Analysts are reporting a downturn in Southern California home sales, but the owner of a major Pasadena real estate firm says he isn’t losing any sleep over it.
Los Angeles County sales have tumbled by 8.5 percent below last year’s results, according to a report released Thursday by Irvine-based analytics company CoreLogic. The trend was most pronounced in Orange County, which saw a 10.9 percent drop in home sales. Ventura County sales dipped by only 1 percent.
“Home sales downshifted significantly this summer,” CoreLogic Analyst Andrew LePage said. “Sales during the June-through-August period … were the slowest for a summer in four years.”
Deasy/penner & partners President and Co-Managing director George Penner said he sees no cause for worry.
“There is no panic whatsoever,” he said. “We have a significant number of buyers who are looking for great properties, particularly in Pasadena. And quite frankly, Pasadena has always fared extremely well in many different markets.”
The market correction of 2008 and 2009 didn’t hit Pasadena nearly as hard as other areas in Southern California, according to Penner.
“We still are very optimistic about the real estate market. However, there’s been a slight uptick in interest rates,” he said.
“There’s still very, very little inventory to choose from,” Penner added. “Until inventory starts to pick up, it is going to remain not as robust as in the past.”
LePage similarly blames the downturn on a shortage of homes.
“Lack of affordable inventory is one of the main culprits of this summer’s slowdown,” he said. “Unlike the frenzied market of the mid-2000s, would-be homebuyers today don’t have access to the sort of risky subprime and other loans that fueled a lot of the home buying late in the last economic cycle.”
Meanwhile, the median home price in Southern California has crept upward, LePage said.
The report found the median home sale price in Los Angeles County grew 7 percent from $575,000 in August of last year to $615,000 in August of this year.
“The drop in affordability is the result of both price hikes and a significant rise in mortgage interest rates this year,” LePage said. “While the median sale price has risen 7.0 percent over the past year, the monthly mortgage payment on a median-priced home has jumped about 16 percent due to a nearly 0.7-percentage-point gain in mortgage rates over the same period.”
But real estate is a long-term investment, Penner said. “And if you look at the long-term appreciation of real estate, it’s one of the greatest assets ever created.”
“I think we’re in good shape and, as I said, we are very optimistic,” he said.
Nancy has been licensed to sell real estate since 1991. This includes sales experience in residential, land and investment properties. Due to her vast experience and expertise in the handling of complicated real estate transaction, she as the chosen as the Official Real Estate Sponsor of the Pasadena Bar Association for 5 years.
Nancy approaches each home sale as a new work that will be given a glorious Premiere! The staging, set design, and presentation all result in her listings being the “buzz” all over town. Nancy harnesses the power of the Internet to give her listings a competitive edge. She sees the Web as the most valuable way to respond to the constantly changing real estate climate. Nancy has the experience, knowledge and flexibility to harness the power of the Web in real estate transactions to get her sellers’ properties the best exposure, worldwide.
Like most people in this field, Nancy had another career before entering real estate. After graduating from Northwestern University School of Music, she attended the Juilliard School. Nancy went to Europe for the summer to continue her vocal training and stayed for 12 years! She sang professionally as a lyric soprano soloist in Austria, Switzerland, and Germany. Nancy is fluent in German and has a very good ear for languages! Her years of living abroad have given her a deep understanding of Buyers and Sellers from varying cultures and traditions. This experience is a valuable tool in understanding client needs and translates into a superb skill in negotiating on behalf of her clients. The experience of living in Europe as well as recent trips to visit family in Asia, she has a deep understanding of varying architectural and decorating styles.