South Pasadena has proven to be similar to Eagle Rock,Â having about doubled in value over our 9-year time span.
We see that prices didnâ€™t fall quite as dramatically, but losing a quarter of a homeâ€™s value is no small number. It looks like prices have stabilized somewhat in South Pasadena, but weâ€™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 didnâ€™t really have the big drop earlier that Eagle Rock did.
Why is that? Perhaps because South Pasadena isnâ€™t as much of a first-time buyer market as Eagle Rock is?
Now letâ€™s look at a zip code that is really not an entry-level marketplace, 91108, which includes San Marino:
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 weâ€™re thinking weâ€™re the Beverly Hills of the San Gabriel Valley, arenâ€™t we? But look at the table for the average sold prices in the last 2 years here:
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 itâ€™s worth. Look at March, 2009â€”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 wonâ€™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.
Hereâ€™s the graph of the last 2 years for San Marino:
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 Â 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 wonâ€™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.