May 2012 Market Update for Glendale, Pasadena and Burbank
| May 17, 2012 | Posted by admin under Market Update |
Lease Prices – Rising or Falling? – Glendale, Pasadena, Burbank, La Crescenta, Tujunga Area
| March 26, 2012 | Posted by admin under Economy, Income Property, Lease |
Over the past few months I have heard a lot of talk regarding the prices of residential leases. Some say that since the economy is still struggling and renters cannot afford to pay as much, residential lease prices have gone down. While others argue that since many people have lost their home due to foreclosure or were forced to sell, which has increased the number of renters in the market (increased the demand), hence forcing lease prices to rise.
Looking at the numbers the price per square foot of aresidential lease has only dropped 4% since 2006, while the price to purchase
an income property has dropped 41% since 2006.
Though the price to purchase residential income property has gone down significantly, lease prices, at least in our area (Glendale,
Pasadena, Burbank, La Crescenta, Tujunga), have endured the economic down turn.
Given this huge decrease in the price to purchase income property compared to the small change in lease prices, would you say the smart money is buying income property right now?
And by the way, demand to lease is very strong. The number of properties leased in 2006 in our area was 421, the number in 2011 – 680.
Why Right Now Is A Great Time To Sell
| January 18, 2012 | Posted by admin under Economy, Selling Your Home |
If you ask most people what kind of market we are in right now, most will say that we are in a “Buyer’s Market”. However, after taking a step back and really looking at the big picture, I would say that it is a “Seller’s Market”. Below are a few significant facts to consider:
1) Low Inventory – In December 2011, in Glendale, Pasadena and Burbank, there were 821 properties for sale (information taken from i-tech MLS, numbers include single family homes, condos, townhomes, and income property. See graph below). In December 2010 there were 1,533 properties for sale and in November of 2010 there were about 1,800 properties for sale. When the inventory is low this means that there is less competition for sellers and buyers have less to choose from. This means that when a property comes on the market that is priced at market value, there will be a high level of interest from buyers. When there is more than one buyer interested in a property, the seller gains a high amount of leverage and can possibly sell the property for more than market value. Some might be thinking that this is a moot point because buyer activity is low right now due to the poor economy… the next couple points will show that this is not true.
2) Low Interest Rates – In case you have not heard by now, interest rates are at or near historic lows. When most people hear that interest rates are low, then think that this is good for buyers, however, it is good for both buyers and sellers. When interest rates are low, more buyers can qualify for a loan and buyers can qualify for a larger loan. When buyers can afford a larger loan, this puts an upward pressure on prices. This also brings more buyers into the market which creates competition for the properties that are listed for sale.
3) Level Number of Sales - The number of sales in 2011 rose by about 4% compared to 2010 (information taken from i-tech MLS, numbers include single family homes, condos, townhomes, and income property. See graph below). Even though we have a significantly lower inventory compared to a year ago, we still have a consistent level of sales. This shows that buyers are not being deterred from the market and that people are still buying.
If you are thinking about selling a property, now is a great time. There is a good chance that later in the year there will be a much higher level of properties on the market which will greatly reduce the advantage that sellers have right now.
Information taken from i-tech MLS
November 2011 Real Estate Market Update – Glendale, Pasadena and Burbank
| November 13, 2011 | Posted by admin under Market Update |
Deal Of the Week – La Crescenta $529,000, 3 Br, 1,404 SF, 10,000 SF Lot
| October 26, 2011 | Posted by admin under Deal of the Week |
I wanted to write this quick post about a great deal in La Crescenta. This property is in the north east part of La Crescenta, on a very quite street. The prooperty is in good condition and has a huge, mostly flat yard.
This proeprty is a great deal at $529,000. 3 bedrooms, 2 bathrooms, 1,404 sqaure feet and a large lot at over 10,000 squre feet.
Click Here for more details and pictures.
7 Best Income Propery Deals On The Market Right Now
| October 21, 2011 | Posted by admin under Deal of the Week |
I was doing some research for a client and I wanted to post what I found. Below are the 7 best deals for 4-10 unit income properties in the north Los Angeles area between Granada Hills and Monrovia, listed under $1,000,000.
The basis for my analysis was a combination of location and a ratio called the gross multiplier. The gross multiplier is a simple ratio that is used to roughly compare income properties. The ratio is the list price divided by the yearly gross income. It can also be thought of the number of years it will take to generate total income equal to the sale price.
For a point of reference, all properties that fell into my search criteria had an average gross multiplier of 13.7. These 7 properties have an average gross multiplier of 10.7.
Click here to see the property details and pictures.
1106 N Raymond Ave, Pasadena – 8 units – yearly income $93,720 – list price $959,000 – gross multiplier 10.2
5915 Hazeltine Ave, Sherman Oaks – 7 units – yearly income $75,300 – list price $799,000 – gross multiplier 10.6
4425 Ellenwood Dr, Eagle Rock – 4 units – yearly income $74,400 – list price $799,000 – gross multiplier 10.7
17951 Roscoe Blvd, Nrothridge – 6 units – yearly income $72,048 – list price $749,900 – gross multiplier 10.4
17956 Schoenborn St, Northridge – 6 units – yearly income $59,605 – list price $669,000 – gross multiplier 11.2
614 N Mentor Ave, Pasadena – 5 units – yearly income $59,100 – list price $649,000 – gross multiplier 11.0
243 E Lime Ave, Monrovia – 4 units – yearly income $57,600 – list price $599,000 – gross multiplier 10.4
September 2011 Real Estate Market Update – Glendale, Pasadena, Burbank
| October 5, 2011 | Posted by admin under Market Update |
The market for Glendale Pasadena and Burbank has experienced a significant decrease of about 30% in the number of properties that are on the market. This might be attributed to sellers waiting for prices to increase before selling. However, with low prices and low interest rates, it is still a great time to buy despite the low inventory.
Open House Sunday 8/14 1-4PM
| August 14, 2011 | Posted by admin under Open Houses |
Large Lot and Award Winning Schools
- 3 Bedrooms
- 2 Bathrooms
- 1,564 SF
- 13,940 Lot
- Award Winning La Crescenta Schools
- Dining Room
- Fireplace
- Laundry Room
- RV Parking
- Living Room and Family Room
- Central A/C
One Owner Home! Immaculate 3 BR/2BA, family/ dining room, large living room with fireplace & sliding glass doors out to lovely covered patio. Kitchen features built-in appliances and breakfast bar. Large separate laundry room. Forced air heat and central air to keep you cool these hot days. Freshly painted and new carpeting. Located on over 1/4 acre lot down a private drive with many fruit trees, a lighted badminton court (23.5 ft. x 43.5 ft) + ample RV parking and parking for several more cars. Glendale award winning schools.
Call for more details or to set up a private showing, Alex - 818-919-0159
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