Alhambra Real Estate
Alhambra Homes For Sale - Investing in Real Estates of Alhambra, CA

A Look At How We Match Up With the Surrounding Cities
By Lee Lieberg

With the first half of 2008 now behind us, we can see how the real estate market in Alhambra compares with the surrounding cities.

In evaluating Alhambra, San Gabriel, Monterey Park, South Pasadena and San Marino it is clear that everyone is experiencing a steep decline in the number of homes sold.

In comparing the first six months of 2008 with the same period in 2007 our neighboring cities experienced decreases of 20% to 45% in the number of homes sold. The number of sales in Alhambra was down 33%.

Home values told a different story. When it came to home values the signals were mixed. The higher end of the market, our neighbors to the north, San Marino and South Pasadena both surprisingly showed increases in values. The rest of us were down, with Alhambra home values being down 12% for the six month period.

The strength in the higher end of the market appears to be slightly misleading as the gains in averages were contradicted with weaker dollar per square foot numbers for South Pasadena and San Marino.

In a market that is grounded in supply and demand, the supply is an easier number to measure.

The change in the supply of homes currently offered for sale varied substantially. The number of current listings in Alhambra and San Gabriel decreased by 24%, while the number of homes being offered in San Marino and South Pasadena rose by a combined 72%. This shrinking supply is favorable for the Alhambra and San Gabriel markets, but the increase in supply might prove troublesome for South Pasadena and San Marino.

This downturn started at the entry level with the crisis in the sub-prime loans and has rippled up. One end of the market is more affected by the increase in gas and food prices, but the other end is more likely to feel the pain of stock market declines. The 2nd half of 2008 might show us how strong the impact will be at the top end of the market.

As for the first half of 2008, it’s nice to have it behind us.

*Data was obtained from California MLS Alliance and deemed to be reliable. Lee Lieberg can be contacted at lee.lieberg@dilbeck.com.