last 2 years for San Marino:

San Marino 2 Year Graph

It looks like San Marino was just as hard hit by the downturn as everyone else, as far as sold prices goes. And although the asking prices are going up, the sold prices are not. How long can this go on?

 

FHA raises Buyer Requirements

This just in: according to an article on www.Inman.com , Congress  and HUD (the US Department of Housing and Urban Development) is looking at raising down payment and credit score requirements and lowering seller maximum concession limits for FHA borrowers. This won’t add anything to FHA reserves, but it will significantly limit options for first-time buyers. Check out the full story at http://www.inman.com/news/2009/12/3/fha-will-tighten-in-2010.

The City of Los Angeles has long had a reputation for unbridled development and a disregard for the treasures of the past, but you would never know that if you first looked at the City’s own preservation website, www.Preservation.LaCity.org.  Here’s a great link from that website to a brochure on Caring for Your Historic Home: http://preservation.lacity.org/files/HPOZ%20Rehabilitation%20Guide_0.pdf.  Perhaps one reason the Office of Historic Resources, a part of the Department of City Planning, appears to have its act together is because the former head of the Los Angeles Conservancy, Ken Bernstein, is now the Manager. 

Also on the website is a list of all the Historic Preservation Overlay Zones in the City as well as a list of proposed HPOZs.  Another link is Search for a Property, http://www.preservation.lacity.org/status which gives instructions how to research possibly historic properties through the City’s websites. 

To complement that website, I offer you the Should I Stucco My Wood Frame House?  brochure that I had updated a few years back.

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