UCLA Report Predicts Continued Weakness in Real Estate Market, Local Realtors Say Otherwise

By Donna Balancia

Demand for housing in California is weak and new housing construction is expected to slow throughout the state, including in Pasadena, in 2019 and 2020, according to a new economic study by UCLA. But local Realtors say the outlook remains sunny for existing home sales in the Pasadena area.

In his latest quarterly report released on Wednesday, UCLA Anderson School of Management Forecast director Jerry Nickelsburg led a group of economists who downgraded their forecast of the state’s real estate market.

The Anderson Forecast concluded new housing starts will slow this year and the national economy will shrink “to a near-recession pace of 1.1 percent in 2020” before increasing again in mid-2021.

But the number of housing starts, which represents new construction, hardly depicts the entire market, local real estate sources said.

“First, the forecasting is basically about new construction versus the resale market,” said George Penner, chief executive officer of Deasy Penner Podley. “New construction is a very small percentage of the market in Pasadena. The report did say home sales were down a touch in January, and a lot of that had to do with heavy rain and the federal shutdown.”

“That put a lot of people on the sidelines,” Penner said. “Rain keeps sellers from putting their homes on the market.”

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The Buyer Wanted The House And The Car. The Seller Countered With The Cat.

By Neal J. Leitereg

In today’s market, more than 80% of sellers make concessions to close the deal, according to Zillow. The most common concessions include appliances, repairs and price reductions, but can occasionally involve a unique item or circumstance.

Perhaps the most famous concession was attached to the 2016 sale of the Playboy Mansion. The 29-room Holmby Hills home changed hands with the stipulation that Hugh Hefner be allowed to live out his days there. He died at the home in September 2017, at age 91.

Dress for success

Boyd Smith, deasy penner podley: The most interesting concession I’ve ever experienced was in a deal in South Pasadena. My client, a dressmaker, was the buyer. The seller’s wife was a blonde, and so my client made an offer for the house and in it included an offer to design a dress for the seller’s favorite blonde. It was very playful.

The seller came back and countered with an offer that included “a couture dress for each of my three blondes.” Eventually, both parties agreed. But we all wanted to know who were the three blondes. Eventually, we found it was for his partner — a longtime girlfriend — and his two daughters. It’s funny, real estate is a little bit like dating. How do I wow the other party? How do you create an experience?

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Deasy Penner Podley Welcomes Partner Zach Stevens

deasypennerpodley is excited to announce Zach Stevens as a new agent to our Pasadena family.

Zach Stevens comes from a diverse and unique sales background. After receiving his degree in Business Administration with a minor in Communications he worked for over a decade at a global publishing firm. This experience provided him with a depth of knowledge in B-to-B communication, negotiating contracts, and building long-term relationships. In every aspect, Zach learned to go above and beyond his clients’ needs and expectations.

What mostly attracted Zach to becoming a full-time Realtor® was the ability to work with a local base of clients, building relationships on a foundation of trust, knowledge and care.

He carries the national designation of Certified Real Estate Analyst (CREA). This certification allows him to analyze multi-family income properties on the behalf of clients looking to liquidate and pass on gains via a 1031 exchange – or those simply interested in acquiring sensible cash flow properties.

Zach proudly calls Deasy Penner Podley home as it perfectly complements his vision of serving clients at the local level, having access to world-class resources and exceeding expectations.

When not helping buyers and sellers with their real estate needs, Zach enjoys playing the drums, road biking, motorcycling, and enjoying the outdoors with his wife Jayne.

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March 2019 Newsletter

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Here’s what $700K buys around LA

By Elijah Chiland

Here’s a Spanish-style home sitting on a grassy 5,993-square-foot lot in easygoing Altadena. The house has three bedrooms and three bathrooms, spread across 1,391 square feet of floor space. Inside are wood floors, French doors, and a wood-burning fireplace in the living room. Behind the house is a large back deck and an attached garage that’s been converted into a bonus room. Asking price is $699,900.

To read the full article visit their website here.

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