Say it ain’t so!! Sorry, but all those rumors that home values are finally rising again are just silly rumors. Values are slipping less than before, but, countrywide, values continue to decline by about 1/2% per month. As always, location is terrifically important. It matters greatly where your home is located or where you want to buy. Some areas are tanking while others are increasing slightly.
So, which is which? Do we want the good news or the bad news first? Let’s mix it up a bit. S0me local areas that continue to sink in value include Pomona down around 10% in all ZIPs to around a median of $200,000. El Monte took a pretty big hit dropping about 18% to a median of around $250,000 in all ZIPs. Remember the Station fire? Buyers apparently do as La Canada Flintridge values are down 27% to a median of $876,000. La Puente which has already lost huge value has sunk to a median of about $250,000 across all ZIPs. Trendy during the boom, both Highland Park, Eagle Rock are down substantially [18% and 32% respectively, to medians of $286,000 and $365,000].
So, is there any good news? Well, yes, some local areas are doing quite well, thank you very much. Glendora has slipped less than the county average to a median of $378,000 in 91740 down 2% while 91741 is down almost 7% to $470,000. LaVerne is down 4%, less than the county average to a median of $420,000, though San Dimas has sunk 25% to a median of $378,000. Covina dropped by about the county average across its ZIPs to about $330,000.
But, there are a few standouts. Altadena has posted a healthy 23% gain over last year to a median of $517,000. Alhambra in 91801 and Monrovia are up by about 1% to a median of $549,000 and $490,000 respectively. Alhambra’s other ZIP is down about 1% to $426,000. But, buyers are also flocking to Arcadia, up 8.5% to $807,000 and up 17% to $970000 in 91007.
Then, there’s Pasadena also a winner overall. This is where buyers seem to want to live and they are driving up the prices. 91103 is up 5% to $405000, 91104 and 91107 are up by whopping 23% and 26% to medians of $550,000 and $670,000, 91106 is up 1% to a median of about $1.1 mil–not bad! 91105 is the only Pasadena loser, down by a substantial 28% to $675,000.
What about trends? Any new trends across the county? It’s a bit early to say, but it looks as though more pricey areas, especially at the beach are starting to lose value. Palos Verdes is down 44% to a median $1.17 mil along with Rancho Palos Verde down 20% to $850,000. Manhattan Beach is down slightly to a median $1.139 mil. Malibu is down 36% to a median of $1.363 mil.
Why might this be happening? Rich folks may be different from you and me, but they can count pretty well. Being underwater by $200,000, $300,000 orn $400,000 just doesn’t make economic sense even if you can afford the payments. Better to just walk on by, and that’s what many wealthy home owners are now doing. My big prediction? More will do the same in 2010 as prices continue to decline. Buyers today, rich or moderate income, are all interested in only one thing: value for their money. Pasadena appears to offer that–at least for the time being–while Malibu does not.