Last month the most expensive home sold, 312 S Grand Ave Pasadena. This luxury home was initially listed for $4,995,000 and sold in ten days for $4,850,000. Situated on a large lot of 28,719 square feet, this estate is located in a desirable location just around the corner from the Wrigley Mansion, which is the home of the Pasadena Tournament of Roses.
MLS remarks for 312 S Grand Ave Pasadena read: This beautiful Italian Period Revival house is a prime example of a ‘work in progress, over the last 118 years. It was built initially ‘on spec’ as a two-story frame dwelling in 1904. This property evolved through the years until 1930. After several additions and re-designs under the direction of the esteemed architectural firm Johnson, Kaufmann, and Coate. The house evolved into the Italian Revival design we see today. Additionally, the property to the South on Grand Avenue was razed to make way for the spectacular Italian garden and pool.
Wondering what to expect regarding real estate and interest rates? This excerpt is from a newsletter written by my colleague Floyd Walters owner of BWA Mortgage:
Inflation was expected to dip. It didn’t. What’s next?
Inflation has refused to start its downward trajectory despite the Fed’s tightening. The Fed will continue its march higher in short-term rates when they meet next month. And the mortgage market is trying to figure out if they need to follow. With that in mind, here is some perspective on what might come next. Enjoy!
I know you must be getting tired of me talking, what must seem like endlessly, about inflation, and I wanted to avoid it this week or at least bring you some good news on the inflation front, but I am, unfortunately, just the messenger and in the end inflation continues to be, by far, the #1 driver of higher mortgage rates.
The Producer Price Index came out this week (that’s the gauge of what manufacturers and producers pay for their goods), and it came in at 8.5% higher than a year ago. Then the Consumer Price Index (the CPI), which is what you and I pay for things, came in at 8.2% higher than a year ago.
The hope was that both of these figures would be on a downward trend, but that hasn’t happened so far despite the Fed’s rate increases, so the assumption is that the Feds will raise short-term rates another .75% next month when they meet.
Now here is where it gets interesting. Mortgage rates are trying to decide if we’ve “topped out”; that is, they are trying to figure out if we’ve seen the peak and, if so will inflation start its downward trend next month.
Think about it from a very personal level. Have you found yourself putting back the name-brand product at the market and picking up the less expensive “store brand”? Have you thought twice about booking a flight or a hotel room due to the higher prices? Has the dip in stock prices made you re-think buying something you want but don’t necessarily need?
All this and more is in play, and while I don’t have any definitive answers as to where we go next, I do know that we’ll be here to help you and anyone you know navigate the room.
Related Post: Pasadena Housing Market September 2022
