2009 End-of-Year Roundup: L.A. County Home Values

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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.

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L.A.County Home Prices: April 2009

:en:Category:Images of Pasadena, California
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Well, the beat goes on and on…Home prices are still falling, marginally, and the spring/summer sale mood has definitely kicked on. Some, highly desireable, areas, such as Pasadena, are experiencing fast sales and multiple offers, but mainly in the starter homes which in the Rose City means $300,000-$400,000.

For the county as a whole, median values are now $295,000 which, as mentioned frequently here, lacks much meaning for those living in the so-called “desirable” areas since that depressed figure is largely generated from massive losses in a localities-Palmdale [down in one ZIP 57% to an incredible $53,000 median home price], Watts [down 50% in one year to median $130,000], Littlerock [down 52% to $100,000 median] or Compton [down 60% to about $140,000]. In other words, the main pain is being felt either in outlying areas of the county or in traditionally lower-priced sections. These massive drops in value are forcing the median of the whole county down.

So, where are the “desirable” areas which have suffered less? Well, La Verne, for one, is down only 4.6% since last April with a median of a healthy $475,000. Claremont is down only 2% with a median of $545,000. Arcadia is down 7.4% to a median $766,000 in 91006 and UP 11% to a median $929,000 in 91007! Temple City is UP 3.9% to a median of $530,000. Other cities in L.A. County, too, are either showing positive gains over last year or only modest losses–Alhambra is up a tick to median $520,000; Sherman Oaks is up 3.2% to a median of $813,000; Van Nuys is up 4.4% to a median of $473,000 in ZIP 91411, though, admittedly its other ZIPs are all showing losses between 25% to 30%.

Other “desirable” area are quite predictable. Most beach cities are up: Malibu, up 5% to a median $2,000,000; Manhattan Beach up 6% to $1,500,000 median; Redondo, up about 10.5% to a median $990,000 in ZIP 90277 and $708,000 in Zip 90278; Marina Del Rey, up 21% to $955,000, Palos Verdes Peninsula is up 16% over last year to $1,825,000. Only Hermosa Beach has declined a smidge [-5%] to a paltry $1,785,000, based on very few sales. Must be tough!

See the trend? Southern California property is still hot, just not all of it. People are running like mad to buy beach city properties which haven’t been this low-priced in awhile. In fact, there’s a bit of a buying fever in these areas which is also reflected in other affluent cities, such as San Marino [down only 3% to $1.4 million median], parts of Pasadena [91106 up over 60% to a median $800,000, based on very few sales] and certainly Glendale which over its seven ZIPs ranges from up 10% [91202 median $692,000] to down 33% [91204 median $399,000 based on too few sales] to down 4.5% [91205,91206 with medians $528,000 and $578,000] . All of these cities are making respectable showings with hefty median prices, especially when compared to the rest of the country. We are still prohibitively expensive for transferees from other states.

Other parts of the county are down, just moderately…Glendora is down in its two ZIPs about 20% to a median of about $400,000, and sales are numerous and brisk. San Dimas is a great bargain–down 35% to a median $350,000, again with brisk sales. West Covina is down in its three ZIPs about 20% to a median of around $350,000 also with brisk sales. Covina is down a tick below 20% to a median of about $360,000 across its three ZIPs, again with eager buyers recognizing a bargain when they see one.

The worst-hit areas in the eastern part of the county are traditionally working-class where unemployment has hit the hardest–Azusa, down 25% to a median of $250,000. Baldwin Park down 29% to $255,000. El Monte, down about 25% to about $265,000, Duarte down 41% to $260,000. As we have noted over the past year, Pomona leads the way downward with huge drops across its three ZIPs [91768 down 28%, 91767 down 32%, 91766 down 42%] giving medians of $175,000.$205,000 and $159,000–some of the lowest values in the entire county…

The pain is not over, though we can see tiny points of light here and there. Homeowners who are not “upside down” or owing more than the value of their home are well advised to sit tight. Living in a hard-hit area, though, many homeowners have seen their down payments and equity vanish as if by magic. For these homeowners, loan modification or short sale are probably the best bets. Homes that the first to decline and which decline the most are usually the last to recover…unfortunate, but true….

Thanks to The L.A. Times and MDA Dataquick for the data.

Dealing With the Devil: Countrywide aka B of A

These file photos show a Bank of America branc...
Image by AFP/Getty Images via Daylife

Ok, I admit it–THIS IS A RANT. This is more than a pet peeve. This is a full on rant.
For the past 8 months–count’em 8–I’ve been trying to do a short sale with a Countrywide loan. Actually, the property has two Countrywide loans, a first and a second.
The house is cute. It’s in Pasadena, in a good location and has attracted lots of attention. I’ve gotten lots of offers. In fact, the first offer was sent in with “the package” in October. The package means all the seller’s financial information, hardship letter, bank statements, tax returns–the lot. And, of course, the offer goes in with that.

Fast forward two months with no response from the bank. The buyers bail…No problem, I’ve got a backup offer. That buyer hangs on for two months and then decides not to buy a house after all. No problem, I’ve got a backup. Two more months flash by and the bank accepts their offer!! Oh happy day–you think? The very day before, the buyers–you guessed it–had bailed because, having to leave their apartment, they really had had to buy a house.

Now, if I can get the same amount, I shouldn’t have any problem, right? So, we wait a month, rejecting lowball offers until we get one in the right ballpark, send it in and then…wait and wait and wait.

Two weeks go by until Countrywide finally declares they’ve got the offer in the system. Then, they start talking about doing a BPO or mini-appraisal. We’ve already had two of those two months ago and this offer is about the same with prices still falling, so really why? But, OK…The BPO will come in 5 days, no 13 days, no 15 days…They will assign a negotiator. The BPO is ordered; no it’s not ordered. Only the negotiator can order it. No, the BPO is in the system…Do I have any hair left to pull out?
This house originally sold for $500,000. Countrywide put up $430,000. Our first offer was in the $360,000 area last fall and now is at least $50,000 less. You do the math. In the meantime, the seller hasn’t paid the mortgage since October. Add in another $20,000 in lost revenue. Is it any wonder that the banks are going bankrupt?
Countrywide now aka B of A has not changed one iota. It has the worst reputation for dilly dallying in the short sale process. That’s great for the sellers who get 6, 8, 10 months free rent. One sympathetic agent told me he had a Countrywide short sale hanging on for 16 months!

The moral of this story is–if you have a Countrywide loan and want to do a short sale, get ready to live rent-free for a long, long time…

L.A. County Home Prices: February 2009

South Pasadena City Hall
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The news is still grim and grimmer for February 2009. L.A. County median home value has now sunk to an almost unbelievable $295,000. This represents a 37% drop over the previous year, but that’s only part of the story as prices had already sunk more than 10% by that date. Remember prices started to slide in September, October 2007.

Part of the reason for the precipitous drop in home values, as mentioned here repeatedly, is the wipe-out occurring in outlying areas, such as Lancaster [over 50% decline] and Littlerock [64% decline] which were offering many new homes to commuters. These homes are now almost worthless and dropping all the time due to adjustable mortgages, sub-prime loans and repossessions, in short the panoply of ills we have all learned about in the last year as our economy has tanked. Other areas of massive decline in L.A. County include Watts [61% down], Firestone Park [-52%], Eagle Rock [-51%] and Boyle Heights [-55%].

In the San Gabriel Valley, the eastern part of the L.A. County, the situation is not so bad, though, as always, working-class areas are hardest hit. In fact, only Pomona in the San Gabriel Valley comes close to the dire drops of northern L.A. County. Across its three ZIPs, Pomona has lost 40% to a median of $200,000 in 91766, 37% to a median of $195,000 in 91767 and in 91767 anothrer 37% drop to a median of $185,000.  Marching these declines are only Azusa at 47% drop to $235,000, followed by South El Monte at negative 38%.

The biggest surprise has to be  La Verne down 38% to a median of $369,000. If this trend holds, in fact, this would make LaVerne the biggest bargain east of the 605 because it has housing stock that is for the most part very well maintained along with a very good school system and plenty of infrastructure support.

For the rest of the east, Baldwin Park is down 31% to a median of $255,000,  Covina is down about 20% to a median of about $350,000 except in the South Hills where it’s down barely 2% to a median of $478,000 with just a couple of sales. Sales are weak  in Glendora 91740 where the median has dropped 25% to  $350,000; even more anemic sales in 91741 show a rise of 36% to a median of $660,000. Neither figure is reliable as sales are too scanty to know what is going on there.

Rounding out the east, Claremont has essentially held its own for the year with a median of  $570,000. Diamond Bar has dropped 11% to a median of $451,000. San Dimas has gained 10% over last year with a median of $543,000. Over its three ZIPs, West Covina has lost over 25% of its home values falling to a median of about $410,000.

On the west side of the 605 Sierra Madre has gained 2% to a median of $745,000. San Marino has gained 36%, but that is based on only 4 sales and so means little. South Pasadena has remained stable with a median of $725,000, again based on only a couple of sales. Arcadia has taken quite a dip-42% in 91006 to $485,000 and 14% negative in 91007 to $750,000. Some of these medians may seem high,but when you’ve paid more than a million dollars for your property, it’s no picnic watching it plumment to even $750,000.

Duarte is down 27% to $295,000 while Monrovia is down 30% to a median $400,000–both based on quite a few sales. Altadena is down 19% to a median of $443,000. Our major city, Pasadena, as always shows mixed results. In prestigious 91106 the median value is still over $1,000,000, a slight increase, again based on a negligible number of sales. 91107 shows a drop of 10% to $630,000, 91105 a 16% drop to $773,000, 91104 13% negative to $557,000 and 91103 a 34% drop to $310,000 median.

The situation does not appear to be improving significantly, but I can say that many of the stats were based on so few sales as to make them meaningless.  Few sales is also a negative in itself, of course, but  the coming of Spring to the Southland also opens the homehunting season for buyers who this year have an amazing array of help available to them in tax credits, higher FHA loan limits, and various city and county grants.

On the positive side,  perhaps Obama’s Plan will help some of these underwater homeowners. I am always available for discussion at 626-641-0346 or email at drdbroker@yahoo.com. The new administration has presented some plans to help those suffering from the precipitous drop in home values.

Figures are courtesy of MDA DataQuick in LaJolla, supplied by L.A. Times.

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First-Time Home Buyers: Help from City of Pasadena

beautiful-building-of-city-hall-in-pasadena-ca-s

In previous posts, I’ve discussed federal help for first-time home buyers. First-time buyer means anyone who has not purchased a home in the past 3 years.

All financial aid programs have financial limits, but  a variety of  LOCAL programs are available for low-income first-time home buyers.These programs are offered in many Los Angeles, San Bernardino and Orange County cities. These counties also all have programs to aid first-time home buyers.

In this area, the City of Pasadena has a program for buyers under certain income limits. And, buyers who meet these limits can receive up to $200,000 on a home price of up  to $425,000! That’s terrific! Here’s the chart:

Family size 1

$50,300

Family size 2

$57,400

Family size 3

$64,600

Family size 4

$71,800

Family size 5

$77,500

Family size 6

$83,300

At the moment, the City of Pasadena’s program, like most of the other ones offered, is OUT OF MONEY. Beginning in the new fiscal year, July 1, City of Pasadena program and several others in our area will be funded again.

Right now, I am gathering a list of buyers so we can prepare and be ready with a property set to go as soon as the program funds again. Working closely with a local lender who specializes in these programs, I plan to help my clients be among those who benefit from these plans BEFORE THE MONEY RUNS OUT.  The money does run on fairly quickly, so, if you think you might qualify, call now!!

Call me to get on the list of buyers. Call me for info about programs in other cities and other counties.

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L.A. County: December 2008 Home Values

Seal prior to 2004 lawsuit threat
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You guessed it–home values are still going down. December home sales for L.A. County show a median home value of $320,000, down from the $340,000 of november and 36% lower than November of 2007. Of course, neighboring counties are doing worse, some by a wide margin, but that is hardly cause for joy. There’s no doubt we’re all in this together.

As always, some areas are in worse shape than others. By now, we expect to see huge price drops in North L.A. County and we surely do: Lancaster shows medians of $115,000 and $116,000 [93534,93535], representing drops of 50% and 38% respectively over last year, while 93536 shows a median of $199,000, 35% less than last year. This is grim news as it most certainly means foreclosures and short sales for many. Those that remain must somehow deal with a loss of up to 50% of their home’s value over last year. Sadder still is the story in Palmdale where one ZIP[93591] has lost a spectacular 74% of its median home value in one year to arrive at a crushing $65,000.  Other Palmdale areas show losses of 46% to a median of $116,000 [93550]and 35% to a median of $225,000 [93551].

Other areas hard hit by the home value drop include many areas in Los Angeles City, including Hawthorne, Watts and Compton along with others. In our own area, Pomona continues to lead the way down with a 50% drop in 91768 to a median of $173,000, 41% in 91766 to a median of $223,000 and 38% in 91767 to $216,000. Other large drops occurred in Baldwin Park [42% to $235,000], South El Monte [41% to $270,000], Whittier 90602 [47% to $318,000], but, for the most part, the San Gabriel Valley‘s median home values are higher than the county median and have dropped less.

San Dimas, for instance, shows a 14% drop over last year to $465,000, though that is based on very few sales, itself a poor harbinger for the future. Arcadia dropped about 24% to a median of about $750,000 across its two ZIP codes. Monrovia is down 11% to $478,000, again well about the County median.  Covina has lost around 20% to a median in the high $300,000s.  Walnut has actually gained value to a median of $634,000. Guess you’re doing something right, Walnut. Glendora is down a bit over 20% in both 91740 and 91741 to medians of $343,000 and $419,000 respectively. La Verne is down 6% to $465,000 which represents very good value. Buy in LaVerne. Claremont is down a measly 2% to a median of $525,000.

Many of these medians are based on very few sales, so we can expect them to change, possibly radically, inthe near future. South Pasadena, for instance, now is up 11% to a median of $1,200,000, but that is  based on only 3 sales for the whole month. Condo sales have been abysmal, as expected, and many median values are based on 1 or 2 sales. The median condo price in L. A. County is $290, 000, down 25% over November 207. Sales, though, are way off.

It’s clear that the pace of decline is slowing and the median for L. A. County is dragged down by horrendous numbers in some parts of the City of L. A. as well as Palmdale, Lancaster and the high desert areas  like  Littlerock [down 51% to a median of $140,000]. Established suburbs, such as those in the San Gabriel Valley, with good schools, well-managed city governments and alreay-built and paid-for infrastructure are doing much better than outlying districts. It is also true, though, that if our Current Recession deepens cities will be less able to maintain these infrastructure amenities in the face of shrinking  tax base  from closing auto malls, lost retail outlets and rising unemployment.

Statistics provided by MDA DataQuick and are printed in the L.A. Times.

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Where Are Those Foreclosures? An Update

Locally, the rate of foreclosures continues to rise. Previously, the worst of the crisis seemed limited to Riverside and San Bernardino Counties, but, little by little the foreclosure boom has extended to the San Gabriel Valley as well.

For some quick examples, let’s look at one of the worst hit areas, Azusa with 27 foreclosures priced from $159,900 to $659,000. As noted here previously, an obvious place where foreclosures will be widespread is anywhere with many new homes. Voila Azusa where home builders have flooded the market in the past 5 years. This is one reason so many foreclosures are occurring there.

Covina is another foreclosure hotspot with 30 currently on the market ranging in price from $184,900 to $729,000. Single family homes priced below $200,000 are still  a rarity, so  the lower figures are usually condos. In West Covina currently 48 repos are on the market, priced from $205,000 to $527,000. Even pricey Walnut has 6: $209,900 to $994,900. Prestigious Claremont has 9 priced from $237,500 to $489,900.

LaVerne has 6 foreclosures for sale. San Dimas has 8 priced from $269,900 to $631,659. Glendora also has 6 with prices starting at $297,000.

In the western San Gabriel Valley fewer new homes can be built as the area has been built up for a long time. Nevertheless, here as elsewhere, foreclosures are abundant. Our largest city, Pasadena has 32 on the market ranging from $219,000 to $649,000. Monrovia has 10: $220,000 to $579,000. Altadena shows 12 REOs, priced from $190,000 to $565,000. Tiny South Pasadena has 3 and Arcadia has 4.

Economic woes have hit Duarte a bit harder and it shows. Duarte has 16 foreclosures ranging from $106,900 to $474,000.

As always, though, the title of Heartbreak City goes to Pomona which now has 119 foreclosure listings, priced from $106,600 to $454,000 for a lovely 4-bedroom in Phillips Ranch.

Besides our own misery, we also know now that nationwide 12 million homeowners are underwater or owing more than their homes are worth. That is definitely true here as well where on average prices have dropped 25% to 30% over the last year, creating many more “underwater” homeowners.  Of course, that presages more foreclosures in the future as these homeowners bail out of their now way overpriced homes.

L.A. County Home Sales: August 2008

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.

L.A. County Home Values for June 2008

Prices continue to slide. June median home value in L.A. County has  slipped to $425,000, down $10,000 from last month and 26.7% over May of last year. Our neighbor Orange County is down a remarkably similar 25% to a median of $550,000. Remember prices started their precipitous drop starting last August when the sub-prime mortgage crisis first hit the news and lenders in a panic changed their guidelines almost weekly if not daily. Prices plummeted starting last August so we still have a couple of months to go…

As always, the biggest drops, up to 50% and even above are in Lancaster and the Antelope Valley. Add to that Watts with a 52% drop to a median of $196,000, Compton and other parts of the City of Los Angeles. Similar blue-collar areas in the San Gabriel Valley did better, though it’s still catastrophic. El Monte dropped by about 20% to a low of $350,000; South El Monte took a 30% hit to a median of $342,000. LaPuente is down 35% to about $300,000. Baldwin Park is also down 30% to a median of $300,000. Azusa clocks in at 30% down toa median of $320,000. Pomona averaged over a 30% loss to a median of about $300,000. Duarte is holding up surprisingly well, having lost only 18% to a median of $392,000.

A big surprise is Hacienda Heights which has lost 40% of its value, down to a median of $392,000. Other cities in the San Gabriel Valley aare dipping below the L.A. County median–West Covina to about $399,000, Whittier with five residential ZIPs has three averaging around $350,000, but 90602 and 90603 while still losing 20% in value show median prices of around $475,000. Pasadena, our largest city, is also a mixed bag. Altadena has dropped by 24% over last year, but still posts a median of $524,000, well above the county average. Southwest Pasadena posted an eye-popping 50% increase in value to a median of $1.250,000, while Pasadena 91103 which includes Linda Vista dropped a stomach-churning 58% to an average of $446,000.

So, which areas are still making it? Well, San Marino, not unexpectedly, is still raking it in with a 22% rise over last year to a new median of $1,699,000. Obviously, some buyers are still out there. South Pasadena jumped over 50% to a new median of $1,270,000. Collapsing freeways running through the town apparently don’t deter the very well-off. Our previous champions, Palos Verdes and Rancho Palos Verdes, both have now dropped about 5% to just above the $1,000,000 median mark. Must be tough.

Our own Glendora, San Dimas, La Verne are not doing too badly. Glendora has dropped by about 8% to a median of around $480,000, while San Dimas has dropped 15% to $450,000 and La Verne has plummeted 28% to a median of $479,000. Covina is down around 20% to a median of about $400,000.

Each month continues to show declines. The drops are less radical each succeeding month, yet it is hardly much consolation to homeowners who watch their equity fall away with each passing minute. This crisis is not over yet. Prices most likely will continue to decline for the next few months at least. What most of us homeowners can do now is simply: hang in there…

April Prices for San Gabriel Valley & L.A. County

Here we are almost to June, and now we have the April real estate prices for L.A.County.

As we’ve come to expect, prices are DOWN. For April 2008 as compared to April 2007, prices are down 21%. Since last year the sub-prime crisis hit in August and lenders almost stopped lending for about 7 months, we can expect that downward total to keep plummeting until at least August 2008. And, yes, prices will keep going downward, though at a slower rate until the end of 2008 and into 2009.

Again, as mentioned in previous posts, this is not so shabby really as prices were rising at a rate of 20% and in some places almost 30% for four years straight. The Affordability Index sank to an all-time low and sales stagnated. Now, at least, led by foreclosures and short sales, prices are down to more affordable levels for buyers. And, buyers, especially first-timers, so vital to a healthy real estate market and missing in action for years are returning.

So, where are we this month? L.A. County prices are down 21% for single family homes to a median of $450,000 and condos are down 14% to a median of $307,000. Given the vastness of L.A. County, that doesn’t mean much because everything depends on location.

Thus, Malibu prices are down 20% to a median of $1,735,000, while Pomona’s three zip codes are down 36.7% to a median of $273,000–big difference…. Then, we have Rancho Palos Verdes, a seeming winner just a couple of months ago, down almost 19% to a median of $968,000. Compare that to Baldwin Park down 21.7% to a median of $365,000.

So, which areas are the big winners? There are very few…In the San Gabriel Valley, San Marino’s values jumped 20% to a median of $1,465,000; San Dimas managed a 7% increase in value to a median of $530,000. Claremont and Glendora [91741] eked out a 3% increase to a median of $550,000 and $619,000 respectively. Way to go! Other cities increasing in value include parts of Santa Monica, Beverly Hills, Culver City and Hermosa Beach.

The rest of county posts pretty grim numbers—unless you are a buyer, of course.
Pomona was one of the hardest hit in this area followed by Arcadia [down over 20% to a median of $696,000 averaging its 3 zips], Azusa [ down 23% to a median of $355,000], Covina [down 24.4% to a median of $401,000 averaging its 3 zips] and the beat goes on… Diamond Bar is down 7% to $560,000; Duarte is down 8% to $442,000; even Sierra Madre lost almost 30% to a median of $680,000, while Monrovia is down 9% to $543,000. La Verne leads the pack with a whooping 31% loss in value to a median of $450,000. Pasadena has lost double-digit value in every single area even prestigious 91105.

To better understand what is happening, we do need to keep in mind several factors. First, home owners in some of the originally more inexpensive areas such as Baldwin Park, Covina, Pomona have more modest incomes and so are more likely to suffer in the current economic downturn, losing their homes to foreclosure in greater numbers. Foreclosure sales are about the only game in town at this point, and so are leading the downward price trends in the more inexpensive areas as first-time buyers come into the market.

Conflicting information for properties in more desirable areas–San Marino way up, for instance, while neighboring Arcadia and South Pasadena are way down, San Dimas is up while La Verne is way down when both share the same school district–is more problematic. Often, as with Rancho Palos Verdes, for instance, a few more months of statistics will give us a better idea. Initially, RPV looked immune to the crisis, but as this month’s stats show, it’s turned out to be every bit as vulnerable as neighboring Redondo Beach down about 21% over its 2 zip codes. Time will tell what is really going on.