Senate Extends Home-Buyer Tax Credit and Jobless Aid

Not a done deal yet, but promising news.  The Senate approved extending the new home buyer tax credit through April of 2010, including certain existing home owners in the credit, and raised the income ceilings on those who qualify for the credit.  Read the article from the Los Angeles Times here:

Senate Extends Home-Buyer Tax Credit and Jobless Aid

Halloween in Pasadena

From Pasadena Now:

Ghouls and ghosts, witches and warlocks will be prowling the streets of Pasadena this Saturday. There are many Halloween activities to choose from, here are some of the highlights: The PCC Orchestra will be performing A Sesame Street Halloween, Vroman’s will be holding their annual Halloween Party, there will be Goblins in the Garden at the Arboretum, Kidspace is offering a spooky time, Old Pasadena is offering tricks or treats and much more.

For more Halloween Happenings visit Pasadena Now’s event calendar.

Have a happy Halloween!

Is the Housing Market Finally Starting to Stabilize?

See the article below regarding the S&P Case Shiller Housing Index.  In our area, we are definitely seeing a pick-up in activity which is leading to price increases in some cases where there are multiple offers.  I had clients just last week who were one of 14 offers on a house in Eagle Rock.  Last week there was a house in San Marino that received twenty offers (!).  Not all houses are moving at this rate.  The key is pricing.  If a house is perceived as a great value it will attract multiple offers and may sell over the asking price (those two examples did — substantially).

Housing Continues to Stabilize: S&P/Case-Shiller® Home Price Indexes
by Alexander Miron

First Take

The S&P/Case-Shiller 20-city home price index fell by 11.3% during the three months ending in August from the same period last year. This decline was slightly smaller than had been expected. On a seasonally adjusted basis, the 20-city index recorded a 1% increase from the three-month period ending in July, continuing its recent trend of month-ago increases that began earlier in the summer. The 10-city composite index also recorded an improvement on a year-ago basis, falling by 10.6% in August.

The Numbers

• The seasonally adjusted S&P/Case-Shiller 20-city home price index climbed 1% during the three months ending in August from the three months ending in July, extending a string of increases that began in June. The 10-city index experienced similarly encouraging improvement over the month, also showing a gain of 1%.
• On a year-ago basis, the 20-city composite index suffered its smallest decline in 19 months, falling by 11.4%. This marks a substantial deceleration in the year-ago rate of depreciation from July, when the 20-city index stood 13.3% below its year-ago level. The 10-city index decreased by 10.7% from a year ago in August, compared with a 12.7% decline in July.
• Between July and August, existing-house prices rose in 16 of the 20 metro areas tracked by the seasonally adjusted 20-city composite index. Of these, San Francisco (+2.6%) registered the sharpest increase, followed by Minneapolis (+2.3%). Meanwhile, Cleveland (-1%) and Las Vegas (-0.8%) experienced the largest month-ago declines.
• From August 2008, existing-house prices suffered the largest decline in Las Vegas, losing nearly 30%. Although severe, this was a slightly smaller decrease than that reported during July. Phoenix (-25.2%), Detroit (-22.7%) and Miami (-18.9%) also showed large decreases in existing-home prices. Meanwhile, house prices in Dallas fell by a mere 1.3% over the year, as the house-price correction has largely bypassed this metro area.
• Measured from peak, the seasonally adjusted 20-city index has fallen by 29.9%, while the 10-city composite has declined by 30.9%.

Behind the Numbers

The S&P/Case-Shiller 20-city home price index fell at a slower rate from July to August, as the majority of metro areas tracked by the index experienced modest increases in existing-home prices. As measured by the 20-city composite, existing-house prices increased for the third consecutive month in August, marking a significant departure from the steady decline in the average price recorded earlier in the year. The sharp change in pricing comes amid a steady increase in single-family home sales that has siphoned off some of the nation’s excess housing inventory. Still, the picture is far from rosy, and existing-home prices are in jeopardy of resuming their decline later this year.

A rising wave of foreclosures and the removal of the federal government’s tax credit are two factors that could cause house prices to suffer additional setbacks this year. Even after accounting for the recent decline in the existing-home inventory, supplies of homes for sale remain elevated, and foreclosures are apt to increase as lenders attempt to sell repossessed properties. In addition, the success of the first-time homebuyer tax credit over the summer has likely pulled forward some sales of pre-owned homes that would have occurred later in the year. As a result, sales of existing homes may dip when the tax credit expires at the end of November, causing house prices to give back some of their recent gains.

Another Great Thing About Pasadena

The Black-Eyed Peas opening for U2 at the Rose Bowl? Live streaming worldwide on YouTube? An astronaut checking in from the international space station mid-concert?

Yes, all true, and thanks to a dear friend, my son and I got to go!

If you need another reason to live here, this is it. Check out the concert at this link.

Possible Second Wave of Foreclosures

There is a lot of talk among buyers about a possible second wave of foreclosures coming due to the number of adjustable rate mortgage resets that will come due in the next year.  The following is an insightful article by Peter Hong of the Los Angeles Times on why that may not trigger a flood of foreclosures.

“Feared Flood of Foreclosures in California May be Averted,” by Peter Hong

Deal of the Week

This week’s great deal is 60 E. Palm Street, Altadena, a totally renovated 3 bedroom, 2 bath Craftsman home on a nice street north of Altadena Drive. Price is $549,000!

Another beautiful home is 2450 Ridgeway in San Marino. The backyard is all courtyard, but it is lovely.

To see these or any other houses you might like, please call: 626-535-2948.

Pasadena’s Amazing Deal of the Week

This week’s amazing deal is the most exciting piece of property I’ve seen in a long time in Pasadena, IF you are an architect, builder, contractor, or have the stomach to re-hab a house.

Club House Drive is a gated, private road in the San Rafael Hills area of Pasadena that has its own private lake, meadow, and community pool for a small opt in/opt out homeowner’s assocation of about twenty homes.

1330 Club House Drive is a 3 bedroom, 2 bath home with 1444 square feet on an almost 20,000 square foot lot.  It has been completely gutted and needs to be rebuilt.  But for the price of $550,000, if you have the where-with-all to do it, this is a great opportunity to live in this special community.

This one will go fast, it was swarming with people when I went to see it on the brokers’s open house today.  Call me today if you want to take a look.

This Weekend in Pasadena

We have some great events coming up this weekend in the Pasadena area:

Great House of the Week

1882 Las Lunas Street is a totally renovated cottage in northeast Pasadena.  With 1,628 square feet, this home includes 3 bedrooms, 2 1/2 baths, wrap-around deck and mountain views.  If you would like to see it, give me a call!

S.A.F.E. Collection Center

Got HAZMAT or electronic waste and don’t know what to do with it?  Take advantage of the City of Los Angeles weekend drop-off, located nearby in Glendale.

A California driver’s license is required and you can only drop off 6 items per visit.  Print off this PDF for a handy reference:

S.A.F.E. Collection Center