Archive for the ‘Glendale, Pasadena’ Category
August 9, 2008
Public Storage Inc., based in Glendale 91201, just reported a 500% increase in quarterly net income from one year ago (40 cents per share, vs. 8 cents per share last year). The stock climbed $4.53, or 5.7%, in morning trading yesterday, according to this AP report.
Located in an equestrian area of smaller homes (some of which I featured on this blog two days ago), the corporate headquarters of Public Storage sits on a corner with a view of Griffith Park.
While foreclosures mount and homeowners lose their homes, self-storage facilities are seeing a boom in many distressed areas. This ABC story filed Friday from the San Jose area quotes a storage facility owner who claims he no longer goes looking for business–it is coming to him.
Calculated Risk mentioned some of the sadder details of this increase in self-storage demand back in May of this year, quoting a NY Times article, which elicited quite a few comments. And Guz’s World published a post titled Downturn Stocks just last week, naming several stocks that should go up during the recent downturn, with Public Storage number two on the list.
Just a few blocks from Public Storage, here are three more homes listed on Redfin:
1604 Garden Street
$469,000
2 bed/1 bath
912 sq.ft.
$514 per sq.ft.
On Redfin 31 days
225 Winchester Ave
$619,000 (originally $659,000)
2 bed/1 bath
1,258 sq.ft.
$492 per sq.ft.
On Redfin 87 days
1519 Randall Street
$756,000 (originally $837,000)
4 bed/2 bath
2,182 sq.ft.
$346 per sq.ft.
On Redfin 105 days
August 8, 2008
Unsolicited home equity loan pitches and refinancing offers made up about 20 percent of my mail two years ago. The volume and language of these offers bothered me: clearly someone would profit if they convinced me and other homeowners to get deeper in debt.
It wasn’t easy money for homeowners. Now it turns out that home equity lines of credit aren’t easy money for banks either. According to Financial Week:
…losses on home-equity loans soared to $2.4 billion as of the end of the first quarter, from $273 million 12 months earlier. National banks, which hold about half of all home-equity loans, sustained as much loss from this type of credit in the first quarter of this year as they did in all of 2007.
Several major financial institutions have taken steps to freeze open HELOCs in recent months. Mortgage Insider notes that many homeowners still counting on access to home equity cash are angry at the turn of events. The earlier story he reported of a mortgage broker out of work, upset when his HELOC froze, elicited some sarcastic comments on his blog.
Financial Week continues:
Banks can find some shelter from losses on home-equity loans by freezing access to existing lines of credit and restricting access to new ones, and they have already done so. But they won’t be able to avoid losses on loans already granted and on lending lines already drawn down.
The level of losses on existing home-equity loans, especially those made between 2005 and 2007, will depend partly on the purpose of the loan. Those used for downpayments are more likely to default those those used for house renovations. Losses will also vary by locale, as have those on primary mortgages. But Mr. Gumbinger noted that such distinctions may not matter much if home prices keep falling.
“The key issue is that until we see home prices stop declining and start increasing again, the risk to lenders will continue,” he said, adding that he sees no major improvement before the end of the year. “Its going to take time.”
And during that time (which I believe will stretch on longer than the end of this year), all of us will suffer. The economy will contract as banks restrict access to credit or fail, and as homeowners lower spending or walk away from their debt.
Believe it or not, there are still boosters out there urging homeowners to take on additional debt. This blogger used Morgan Stanley’s recent home equity line of credit freeze notice to urge people to use their credit now or lose it!
Housing Doom is understandably proud of its 2006 post on the FDIC’s HELOC concerns. It points out that the FDIC itself predicted each step in this economic crisis in a 2004 fourth quarter report:
…the FDIC looked in their crystal ball and saw 2006. It would have been comforting to see the FDIC accurately assess the difficulties, had they not appeared to encourage risky loan practices. The report specifically dealt with HELOC concerns (Home Equity Line of Credit), but addressed concerns with the mortgage industry in general as well.
Here’s an excerpt from the FDIC Outlook 2004:
…when will home prices ultimately level off, and could they actually decline in certain high-priced metropolitan areas? Because HELOC interest rates are typically tied to benchmark short-term interest rates, rising rates make it more expensive for borrowers to service their debt. Higher rates could also dampen demand on the part of new homebuyers, thereby slowing the rate of home price increases. Should home prices stagnate or fall, the most important effect for lenders could well be an erosion in the equity position of some homeowners that will marginally reduce their incentive to repay the HELOC.
The full FDIC report is worth reading. Government oversight did a fine job of predicting this crisis, but a poor job of preventing it. I wonder if the United States Postal Service’s lighter load of junk mail these days is significantly offset by notices of home equity line of credit freezes and notices of default.
Recent Posts:
Foreclosures Still Going Up in Los Angeles
Live by the 16th Ranked College in the States
New Homes in Texas vs. Foreclosures in Glendale 91201
August 7, 2008
I saw starting prices “from the low $130,000s” on new homes of 2,000+ square feet during my July trip to Texas. Yes, Texas is a distant starting point for assessing affordability here in Southern California, but its not a different planet.
This week, back in Glendale, 91201, 80+ year-old homes under 1,500 square feet are listed at close to $500,000, even as foreclosures! Are escalating foreclosures really bringing the California market back to affordability as the Foreclosuretruth blog claims? From a Texas viewpoint, I’d say we aren’t anywhere near there.
Socalbubble.com shows a California foreclosures chart indicating an all-time record, and says:
78 percent of those entering the foreclosure process end up going through foreclosure. Considering that there is a record number of notice of defaults, we are ensuring years worth of upcoming foreclosures to push down prices.
Will years of upcoming foreclosures push down prices to a central Texas level? A look at the numbers below, especially the craziness of peak pricing on many of these smaller, older homes, has me doubting that the California real estate market will ever behave rationally.
I do believe tighter lending requirements (greed and lax lender oversight is my topic for another day), a glut of unsold and REO inventory, and a generation of burned real estate investors might moderate the insanity in the future.
In case anyone from Texas would like a virtual real estate road trip of Glendale 91201, here are some statistics from Redfin:
Zip code 91201 shows 40 sales in the past three months (11 in May, 15 in June, and 14 in July). Some of these are clearly bank purchases.
Average sale price: $554,165
Average price per square foot: $389
SALES:
1218 Irving Avenue
$611,150 (7/25/08)
1,808 sq.ft.
$338 per sq.ft.
1360 Winchester Avenue
$558,329 (7/24/08)
1,795 sq.ft.
$311 per sq.ft.
FORECLOSURES:
There are 4 foreclosures listed in 91201 on Redfin. The average listing is $389 per square foot and has been on Redfin for 157 days.
1241 Irving Avenue
$699,900
3 bed/3 bath
2,162 sq.ft.
$324 per sq.ft.
On Redfin 199 days
Sold September 2006 for $950,000, and August 2007 for $610,811.
1411 Lee Drive
$599,900
2 bed/1 bath
1,294 sq.ft.
$464 per sq.ft.
On Redfin 70 days
This home sold in November 2005 for $738,000, in February 2007 for $870,000, and then went back to the bank in December 2007 for $689,076.
1726 Lake Street
$549,900
2 bed/2 bath
1,454 sq.ft.
$378 per sq.ft.
On Redfin 199 days
This home sold in March 2005 for $600,000, and in November 2007 for $522,037.
1515 5th Street
$529,900
2 bed/1 bath
No square footage listed
On Redfin 161 days
This home sits next to a large apartment building, and across the street from a church which operates a nice preschool, daycare facility, and after-school daycare program. It sold November 2006 for $550,000, and in November 2007 for $456,480.
LISTINGS:
In addition to foreclosures there are 45 active single family home listings in 91201, a significant percentage of which are REOs. The averages:
Listing price: $654,500
Price per square foot: $420
Days on Redfin: 111
These are the lowest-priced:
337 Sonora Avenue
$475,000 (originally $530,000)
2 bed/1.5 bath
1,300 sq.ft.
$365 per sq.ft.
On Redfin 97 days
Last sold in August 2006 for $615,000; probably a short sale.
429 Sonora Avenue
$499,000 (originally $580,000)
3 bed/2 bath
1,482 sq.ft.
$337 per sq.ft.
On Redfin 80 days
1231 Linden Avenue
$519,000 (originally $770,000; the price has been reduced 5 times)
3 bed/2 bath
1,818 sq.ft.
$286 per sq.ft.
On Redfin 291 days
This is listed as an “approved short sale.” It last sold in August 2005 for $580,000.
1414 Thompson Avenue
$525,000 (originally $549,000)
3 bed/2 bath
1,776 sq.ft.
$296 per sq.ft.
On Redfin 41 days
This is a bank-owned foreclosure, advertised as “just reduced!!”
August 1, 2008
Short sales are surging on the lower-priced end of Pasadena’s real estate market. Searching Redfin for listings in 91104, I found a few decent single-family homes with over 1,000 square feet priced under $500,000. Looking at each listing, I found that most of these were short sales, or foreclosures after unsuccessful short sale attempts.
To me this looks like a record in Pasadena real estate listing history. Although I’m not attempting an analysis here, I welcome comments from anyone who is studying the matter.
If you are interested in Pasadena history beyond the recent starter home short sale surge, LA Brain Terrain is publicizing a free (reservations required) noontime series of lectures beginning today at the Pasadena Museum of History. The Museum location is the beautiful Fenyes Mansion, pictured here on Pasadena Daily Photo. LAist blog readers close to Pasadena: here is your chance to fulfill one of the blog’s recommended New Year’s Resolutions: checking out Pasadena’s many museums and cultural attractions.
As for short sale history, here are four homes just east and north of the museum, all over 1,000 square feet and all priced just under $500,000:
815 North Marengo Avenue
$480,000 (originally $580,000)
3 bed/3 bath
1,472 sq.ft.
$326 per sq.ft.
On Redfin 28 days
This home was built in 1906. The listing states that this is a short sale with trustee sale taking place August 22.
1985 Santa Rosa Avenue
$499,000
4 bed/2 bath
1,740 sq.ft.
$287 per sq.ft.
On Redfin 30 days
This is not listed as a short sale, but the last sale price was $639,000 in 2006.
885 North Euclid Avenue
$450,000 (originally $544,000)
4 bed/2.75 bath
1,294 sq.ft.
$348 per sq.ft.
On Redfin 120 days
Public records show this as a duplex (I was wondering how 4 bedrooms and 3 bathrooms could comfortably fit into 1,294 square feet). This sold in December 2006 for $645,000, and this July 14 for $385,000. Since it has been on Redfin for four months, it appeas as if the lender foreclosed and kept it on the market.
1946 North Los Robles Avenue
$450,000
2 bed/1 bath
1,346 sq.ft.
$330 per sq.ft.
On Redfin 3 days
The listing says only “short sale!!!” This last sold in May 2005 for $620,000.
July 30, 2008
There are no July home sales to date in the Montrose area of north Glendale, and I found only two June sales in my search on Redfin. There were 23 sales altogether, most occurring in May, with an average sale price of $342 per sqare foot.
Here are the two June sales:
3531 Rosemary Avenue
$745,000 (sold 6/10/08)
$450 per sq.ft.
Last sold in 1998.
1721 Broadview
$540,000 (sold 6/2/08)
$387 per sq.ft.
Last sold for $551,538 in April 2008; this is likely a foreclosure sale.
South of the 210 freeway, there are 25 active listings in Montrose, but only two (listed below) are close to the price of a starter home. The third and final listing here has been on the market for almost six months.
Averages
Listing price: $669,000
Price per sq.ft.: $433
Days on market: 88
2743 Sycamore
$459,000 (originally $479,000)
2 bed/1 bath
850 sq.ft.
$540 per sq.ft.
On Redfin 12 days
No recent sale records.
3018 Manhattan Avenue
$509,900 (originally $529,000)
2 bed/1 bath
1,750 sq.ft.
$291 per sq.ft.
On Redfin 40 days
The listing states this is a “Fannie Mae owned property,” and “approved for express path financing.”
2752 Sycamore
$710,000
3 bed/1.75 bath
1,547 sq.ft.
$459 per sq.ft.
On Redfin 187 days
This last sold in 2005 for $500,000. It was extensively remodeled in 2006.
July 28, 2008
This low-mileage review covers a local sports venue instead of real estate, but those looking to buy a home in Glendale or Pasadena will be affected by Dodger game traffic if they drive between downtown Los Angeles and the two cities to the north, so excuse the digression, and be warned.
Blogdowntown reported that many fans lined up to catch the first free trolley to Dodger stadium July 25; city officials rode along as well.
The trolley is great news for those of us living farther from the stadium than this intrepid writer, who recently decided to walk two miles to a game instead of driving to the parking lot.
Dodger fans using the service will save a few dollars on parking and gas, but I doubt it will noticeably reduce pre- and post-game gridlock. Eliminating that will take a full-scale transit plan, which does not appear in the Dodger’s “Next 50″ initiative, as blogger Militant Angeleno points out.
Militant Angeleno also wrote that he and other trolley riders didn’t get out of the stadium parking lot any faster than fans driving their own cars on Friday night. Perhaps the Dodgers could clear a special lane for the trolley so riders can save time as well as money.
As I wrote, the trolley service is great news. However, it does not remove the bottleneck that baseball games create in the surrounding neighborhood. The Dodgers’ five year renovation plan includes a new entrance, plaza, restaurants, shops, a museum space, a central ticketing facility, and two terraced parking structures. So within five years, cars will be stacked vertically as well as horizontally, and there will still be no clear alternative to parking.
Why not reduce the number of parking spaces (as Pasadena appears to be considering for its business districts), and increase the number of transit options for fans coming from all directions? That’s certainly more appropriate for a plan intended to take the Dodgers through the next 50 years.
As for bike parking, a StreetsblogLA cyclist at first couldn’t locate the bike racks at Dodger Stadium. When they were located, this post reported they were right next to the designated smoking area. Again, a plan for the Dodgers’ next 50 years should take the growing population of cyclists into account.
I will suggest another building project for the plan, one I’ve seen in place at other major league ballparks: a Little League field, complete with stands, snack bar, restrooms, and scoreboard, built on the grounds of the parking lot. It will further reduce parking lot area, add green space, and give neighborhood leagues another available field.
July 25, 2008
Redfin readers looking for starter homes under $500,000: check out the walkable, mixed-use neighborhood of Adams Square, which is along both Beeline and Metro routes. Glendale’s new branch library at the square opens to the public tomorrow, Saturday, July 26 at 1:30 p.m. The Adams Hill Homeowners Association home page has details on the library party and on the neighborhood.
The library building is a visual anchor for the surrounding small business/residential district. The bottom-line benefit to local business remains to be seen, but aesthetically it is very positive. The benefits to residence include wireless access, internet stations, and an all-new Glendale Public Library facility with city-wide staff dedicated to keeping current on both technology and outreach. The Glendale Public Library blog stays current with reading lists, book reviews, and author quizzes.
Residents here successfully fought to have a mini-park located near the square; its central feature is a very small Art-Deco service station dating from the 1930s. Completed and dedicated in November 2007, it was documented and photographed by a transplant to Adams Hill in his Franklin Avenue blog.
The Glendale News Press reported on July 24 that the median sale price for Adams Square homes in June reached $440,000, a 32.2 percent drop from last year. Nine foreclosures in this neighborhood were recorded in the second quarter of this year.
Two Adams Square foreclosures are listed on Redfin:
1445 Marion Drive
$413,250 (originally listed at $470,000)
2 bed/1 bath
1,311 sq.ft.
$315 per sq.ft.
On Redfin 66 days
This is classified as a fixer-upper, and the listing says it “potentially has some un-permitted additions (buyer to verify permits).”
1505 Wellesley Drive
$250,000
2 bed/1 bath
866 sq.ft.
$289 per sq.ft.
On Redfin 84 days
This bank-owned property is being sold for land value only, strictly as is, cash offers only.
For buyers not interested in building up sweat equity, here are a few listings, including some starter homes under $500,000, that sound move-in ready:
1022 E. Windsor Road
$450,000 (originally $525,000)
2 bed/1 bath
1,303 sq.ft.
$345 per sq.ft.
On Redfin 123 days
1416 E. Garfield
$475,000
2 bed/1 bath
928 sq.ft.
$512 per sq.ft.
On Redfin 19 days
This is a probate sale with no court confirmation necessary.
1203 Princeton Drive
$479,000 (originally $549,000)
2 bed/1 bath
1,128 sq.ft.
$425 per sq.ft.
On Redfin 177 days
This listings says “subject to bankruptcy court approval. property sold as-is.”
1125 Princeton Drive
$599,000
3 bed/1.5 bath
1,460 sq.ft.
$410 per sq.ft.
On Redfin 70 days
This 1929 2-story Spanish home, just a few blocks from the library, has hardwood floors, coved ceilings, and a remodeled kitchen.
1273 Crescent Drive
$795,000 (originally $839,000)
4 bed/2.75 bath
2,419 sq.ft.
$329 per sq.ft.
On Redfin 94 days
This 1929 Mediterranean home has tiled steps, an updated kitchen, and a living room with period details.
July 22, 2008
California enacted a homeowner loan law this week, but it is not a loan bailout for homeowners upside down on their mortgages or behind in their payments. Proposals in these areas are going to have to clear many hurdles and are encountering a lot of opposition and resentment, concentrated in forums like stopthehousingbailout.com.
The new law described in the Los Angeles Times Greenspace blog allows cities and counties to make low-interest loans to homeowners for installation of solar panels and other energy efficiency improvements. Homeowners pass along the loan to a new owner if they sell, reducing their investment risk.
I’ve wondered when considering solar panels: how sustainable and environmentally friendly are the materials used to make them? A Pasadena Pundit post titled Solar Power is a Net Energy Sink, Not a Source, has an answer to that question from someone in Tasmania of all places (and you have to scroll down past the San Francisco Homeless post to find it).
What’s involved in installation? One blogger provided this detailed introduction, also mentioning she was employed by a commercial roofing corporation that can install solar panels along with other roof components.
What incentives do cities currently offer homeowners for installing solar systems? For Pasadena homeowners, they are listed here, along with links to more detailed information.
In Pasadena’s sunny Historic Highlands, there are many Craftsman-style homes with low-pitched roofs. I’m not a handyman or contractor, so I can’t say how easy solar retrofitting would be on any of these residences. Here are some sales and listing data from Redfin:
Sales data show 17 homes sold during the past three months in the immediate neighborhood at an average of $396 per sq.ft. This home, which sold for $520,000 and closest to the average on July 2, has 3 beds, 2 baths, and 1,293 square feet. The tax records show an assessment of $678 for the 2007 tax year, so it hadn’t changed owners in decades.
Active listings:
1255 E. Lexington Street
$755,000
3 bed/1.75 bath
2,136 sq.ft.
$363 per sq.ft.
On Redfin 44 days
This is a two-story bungalow built in 1913 with several recent upgrades.
1385 N. Hill Avenue
$625,000
5 bed/3 bath
2,176 sq.ft.
$276 per sq.ft.
On Redfin 102 days
This home was built in 1890 and sits on a large lot.
1100 E. New York Drive
$2,985,000
3 bed/3.5 bath
4,960 sq.ft.
$602 per sq.ft.
New Listing: on Redfin 1 day
This three-story 1905 Craftsman home last sold for $1,780,000 in 2006.
July 21, 2008
Canada Boulevard follows a northward slope up through Verdugo Woodlands, a real uphill workout for walkers. Driving north I can hear my car straining to switch gears. Driving south, I am always reminded of how easy it is to gain too much speed here, and of some terrible accidents along this road.
Metro and the Glendale Beeline have stops along this route, a main thoroughfare between downtown Glendale and its own suburb within a city, Montrose. Verdugo Woodlands is bordered by Verdugo Park to the south (on the left in this photo) and the Oakmont Country Club to the north.
My random sampling of homes on Redfin here turned up many that sold, or are on the market, for the first time in decades. While it is a difficult time to sell, owners with a lot of equity and a low tax base have an important advantage. The average listing here has been on the market for 84 days and is $396 per sq.ft.
Two recent sales:
1635 Del Valle Avenue
$720,000 (7/3/08)
3 bed/2 bath
1,495 sq.ft.
$481 per sq.ft.
1617 Country Club Drive
$690,000 (6/11/08)
2 bed/2 bath
1,426 sq.ft.
$483 per sq.ft.
Tax records in the following Redfin listings show that sellers have owned these homes since before the 1980s run up in prices:
2975 Santa Rosa Avenue
$689,000
3 bed/1.75 bath
1,685 sq.ft.
$409 per sq.ft.
On Redfin 25 days
1650 Santa Maria Avenue
$999,000 (Originally listed at $1,200,000 in February 2008)
4 bed/2.75 bath
2,611 sq.ft.
$383 per sq.ft.
On Redfin 158 days
1643 Don Carlos Avenue
$1,499,000 (Originally listed at $1,595,000 in May 2008)
4 bed/3 bath
3,242 sq.ft.
$462 per sq.ft.
On Redfin 77 days
July 18, 2008
Residential real estate transactions closed within 10 percent of asking prices in Glendale and Pasadena during the past three months, according to data gathered by Redfin and presented by CEO Glenn Kelman at the Westin Pasadena Red Carpet event for homebuyers this week. (See the chart and a link to the Power Point slides here.)
Glenn gave attendees a great rundown of real estate sources and their pros and cons. He also covered Redfin’s extensive search features and the fine points of negotiating in today’s market.
What stood out to me in his comments was: 1) though 20 to 40 percent of inventory in Southern California is distressed, sellers’ situations, bidding wars, or bank requirements are moderating bargain prices, and 2) buyers are getting more time to evaluate their purchase: contingency periods range from 14-21 days in this market, while two years ago they averaged 7-10 days.
I actually found three price increases on Redfin this past week. This Glendale home went up $20,000 in price; the listing states “Short Sale Approved.” A Pasadena townhouse went from $410,000 to $555,000 with no evident explanation, but someone obviously needs more money. This Orange Grove townhouse is back on the market at $55,000 more than its original listing price. It must have fallen out of escrow; its listing says “must sell!”
Closing within 10 percent of listing price seems impressive, but perhaps sales are occurring after price reductions. Against three price increases, I counted 59 price reductions in my Glendale and Pasadena Redfin email updates this past week. The smallest price cut was $5,000, the largest was $292,000, and the average was $43,000.
Also during this week, 16 listings went from active to off market or contingent (into escrow), while 23 listings went from off market or contingent back to active status, meaning they most likely fell out of escrow. In this difficult market for both buyers and sellers, Redfin’s homebuying class is definitely worthwhile.
Here are some of the interesting price reductions in Glendale and Pasadena this past week:
3065 E. California
Pasadena 91107
$2,188,000
5 beds/4.5 baths
4,318 sq.ft.
$507 per sq.ft.
On Redfin 24 days
This large Mediterranean home sitting on more than one-half acre with tennis court, guest house, and multiple amenities came down $292,000 in price in less than one month.
1830 Calafia Street
Glendale 91208
$731,405
3 bed/2.5 bath
2,411 sq.ft.
$303 per sq.ft.
On Redfin 34 days
This home just north of Glendale Community College was reduced by $38,500. It is listed as an REO. It sold for over $1,000,000 in 2007.
1321 Carmen Drive
Glendale 91207
$790,000
3 bed/3 bath
1,726 sq.ft.
$458 per sq.ft.
On Redfin 239 days
According to the listing, this home is proudly seated on a beautiful tree-lined street. It was listed at $1,049,000 in 2007, reduced in January 2008 to $975,000 and just last week reduced another $185,000 to $790,000. It last sold in June 2005 for $765,000.
