by Kathy Gibson | Feb 27, 2023 | Buying, Market, Neighborhood, Open House, Selling
Pasadena, CA Mon Feb 27 2023 This week the median list price for Pasadena, CA is $1,588,000 with the market action index hovering around 46. This is an increase over last month’s market action index of 44. Inventory has increased to 97. Home sales continue to outstrip supply and the Market Action Index has been moving higher for several weeks. This is a Seller’s market so watch for upward pricing pressure in the near future if the trend continues. South Pasadena, CA 91030 Mon Feb 27 2023 This week the median list price for South Pasadena, CA 91030 is $1,918,500 with the market action index hovering around 50. This is about the same as last month’s market action index of 50. Inventory has held steady at or around 8. Home sales continue to outstrip supply and the Market Action Index has been moving higher for several weeks. This is a Seller’s market so watch for upward pricing pressure in the near future if the trend continues....
by Kathy Gibson | Feb 23, 2023 | Buying, Home and Garden, Market, Neighborhood, Selling, Uncategorized
Did you know?* After peaking at $47.7 trillion in June 2022, the total value of US homes declined by $2.3 trillion, or 4.9%, in the second half of 2022. (Bloomberg)* Of homes purchased in January, 29% were all-cash transactions, up from 28% in December and 27% one year ago. (BARRONS)* The Federal Housing Administration will reduce the fee borrowers pay to have their mortgages insured by the agency by about $800 a year on a typical loan, or 0.3 percentage point. (Bloomberg)* In less than one month the price of lumber dropped over 27%….down over 75% off its 2021 high…….lumber is a good indicator of builder demand….. Compiled by Leonard Steinberg, Compass Manhattan Photo by Collov Home Design on...
by Kathy Gibson | Feb 2, 2023 | Buying, Market, Selling, Uncategorized
Five Considerations….About 10,000 Americans retire every day. Many own their (too large for their needs) home and were planning to downsize or move, but feel they should wait now that real estate markets have dipped off highs that surged between 2020 and 2022 in many areas: Why should they sell now? Here are some reasons why selling now might make sense:1. Liquidating a home now when all markets are down – including equity markets – allows you to buy replacement investments at lower prices with a stronger potential upside….including equities.2. Liquidating a home now allows you to earn more for your cash deposits that now produce much higher returns. Even a basic savings account delivers over 3%.3. Holding on to a large expensive home has carrying costs: insurance, maintenance, repairs, electricity, gas, mortgage payments, real estate tax payments. If markets recover in the next 2 years to where they were, will those gains outstrip the costs to carry this home?4. The lower the sale price, the lower your capital gains taxes too. Many who have owned their homes for many years may have large capital gains taxes beyond the $250k or $500k exemptions.5. In a down housing market with higher interest rates, job losses and a recession looming, first time home buyers are often more disadvantaged: the smaller homes that also appeal to retirees may be more affordable and attainable now than later when – not if – the economy bounces back with lowered interest...
by Kathy Gibson | Dec 14, 2022 | Buying, Market, Neighborhood, Selling
When and/or if a recession hits the US – although the definition of recession keeps evolving too – it will have to be the least surprising event in history. Never before in my half-century-plus of life have I heard the word ‘recession’ uttered, printed or broadcast more than in the past 6 months. Predicting a coming recession does not require being a genius. A recession is 100% guaranteed. WHEN that happens is guesswork and involves numerous indicators and conditions, although a ‘shock to the system’ or a ‘surprise’ can trigger one more unexpectedly. Covid lockdowns triggered a recession. Recessions are also susceptible to business cycles when economies are forced into ‘cool down’ mode after overheating and the money supply is tightened. Frankly, while all this recession-predicting and chatter is annoying and a bit of a downer, it is not too unlike being warned about anything early: preparing for a big hurricane with many days warning allows people to board up homes and do all sorts of things more calmly and thoroughly. Discovering and diagnosing a health issue very early usually allows a better and more effective cure too. So maybe while we bemoan all this ceaseless recession chatter – and the approach of a recession now, 2 months, 2 years or 2 decades from now – maybe we should celebrate the fact that collectively we are all acutely aware of its potential, and because of this we are being forced to be proactively defensive, prudent, careful, fiscally conservative, not arrogant, etc. A little fear can prevent all sorts of bad behaviors and encourage more creativity, innovation,...
by Kathy Gibson | Dec 12, 2022 | Buying, Market, Neighborhood, Selling
Pasadena, CA Mon Dec 12 2022 This week the median list price for Pasadena, CA is $1,445,000 with the market action index (MAI) hovering around 43. This is less than last month’s market action index of 45. Inventory has decreased to 125. The market has been cooling over time and prices plateaued for a while. Despite the consistent decrease in the Market Action Index (MAI), we’re in the Seller’s zone. Watch for changes in MAI. If the MAI resumes its climb, prices will likely follow suit. If the MAI drops consistently or falls into the Buyer’s zone, watch for downward pressure on...