After yesterday's announcement by Fed Chair Bernanke regarding interest rates to remain low to boost the economy, Stocks rose to a high not seen since 2007, however newscasters suggest it's like a "sugar rush" and what we need is a more nutritious diet for the economy. Consumer confidence always fluctuating between job numbers and average incomes announced, the bottom-line for Real Estate is "inventory", which is still low.
In our area of the San Gabriel Valley, based on the latest 3rd quarter report from TRENDVISION San Marino has kept strong a minimum of 585 $/sq ft and number of sold up 55%, which is consistent, but not the jump in sales 15 mos. ago. View Listings The inventory is still down, nearly 20% for 17 active, 8 back-up, pending-sale listings taking 30 - 60 days on market, where it takes 90 -120 days to close from list to closing time total. That's still an under-supply of inventory with close to a 1 month absorption rate. Properties here are going into contract fast and based on the financing and often with so many investors in line to buy, all cash. It's no wonder there's a lack of inventory. More and more investors see the sugar rush and buy properties instead of other markets. From $950, 000 to $5M offered in San Marino, in our neighboring town South Pasadena, View Listings, There are just as many listings active on the market as well as in escrow, however for the same period from March - September 2012, three to four times as many Homes sold (59 vs. 17) or close escrow. The affordability however was 1/2 of San Marino, where South Pasadena prices offered now are $410,000 - $1.7M.
Lastly Foreclosures. Yes, they are down Nationwide, California 3rd highest nationwide, San Gabriel Valley, big drop, where San Marino; 2 Trustee Sales (will likely be delayed/cancelled) and 4 NODs filed, or those that might be 3 months late with the bank. South Pasadena 16 properties ready for a likely delayed Trustee Sale (Auction) and 10 in pre-foreclosure. Only 1 REO (bank owned) in South Pasadena. Nothing in San Marino owned by the bank, except for investor owned (repossessed) 1-2 years ago at Garfield/Huntington (was a bank) and north/east corner of Huntington/Waverly; where that is now new developed home.