Author: TheArcadian
June 21, 2008
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
- Homes sold: 43
- Price change YOY: $746,500 to $588,000 (-21.23%)
SOUTH PASADENA
- Homes sold: 9
- Price change YOY: $860,000 to $700,000 (-18.6%)
PASADENA
- Holes sold: 107
- Price change YOY: $630,000 to $550,000 (-12.7%)
TEMPLE CITY
- Homes sold: 28
- Price change YOY: $598,000 to $551,000 (-7.86%)
MONROVIA
- Homes sold: 18
- Price change YOY: $575,000 to $490,000 (-14.78%)
SIERRA MADRE
- Homes sold: 9
- Price change YOY: $880,500 to $749,000 (-14.93%)
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:
Frankly, I’m still amazed that people are still purchasing homes at that rate. Also, the median prices that are used for YOY comparisons can be misleading: is Temple City really only 37k less expensive than Arcadia? It would be nice to see all the sales and see the actual sales prices laid out. Regardless, it does point to the downward trend in prices.
I know not all sales are FC or short sales. One of the midlevel managers in my office (government)just completed a purchase of a home in Valencia; he sold his smaller home in the city and bought a larger one nearby. I didn’t ask for details, but he seemed happy enough. Although he is keenly aware prices are dropping, he said just wanted more room for his family.
With increasing inventory, I expect home prices to keep dropping. However, I’m just curious where are you getting the numbers for Arcadia?
You can check dqnews.com for housing numbers of every city in California. They are reliable enough to be used by all the major news outlets. Feel free to shoot any other questions our way!
Like the song says….You Aint Seen Nothin’ Yet!
Here’s what is scary [if you are a seller]….I have never in my 30+ years of following RE seen so many home for sale by REALTORS!
So here they are telling people to buy and they are selling in droves. It’s not illegal but it is questionable as to the “advice” they give their prospective buyers.
I’ve been telling coworkers to wait for a 20-25% decline but I think it’s going to be more like 40-50% as interest rates are bound to climb rapidly in the next 2-3 years. Back to the 7% range for 30yr fixed.
Australia, Mexico and the UK have all raised their rates to stop inflation. We are about 1 year behind and will have to play catch up if we expect head off inflation.
High inflation, rising unemplyment and tough lending standards all spell trouble for sellers.
My biggest fear….with so much to choose from I am afraid I won’t be able to make a decision on where to buy!!
This is very apparent when you filter through the San Gabriel Valley home listings. Many Realtors bought during the height of the bubble and now unable to unload them. Personally, I know if a handful of self-proclaimed RE professionals who have been wiped clean of their savings from this housing crisis. There isn’t much I can say to them…
Renters are definitely winners in this housing climate. I went to see a home that I was interested in just less than 60 days ago in West Covina. I could not believe how badly the property deteriorated. Here is a link to the property-
http://www.redfin.com/CA/Covina/19431-Cameron-Ave-91724/unit-1/hme/12280062
The nice lawn is no more. Weeds are growing at almost knee level, and the pool is filled with green gooey stuff…the place now looks like a jungle, not at all like the redfin photos. The seller must be having money problems to let this nice property rot like this. I thought these types of “abandoned homes” only existed in exurbs like Temecula or Riverside. I would not be suprised in a few more months we will start to see abandoned McMansions in Arcadia too.
How do you know that all the properties in Pasadena that sold were of the tiny and dark variety?
Your number for 2007 sales are different than the Dataquick numbers listed in the LAT. Per Dataquick, the 2008 May sales for the two Arcadia zip codes were $679K & $770K and South Pas was $750K. Still down, but not as bad as your figures indicate. Sorry to put a downer on your celebration.
You are skewing the figures. You are quoting LA Times’ numbers from the sale of just single family homes. My DataQuick figures take into account for all properties sold (i.e. sfr, condos, puds ect).
http://dqnews.com/Charts/Monthly-Charts/CA-City-Charts/ZIPCAR.aspx
Seeing as how condos account for over 25% of the homes sold last month, I always go with the all-inclusive data rather than breaking it down between SRF and condos.