When you purchase your new home you’re not just acquiring a yard or a pool, you’re acquiring an entire community.  Whether it’s  San Marino, Denver, or Portland, you want to find that neighborhood that will meet your needs.  So how do you find it?  Well here are a few tips to get you started.  First, make a list of everything you enjoy doing. Shopping, playing in the park, going to the movies, attending church, or dinning.  Research the local school districts.  See what enrichment programs and universities are close by.  Check for crime in the area.  Call the local police departments for crime statistics.  Make sure to ask what types of crimes have occurred and if there is either a decrease or increase in crime.  Find out how the neighborhood is doing economically.  Drive around and see if there is a large number of closed businesses or a lot of apartments for rent.  Talk to your real estate agent about the resale value of homes in the neighborhood.  And finally walk the neighborhood.  See how the neighbors keep up their property, talk to the neighbors, and see how busy the streets are at different times of the day.  With a little leg work and research you can make an educated decision on what neighborhood you want to purchase your home in.

Great news for home buyers, interest rates dip below 5%! As of this week, 30 year fixed-rates are down to 4.97% while 15-year home loans are down to 4.46% according to Freddie Mac and the Mortgage Bankers Assn. Growing confidence in the economy, low home prices, and the government pushing to keep rates low are fueling the trend in lower rates. With the first-time home buyer tax credit of $8,000 and low interest rates, purchasing a home may not be so out of reach for many people dreaming of their new home. And don’t forget, those of you that have not owned property for at least three years could still qualify for the tax credit. So whether you looking to purchase a home in Pasadena or in another area of beautiful Southern California take advantage of these great rates before they disappear.

Pending home sales have jumped to their highest level since July 2007. We are 12% above the index as of July, 2007. In the month of July for 2009 sales have risen 3.2%. The increase is due to the moderate prices of homes and low mortgage rates. On average, across the nation, including homes in Pasadena, home prices have risen 2.7%, good news for sellers. The average 30 year fixed is 5.2% and a 15 year is at 4.6%, good news for buyers. Another key to the bright outlook is that, according to market experts, the recession is nearing an end. Adding to the bright outlook, consumer spending is up 2%, along with manufacturing while layoffs are declining.

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Check out our new listing and swing by our open house this Sunday April 19th from 2 – 5 pm.

The kitchen. The center of our lives. The one place that whether cooking, relaxing, or spending time with family and friends, we spend a lot of time in and around it. So it’s no wonder that the kitchen is the first thing we update or change in our homes. This usually takes a bit of time and money, but there are many great ways to save on both of those and have a wonderful looking kitchen with good quality materials. Hard wood floors are desirable, last long and are fairly easy to clean. Not moving the sink and windows will save you a great deal of headache and money. Tips like these improve the kitchen and don’t hurt your pockets in this depreciated economy (Make over your house without going broke, CNNMoney). An updated kitchen will also typically raise interest and the value of your home if you are looking to sell. You can check out the current homes on the market in Pasadena and compare your home, maybe get some great ideas in the process.

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Money101 Lesson 8: Buying a home (AP)
Will this renovation project pay off? (AP)

In the last 3 months of 2008 the prices dropped 18.2% when compared to the same time in 2007.  The top 20 cities showed a drop of an average of 20%, Los Angeles shows a 26.4% drop.  That means good news for potential buyers that are eligible for loans and/or the government credit. The main cause of the price drop is due to the increasing foreclosures in the nation. Lenders are beginning to acquire a “take what you can get” attitude , which is not helping the situation. Despite the extreme drop in prices, home sales have been reported as higher than last year, especially in areas such as Pasadena, home sales have picked up, showing good signs of activity (Home Price Drop is Record, CNN News).

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Snag a great deal on a short sale (AP)
Most affordable city in the nation (AP)

In recent events it has been reported that the overall application for home purchases have gone up by 7.1%.  As the applications are going up and people are considering to buy, the mortgage rates have been dropping. This is great news for potential buyers that are looking for homes. This sudden increase is mostly likely due to Obama’s Home Credit bill, that went from $7,500 to $8,000 with no payback. The constant boost from the government and the mortgage rates decreasing is a great sign.  Although, the sales seem on the rise this does not mean we are out of the clear, prices continue to drop and there are still an astonishing amount of foreclosures throughout the country (Real Estate Outlook: Where Housing is Headed, Yahoonews). These foreclosure are mainly within 12 states, yes including California. The majority of these properties seem to be in Las Vegas and Los Angeles, and as we know, the city of Pasadena and surround areas have not seen the rampant activity that other outlying cities have. But if you’re in the mood to search through some forclosures in Pasadena, do it quick, because the good ones go fast.

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Combating the Financial Crisis: The Foreclosure Challenge (AP)
How much house can I afford?  (AP)

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With the influx of foreclosures, the City of Pasadena is offering help to home owners in need. Even though, the number of foreclosures in Pasadena is not as high as other cities, more than 500 homes, the City of Pasadena is taking action in preventing the increase and the actuality of foreclosures.  One way is the free workshop offered on Saturday March 21th at 9 a.m. to 1 p.m. at Lake Avenue Church 393 N. Lake Ave. This workshop is for home owners in foreclosure, in risk of foreclosure or who have received notice of default.  All who attend must provide the following: copies of loan documents for all existing loans,  current mortgage statement, bank statements and pay stubs for the last two months, tax returns for the last two years and rental contracts or roommate agreements if applicable.  People will receive counseling from representatives from the likes of IndyMac, Bank of America and Chase Bank. (FREE WORKSHOP TO HELP PREVENT FORECLOSURES, Pasadena News Release). Pasadena homes still mainly consist of “normal” sales and the buyers are increasing due to the Credit gaven by the Government.

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Good Time For Home Repair (AP)
Foreclosures for Banks p 30% (AP)

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Last year we received a gift from the government, a $7,500 credit to first time home buyers that had to be repaid within 15 years (essentially an interest free loan). This credit gave buyers that little boost they needed to buy their new homes (First Time Home-Buyers Due Major Tax Break, NewsOK). This year the government gave us another gift a credit for $8,000 (or 10% of the purchase price, whichever is smaller) that does not have to be paid back. The credit applies to first-time home buyers and buyers that have not purchased a home for over 3 years. The market is expected to improve with this credit and ease the buyers.

The effects of this incentive may not have been felt yet, but since the beginning of the year, here in the Pasadena area, we have felt a surge of energy. Partly due to the excellent rates that have recently been available. This credit expires on November 30, 2009 so don’t postpone the searching process for your lovely new home in Pasadena.

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I came across this wonderful article in the Chicago Tribune (Finding an area with appreciation potential) about buyers purchasing homes and properties in this current market. I think it speaks to our general areas, Pasadena, San Marino, La Canada. The idea behind purchasing now and waiting for at least five years before selling, is to build some equity through appreciation, but the question is, which communities typically bring in the higher rates of appreciation. I found these following recommendations to be helpful, and in the long run keeping these points in mind should land you in just the right place.

1. Seek out a community grounded by a strong job base
2. Look for a “Walkable” community
3. Search for a subdivision with top-quality construction
4. Find a neighborhood with sales momentum

These few tips aren’t everything you need to do, but it sure is a good start. The important thing to remember is to ask questions, a lot of questions. Ask the neighbors, the police, there’s only so much a realtor can (legally) tell you, the rest you have to dig to find. So what do you think, do our communities stand up to the test of appreciating neighborhoods?

Find community info for Pasadena, San Marino, La Canada, and more.