Below are the July 2008 home sales figures for Arcadia and a couple surrounding cities.
|
CITY |
HOMES SOLD | MEDIAN PRICE | YOY CHANGE |
| ARCADIA | 76 | $633,000 | -9.57% |
| TEMPLE CITY | 35 | $550,000 | -8.18% |
| MONROVIA | 37 | $488,000 | -9.96% |
| PASADENA | 117 | $510,000 | -23.52% |
| SOUTH PASADENA |
13 | $750,000 | -11.76% |
| SAN MARINO | 14 | $1,191,500 | -22.38% |
**Edit: Added Sierra Madre**
SIERRA MADRE 8 $800,000 -17.95%
The June 2008 housing numbers are in so I’ll leave these up over the weekend. We’ve gone ahead and compiled the figures for the entire first half of 2008. I would love to here your thoughts!
Arcadia Homes Sales Data
Something tells me that this trend will continue for the rest of the year. This data shows that the “high-end” homes aren’t selling like they did during the peak of the bubble. And you know why? It’s because anybody who could afford the 20-30% downpayment on a million-dollar plus property is probably smart enough to know that real estate appreciation is dead for the next several years and they are better off investing that cash.
Have you heard about Wachovia and their whopping $8.8 billion loss due to the housing and credit crisis? That is no small change folks. Our friends on Wall Street are currently trading assets at pennies to the dollar because what used to be a hot item (i.e. real estate) is now considered the worst investment anybody could hold.
Of course, you already know this. Housing was never meant to be commonly traded as a liquid asset and it never will (except during a bubble!). But tell that to the 200+ sellers currently on the market and you’ll sure to be stoned.
Despite all the housing doom and gloom news, 33,024 homes were sold in California last month. According to DataQuick, it still “made for the slowest May since 1995 …”
Foreclosures throughout the state plowed through any hopes that Southern California had hit rock bottom.
The median price paid for a home last month was $339,000, down 4.2 percent from $354,000 for the month before, and down 30.0 percent from $484,000 for May a year ago when the median was at its peak. –dqnews
So how did Arcadia and its neighbors do? Were these cities able to buck the trend? The figures below are year-over-year change in median prices (i.e. May 2007 to May 2008).
ARCADIA
SOUTH PASADENA
PASADENA
TEMPLE CITY
MONROVIA
SIERRA MADRE
I predicted that this Summer would continue to break records in terms of declining values and it looks like May got the party started. Screaming headlines like this from the LA Times will no doubt add fuel to the already raging fire…
Median home price in California drops 30% in May
Not everyone is in distress though. Those who have been patient and held off on buying will have plenty of affordable homes to pick from when this crisis plays itself out. It looks like the media is also starting to realize this:
Zip Codes: 91006, 91007
Current Market Listings as of June 7th, 2008*
Properties for Sale: 224 (-19)
Median Listing Price: $759,900 (1.32%)
Weekly Foreclosure Update*
Properties in Foreclosure: 27(+2)
Properties in Pre-Foreclosure: 66 (-9)
*+/- is compared to previous week’s data.
Property and foreclosure numbers obtained from U.S. Census, ZipRealty, Trulia, Yahoo Real Estate and Foreclosure.com. Market listings and price data obtained from DataQuick News.
Zip Codes: 91006, 91007
Current Market Listings as of May 31st, 2008*
Properties for Sale: 243 (+13)
Median Listing Price: $759,900 (-1.15%)
Weekly Foreclosure Update*
Properties in Foreclosure: 25 (0%)
Properties in Pre-Foreclosure: 75 (+9)
*+/- is compared to previous week’s data.
Changing landscape for Realtors
Apparently, we’re not the only ones that think the average Realtor’s job description is about to change. Jeff Jarvis writes an excellent article on why this is so in Realtors, Prepare to Lose Your 6 Percent.
The only reason — only reason — that Realtors could hold onto their high commission for such little value and work is that they kept information away from the marketplace, making it inefficient.
Despite the changing role of Realtors, I still believe real estate professionals are invaluable in the selling and buying process. I see many FSBO (for sale by owner) listing which could really use some help. It just so happens we came across this photo today to reinforce that idea:
Property and foreclosure numbers obtained from U.S. Census, ZipRealty, Trulia, Yahoo Real Estate and Foreclosure.com. Market listings and price data obtained from DataQuick News.
Zip Codes: 91006, 91007
Current Market Listings as of May 24th, 2008*
Properties for Sale: 230 (+10)
Median Listing Price: $768,880 (0%)
Weekly Foreclosure Update*
Properties in Foreclosure: 25 (0%)
Properties in Pre-Foreclosure: 66 (-3)
*+/- is compared to previous week’s data.
REOs Crashing the Party
Yesterday I wrote about how we will start seeing more homes going for under $300 per square foot after this housing crisis plays itself out. Foreclosures will lead the way in dragging down home prices and we have a prime example right here:
250 E Floral Ave
Arcadia, CA 91006
This is an REO currently listing for $459,900 ($282 per sf.).
It was bought in 2005 for a whopping $630,000 ($387 per sf.). Aside from speculation, I can’t see anybody purchasing this home for a penny over $400,000. If we go with the standard appreciation calculation, then even $400k is asking too much:
2001 purchase price: $258,000
Apply 7 years of appreciation:
3% – $317,307 ($195 per sf.)
4% – $339,510 ($208 per sf.)
5% – $363,031 ($223 per sf.)
It is no wonder this home went into foreclosure! The lender is taking a minimum $171,000 loss on this property and they only have themselves to blame. Although some knife catcher may come in and purchase the REO for over $459k, the listing price alone is enough to further drag down the neighborhood’s value.
Despite what some people may say, I don’t see wealthy Asian immigrants snapping up homes fast enough in this area to maintain our current bubble prices.
Property and foreclosure numbers obtained from U.S. Census, ZipRealty, Trulia, Yahoo Real Estate and Foreclosure.com. Market listings and price data obtained from DataQuick News.
Zip Codes: 91006, 91007
Current Market Listings as of May 17th, 2008*
Properties for Sale: 220 (+2)
Median Listing Price: $768,880 (-0.80%)
Weekly Foreclosure Update*
Properties in Foreclosure: 23 (+2)
Properties in Pre-Foreclosure: 65 (+4)
*+/- is compared to previous week’s data.
We want your feedback
Although AHB has been running for less than 4 full months, we have been contacted by several media outlets (large and small) inquiring about why we started this blog. The answer is simple:
We are local renters who have work and saved hard in order to purchase a home in Arcadia one day. Despite the buying frenzy between 2003 and 2006, we saw how far off home prices were compared to both historical and fundamental values. As this was the situation, SavedbyGrace and I created this simple website, Arcadia Housing Blog, to track real estate trends in the city of Arcadia and its adjoining neighbors.
With that in mind, I wanted to welcome our readers this week to provide their feedback regarding AHB. Are there any features or specific information you would like to see that could possibly enhance the quality of this blog, its content or even your user experience?
This is your home as much as it’s ours so please feel free to leave your suggestions in the comments section or email me at TheArcadian [at] arcadiahousingblog.com .
Property and foreclosure numbers obtained from U.S. Census, ZipRealty, Trulia, Yahoo Real Estate and Foreclosure.com. Market listings and price data obtained from DataQuick News.