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: 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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