$700 Billion or No Deal? Home Loans Still Available!

Credit will dry up completely if we don’t inject $700 billion of our money into the system, we are being told. Well, where is the credit for home loans coming from this week, while representatives in Washington are being told taxpayers must hand this money over?

I get a monthly mortgage statement from Countrywide. Each and every month, including this month, Countrywide has sent refinancing, credit consolidation, or home equity loan offers to me and I’m sure other current customers. When will our economy overcome its penchant for chasing easy paper phoney money by producing nothing but debt?

I called Countrywide’s 800 number today out of curiosity, and asked the representative in Phoenix, AZ if there would be any trouble closing a loan and getting it funded if I met all the lender’s requirements. Absolutely not, the rep told me. As long as applicants meet Income, Credit Score, and Equity requirements, there are funds available. So, the business that was Countrywide (now Bank of America), is able to close home loans as of this week, as long as the applicant has all three of these: Income, Good Credit, Equity.

Still wondering about the shortage of credit, I called Citibank. Would I have a problem getting a home or refinancing loan funded there, assuming I met all the lender’s requirements? I’ve heard that it is very difficult to get credit right now. ”Citibank doesn’t have that problem,” their rep told me.

My brother, who lives in New York, told me that last week when he went into the bank, the teller asked him if he wanted a home equity line of credit. Some (most?) banks are still willing to bet on homes.

I understand businesses are suffering because short-term lending has become almost impossible to get. Perhaps some businesses, especially small businesses, have trouble meeting lending institutions’ high Income, Good Credit, and Equity requirements. I do sympathize with business owners, employers who provide jobs for fellow citizens, if they can’t get credit because their business isn’t as easy for a bank to analyze as a piece of real property.

Financing involves risk and far too many financial firms thought housing looked like a low-risk bet. I guess all those bankers just bet too much.

And we are being told that we should make good their bet, even though they placed it on guaranteed short-term riches (for themselves) instead of higher-risk long-term investment (for their shareholders and the American people). Who are the losers? All of us who want a strong American economy, and plenty of good jobs for our children in the future.

Perhaps other Southern California constituents can explain our financial system’s behavior another way. I’ll just echo Cindy’s advice: contact your representatives and make sure they know your opinion about how you want your piece of that $700 Billion spent.

In my opinion, $700 Billion of taxpayer money would be much better spent on long-term productive investments. For lots of other opinions, and extremely interesting commentary from all sides of the political spectrum, check out Calculated Risk. All the bloggers warning about a financial disaster looming were right after all.

South Pasadena’s 20s-Era Starter Gems

The South Pasadena School District’s high scores and good reputation, along with the small city’s quiet but central location, have kept home prices here much higher than in surrounding neighborhoods. This photo of the school district’s administration building, posted by Glimpses of South Pasadena, actually makes me want to work there.

Today’s post from the photographer, of this lovely 1920s manufacturing building in the heart of South Pasadena, got me thinking about what kinds of 1920s starter homes are available for families still trying to get into this high-priced good school district. Here are some startling numbers, and these are the lowest-priced single family home listings on Redfin, for around 1,000 square feet:

1800 Meridian Avenue
$474,900
2 bed/0 baths
1,042 sq.ft.
$456 per sq.ft.
On Redfin 26 days
Built in 1924, this property is listed as Craftsman style (you’d never guess it from the listing photo) and as a fixer (this you might guess, especially if you were told that the property was originally a Craftsman). It has no kitchen and no bathroom – hence the very low listing price per square foot for South Pasadena. The sales history indicates this is bank-owned; the last sale was for $515,643 in December 2007.

1941 Meridian Avenue
$585,000
2 bed/1 abath
990 sq.ft.
$591 per sq.ft.
On Redfin 7 days
Built in 1926, this Mediterranean style home has been completely renovated and brightly painted.

1823 Gilette Crest
$649,500
2 bed/1 bath
998 sq.ft.
$651 per sq.ft.
On Redfin 35 days
…and one price reduction already, from $689,950. This is another nicely updated but small Spanish style home.

Redfin’s neighborhood pages for South Pasadena show the median sold price at $514 per square foot for single family homes in 91030.

Meridian Avenue runs north/south through South Pasadena and Gold Line tracks cross it on their way to the Mission Street stop.

Photo of Meridian Avenue and the Gold Line courtesy of nathanus.

Arroyo Seco Scenes on View at Glendale Studio Tour

While banking and investment house CEOs and government executives met in New York last weekend, I took my own advice on this blog and went to the Glendale Open Studio Tour. From still life, to local landscapes, seascapes, and abstract works, it was a nice break from the bad financial news.

I saw some colorful abstract paintings at Sadco, a Brand Blvd. establishment I’ve been wondering about since I read Tropico Station’s post back in June. When I walked in, I found it was a custom jewelry shop with a large gallery space in the back where Alexander Sadoyan, the owner’s brother, displays his work.

I met one artist at a Chevy Chase canyon tour stop who paints scenes of Pasadena’s Arroyo Seco, including this lovely one on her daily art blog. For a less idealized view, Pasadena Daily Photo just posted a few photos of the Devil’s Gate Dam at the north end of the Arroyo, and included links to the Wikipedia history of the dam and the Arroyo Seco. Below is a great photo of the Arroyo, courtesy of Here in Van Nuys.

In and around the Arroyo Seco are some of Pasadena’s upscale neighborhoods. Here are a few listings south of the Rose Bowl:

1030 Stoneridge Drive
$1,249,000
3 bed/2.5 bath
2,007 sq.ft.
$622 per sq.ft.
On Redfin 19 days
This home is located in the prestigious lower Arroyo Seco area.

333 Anita Drive
$1,195,000 (originally $1,225,000)
3 bed/2.25 bath
2,443 sq.ft.
$489 per sq.ft.
On Redfin 52 days
With a view and a huge flat lot, this home is just west of the Arroyo Seco in the San Rafael area.

1193 Avoca Avenue
$1,285,000
3 bed/3 bath
2,550 sq.ft.
$504 per sq.ft.
On Redfin 80 days
In the Grace Hill neighborhood just east of the Arroyo Seco, this 1910 Craftsman was designed by architect G. Lawrence Stimson.

Listed Just Under $1 Million in Glendale 91202

After featuring a new $1.95 million listing in my last post, I wondered what was on the market in that 91202 area for half the price. My Redfin search turned up 5 properties with asking prices of $929,000 to $999,000. Recent sales comps (here on Redfin) would indicate lower prices for some.

1321 Virginia Avenue, at $999,000, showed up on Redfin nine days ago. This is a 3 bed/1.5 bath home with 1,825 square feet, thus $547 per sq.ft. I’ve travelled past this home on my regular route for years; about three or four years ago I watched the front of the house and its landscaping transformed into one of the jewels on the block. It sits on a fairly large lot, and the listing photos show a large back yard, again, newly landscaped, with a sparkling new pool. A lot of money was spent on this house: the last recorded sale was for $355,000 March 2001, and at $999,000 the listing language indicates that this is a short sale requiring bank approval. As Irvine Renter pointed out this week, Renovations Are Not Riches.

522 W. Kenneth Road came on the market 13 days ago at $995,000. This home is slightly larger, at 2,314 sq.ft., with 3 beds/2 baths, and also completely renovated. For a home with major upgrades in this neighborhood and of this size, its listing price of $430 per square foot matches the average sales comps exactly.

1529 Ard Eevin Avenue was just listed at $945,000. It has 3 beds/2 baths and 2,471 square feet and also sits on a large lot. Signature Spanish Revival homes are a hallmark of this neighborhood; this one sits on a quiet street and is in good condition, although needing cosmetic updates, according to the listing. It is the least expensive property on a square footage basis ($382) in my limited search, and below the average sales price over the past three months.

Million dollar bill courtesy of Simon Davidson.

Back to the 1920s in Glendale, California

Had enough of the Great Depression comparisons this week? Here is probably your only chance to experience the bright side of the 20s era: the Alex Film Society Vaudeville Extravaganza, an annual event in Glendale and Southern California’s only regularly produced vaudeville show, this Saturday, September 20, 8 p.m. at the Alex Theatre in Glendale. Six live acts, followed by three historic films, including a vintage newsreel and Charlie Chaplin’s 1917 film The Cure, make up the program.

The Alex Theatre, built in 1925, and restored and reopened in 1994, is “one of the most important surviving examples of grande Vaudeville and movie palaces of the early 20th century.” The Alex Film Society promotes and screens classic films at this classic location – I’ve seen many wonderful films on the big screen at the Alex. Its a definite asset to the city of Glendale. Upcoming films on the schedule include King Kong (October 25), and the society’s annual Three Stooges event (November 29).

Now back to the 1920s in Glendale housing: I stopped by a brokers’ open house yesterday to see a new listing. 850 Cumberland Road is landmarked as historical and a Mills Act Tax grant is in place as of September 2006. This is a notable week to be listing a property that was originally built in 1929. Many homes in the 91202 neighborhood were built during the 1920s and have sought after custom features; this one is among the larger properties in the neighborhood (4,271 square feet, on a 14,200 square foot lot). The listing price is also notable for this week (better have that down payment in a safe haven!): $1,995,000. It last sold for $1,500,000 in 2004.

There are twelve other Redfin listings in 91202 priced over $1,000,000; the Cumberland property ranks third on the list (if you exclude the $15 million Wonderview property).

Photo of the Alex Theatre courtesy of Ilpo Sojourn. 

Anyone for Stocks, Bonds, Real Estate? How About Art?

U.S. Treasury officials met with Federal Reserve and Securities and Exchange officials and the heads of Wall Street’s biggest firms yesterday night for another consecutive weekend seminar on the theme of the year, “How Did Things Get This Bad, and Is There Anything We Can Do About It?” Friday’s topic was Lehman Brothers imminent collapse, as reported on Bloomberg.com, the Washington Post, and the Wall Street Journal. Calculated Risk is host to at least 250 comments on this breaking story.

Stocks have gone up and down dramatically these past few weeks, bonds are tied to interest rates, and real estate prices are falling steadily – I see price reductions on most of my Redfin email updates (and I’ll list a few below).

I don’t give investment advice, but for anyone spooked by all the bad news in most investment sectors, with an appreciation for original art, and looking for something to do this Sunday afternoon, check out the the City of Glendale’s 5th Annual Open Studio Tour, September 14, noon-6 p.m. The opening reception will be held today at Brand Library Art Galleries from 3-5 p.m., and an exhibit with works of all the represented artists will be on display there through September 19. A total of 45 studios and businesses are participating in the tour – a list and the self-guided map is here. This colorful dragonfly photo is not part of the exhibit, but is very artistic – courtesy of ( Krikit ).

PRICE REDUCTIONS – PASADENA:

1939 Navarro Avenue
$485,000 (originally listed at $799,000)
4 bed/3 bath
3,056 sq.ft.
$159 per sq.ft.
On Redfin 213 days
Thursday’s post featured this large home with the lowest price per square foot in its Pasadena neighborhood. It was reduced in price on Friday, as I noted in the comment section, and my Redfin email update shows it reduced again today!

415 Avenue 64
$500,000
2 bed/1 bath
1,111 sq.ft.
$450 per sq.ft.
On Redfin 219 days
I featured this Pasadena 91105 property a few weeks ago. It was a short sale then, and the listing stated that the bank approved its sale at $550,000. The listing says nothing about last week’s $50K price reduction.

363 Montana Street
$574,900
1,971 sq.ft.
$292 per sq.ft.
On Redfin 172 days
This is all new construction, finished and placed on the market in March 2008. Originally listed at $650,000, this week it was reduced in price for the sixth time.

PRICE REDUCTIONS – GLENDALE:

3040 E. Chevy Chase Drive
$770,000
2 bed/1.75 bath
2,053 sq.ft.
$375 per sq.ft.
On Redfin 62 days

758 Omar Street
$569,000
1,810 sq.ft.
$314 per sq.ft.
On Redfin 29 days
After 29 days on the market, the listing price was reduced by $50,000 (originally $619,000).

1214 N. Everett Street
$769,000
1,928 sq.ft.
$399 per sq.ft.
On Redfin 53 days
The asking price was just lowered $60,000. The listing states that the price has been reduced for quick sale. This home is in the lower Rossmoyne area of central Glendale.

Check here for a complete list of Glendale area price reductions, and here for a complete list of Pasadena price reductions.

Pasadena 91103 – Low Home Prices, High Foreclosure Numbers

Foreclosures make up 10 percent of single-family home listings near Lincoln Avenue in Pasadena zip code 91103. In my narrowed search I found 15 foreclosures and 150 listings.

More than one Redfin forum user has asked about this area of Pasadena, wondering why its homes are much less expensive than in other areas. One reason is its reputation as a higher crime area in the city. A 17-year-old girl was shot to death here last August, and another homicide occurred several blocks to the north in May 2008.

Another is that while its location is central, many homes here are very small, of advanced age, or not well-maintained. A run up in prices during 2004-2006 occurred here as many homebuyers were priced out of other areas. The run back down in prices has been almost as dramatic as in outlying areas.

The average listing price per square foot for foreclosures here is $256, while the average for Pasadena is $330.

A few noteworthy foreclosures:

1467 N. Raymond Avenue
$299,900 (reduced from $389,900)
4 bed/2 bath
1,664 sq.ft.
$180 per sq.ft.
On Redfin 64 days
This is a bank REO that sold for $760,000 in September 2006.

236 Crystal Lane
$318,000
4 bed/2 bath
1,593 sq.ft.
$200 per sq.ft.
On Redfin 434 days
Sold before foreclosure for $595,000 in April 2005, this property has been reduced in price seven times since it first came on the market in July 2007.

1939 Navarro Avenue
$512,000 (originally $799,000)
4 bed/2 bath
3,056 sq.ft.
$168 per sq.ft.
On Redfin 211 days
This 1914 Craftsman sold for $684,500 in November 2005. It has been reduced in price 12 times since it came on the market in February and features the lowest price per square foot in the area.

Dramatically lower prices have attracted buyers to the neighborhood: 56 sales took place during the past three months, with an average $273 per square foot sales price, higher than the average foreclosure listing prices. See the complete Redfin list and link to neighborhood stats and trends here.

Using Google Chrome to Scan Favorite Listings in Glendale 91208

I downloaded Google Chrome and tried it out, right after I read on our Corporate Blog that it loads Redfin pages quickly (and on my computer, at least, Yahoo does not). Sure enough, the new browser loaded my Redfin favorites in half the time I’m accustomed to waiting, and it also quickly created a new tab for each favorite listing I selected.

TechCrunch affirmed Chrome as the fastest browser yet. I actually read through the terms of service before downloading, since random articles I’ve read about Google’s reach and business strategy have negatively impressed me, and apparently others as well. CNet investigated the terms of service, which were subsequently changed. I don’t usually follow Google’s latest business moves, but I also just read on LAist that NBC networks will now have ad placement by Google.

Back to real estate: sales of my favorite listings haven’t been brisk in Glendale. However, the reason a home is added to my Favorites list to begin with is usually because it represents a story about market dynamics, and that may have little to do with its salability.

Now for a quick look at all those Google Chrome tabs:

1643 Don Carlos Avenue
$1,425,000 (8/25/08)
This property was originally listed at $1,595,000 and reduced to $1,499,000.

2975 Santa Rosa Avenue
Taken off the market recently, this property was listed for sale at $689,000.

1650 Santa Maria Avenue
Also taken off the market, this property was listed for sale at $1,200,000, and later reduced to $999,000.

I searched on Redfin for a lower-priced and upper-range listing of interest in zip code 91208 (I got the message “We’re sorry but Redfin does not support your current browser.” I clicked on “Continue Anyway” and it worked just fine):

1760 Brook Lane
$399,000
2 bed/1 bath
765 sq.ft.
$522 per sq.ft.
On Redfin 225 days
This is listed as a fixer and a short sale, “reduced and needs to sell before it goes to REO.”

1405 Greenmont Drive
$1,018,500
3 bed/3 bath
2,775 sq.ft.
$367 per sq.ft.
On Redfin 5 days
This is a large one-story home, priced much lower than the average per square foot for the area, with a view of the Oakmont Golf Course and mountains on a “privately secluded lot.”

Photo courtesy of dannysullivan.

Taxpayers Are Bailing Out Fannie Mae, Freddie Mac

Friday night and Saturday morning are nice quiet times to step in and take control of a chaotic situation threatening not only the entire U.S. housing market, but U.S. and world financial markets. According to a Saturday update on Bloomberg.com:

Treasury Secretary Henry Paulson is preparing to announce plans to bring Fannie Mae and Freddie Mac under government control, seeking to halt the crisis of confidence in the companies that make up almost half the U.S. mortgage market.

Paulson met with Fannie Mae Chief Executive Officer Daniel Mudd and Freddie Mac CEO Richard Syron yesterday to tell them of the decision to put the companies into a conservatorship, where they would be removed from their jobs, according to a person briefed on the discussions.

The decision follows the Treasury chief’s repeated comments to lawmakers in July that he wasn’t likely to use taxpayer funds to prop up the federally chartered, shareholder-owned firms hit by $14.9 billion in losses the past year.

Is it still not likely taxpayer funds will be used? The Washington Post also reported this story, as did the LA Times and New York Times (all quoted here in LA Land). Pithy comments and lots of political ruminations on this mess can be found following today’s posts on Irvine Housing Blog and FreeRepublic, and I’m sure many other places as well.

The CEOs of Fannie Mae and Freddie Mac are being removed from their jobs. What I want to know is: how many senior managers in those organizations, at the FDIC, and in outside financial management positions, will be keeping their jobs? How much have these people earned creating (or not preventing) this mess?

Wild times are ahead for the U.S. mortgage market as Fannie Mae and Freddie Mac are restructured. What it means to anyone trying to get a mortgage in the near future, to the market for mortgage debt, and to anyone with a stake in the direction of housing prices, remains to be seen.

What it means to taxpayers is that they now have another very large entitlement obligation as a result of banks extending loans to people who couldn’t pay them back.

Photo courtesy of kevindooley.

Glendale, Pasadena Foreclosures Show Lower Percentage Drops

Glendale and Pasadena’s bank-owned listings are being offered at 10 to 40 percent off the last pre-foreclosure sale price. Discounts as steep as those Property Shark reported in outlying L.A. County areas and parts of the Valley (and reported by Anita and Christina on this blog) haven’t quite made it to these enclaves in So Cal.

I have found – and reported on – several properties here that sold for less than the lenders’ costs to take them back (check out this post, for example). It is easy to see a home’s sales history on Redfin listing or sales pages, and to download whole searches to Excel for analysis.

Today, I downloaded August 2008 Redfin sales data, and current MLS-listed foreclosures, for Glendale and Pasadena. My findings:

Average August 2008 Sales Price (226 sales of homes and condominiums):
Glendale: 114 sales, $349 average sales price per square foot
Pasadena: 112 sales, $386 average sales price per square foot

Current MLS-Listed Foreclosures (single-family homes and condominiums):
Glendale: 38 listings, $347 average listing price per square foot
Pasadena: 65 listings, $330 average listing price per square foot

A RANGE OF FORECLOSURE LISTINGS (% lower than pre-foreclosure sale price):

GLENDALE

1414 Thompson Avenue
$499,900 (75%)

3833 El Lado Drive
$899,900 (68%)

3907 La Crescenta Avenue, #203
$334,900 (88%)

PASADENA

1132 N. Raymond Avenue
$419,000 (61%)

314 S. Hill Street
$1,100,900 (74%)

276 E. Elizabeth Street
$384,900 (79%)

Photo courtesy of d&e