It’s now been exactly one year since the sub-prime mortgage crisis first hit Southern California in a big way. Now we know that county-wide our home prices have dipped 35% over last year. The median home price in L.A. County is now $385,000 for single family homes.
In general, prices in the San Gabriel Valley have fared better than the county median. Alhambra, for instance, dropped 15% to $471,000, Arcadia about 8% to around $800,000 in its two zip codes. Pasadena prices gyrate wildly depending upon the area: 91104 has dropped 10% to a $585,000, 91103 has fallen a precipitous 49% to $515,000, 91107 down 7% to $705,000 and 91105 34% down to about $1,000,000. 91106 is actually up 26% to $1,120,000. Another sad story is San Marino down 17% to a paltry median of $1,380,000. On the other hand, Monrovia is down 32% to a median of $405,000. So, for the western San Gabriel most cities are down, but not as low as the county median.
For the eastern San Gabriel Valley, again some areas are holding up well while others are plunging in value. Generally, cities with lower average family income have been hit first and hit harder. Thus, El Monte has dropped in value around 32% to a median of about $320,000. Azusa is down 27% to $315,000, Baldwin Park down 26% to $313,000. A very sad story is La Puente losing about 35% to about $290,000, well below the county median. Heartbreak City, though, is still Pomona plunging about 40% to a new low of around $260,000. Hacienda Heights remains another runner-up for worst city loss in one year: 38% down to $375,000. This means many foreclosures and so many homeowners who cannot refinance their homes even if they have lived in them for years.
On the up side, West Covina has dropped around 20% to a median of about $400,000. La Verne has dropped only 8% to $562,000, San Dimas is down 14% to $450,000. Even Covina has dropped only about 20% to about 410,000 median. Claremont is down 17% to $508,000. Glendora is split with 91740 down 23% to $385,000 and 91741 down a mere .6% to $595,000. Therefore, most areas of the eastern San Gabriel Valley are holding up quite well and are areas where buyers continue to flock.
The devastation in Pomona and La Puente is continued further east. Riverside Couty has lost 40% of its value in one year to a new median of $235,000. These are numbers unheard of in Southern California in years. Buyers realize the bargains, too, and are snapping them up as fast as they come on the market. About half of these accelerated sales come from foreclosures or short sales.
What’s the outlook for the future? Sad to say, but it looks as though the decline will continue albeit less quickly. Realizing the incredible values available, the smarter buyers are trickling back into the market or even flooding in the case of Riverside County, snapping of the new and nearly-new home bargains. Once the national elections are over and we know which party will be running the country, stability will most likely return. At that point, as night follows day, surely investors, now a trickle, will become a flood amidst these unprecedented bargain properties.