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Crewleader

(17,005 posts)
Thu Sep 25, 2014, 09:26 PM Sep 2014

Dr. Housing Bubble 09/25/2014

Real Homes of Genius: Pasadena small home market. Quick sales and people targeting foreign buyers.

While the weather is hot in Southern California, unseasonably so, the housing market has gone lukewarm. People forget that in California, housing needs to be booming or busting in epic fashion. Yet inflection points are harder to detect. People will say “well look at current prices!” Sure, let us look at them. Are you going to buy that crap shack for $700,000? Most of the justification usually revolves around other suckers paying current prices and 2013 as some kind of barometer for years to come but there is no evidence that the trend will continue. For those that enjoy looking at quality homes and I mean this in terms of construction, many have no idea what awaits them when they purchase their glorious little shipping container. And without a doubt, those buying these tiny “starter” homes are simply rubbing their hands just counting the days until they can unload with equity check in hand and start on their property ladder adventure. Some are so narrowly focused that they are missing the macro picture in the state and that is, we have largely become a state of renters. Not because people don’t want to buy, but because most families simply cannot afford to buy. Most households in L.A. County rent. What I am noticing though is quicker turnaround sales hitting the market. And these aren’t necessarily your flipper variety. These are people turning around rather quick. Take a look at these two examples in Pasadena.

Pasadena turnaround

Typically when you see a home hit the market in a short amount of time, meaning less than 12 months, you are looking at some sort of flip. These homes don’t have any indication of upgrades made since the last sale. I also found the first example to be funny since it is subtly targeting Asian buyers. Take a look at this home:



2756 Morningside St, Pasadena, CA 91107

2 beds, 1 bath, 976 square feet


http://www.doctorhousingbubble.com/real-homes-of-genius-pasadena-smaller-homes-quick-sales/
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