Think things are getting better? Not really…at least not in the housing market. The good part is that homes are actually selling. The bad part for homeowners is that prices continue to slide.
Median home prices in L.A. County–remember it’s one of the biggest, if not THE biggest county in the entire country–are down 26% from May 2007 to $435,000.
Some parts of the county are far below that–Palmdale, down a whopping 46% to a median of $170,000, La Canada/Flintridge down 36% to a measley $905,000 median, Maywood down 45% to $286,000. There are others, of course, but the outlying areas are hardest hit, followed by working-class cities where folks are the first to feel the effects of a recession in job loss.
Of course, our government continues to tell us we’re not in recession with facts and figures to prove it. For most of us out here in the trenches, it sure feels like a recession.
What about the San Gabriel Valley? How are we doing? For the most part, we are doing better than average. Azusa is down 26% to a median of $334,000. That’s an average percentage drop for the country and Azusa’s median price was always lower. Baldwin Park, LaPuente, Pomona and El Monte are all down more than average [30%, 28%,28%, 34% respectively]. The new medians in those cities are $311,000; $315,000; $295,000; $307,000. All are lower than the county median and always were. Again, these are lower-income communities where the recession will hit first. The foreclosure crisis is hitting here hardest as well.
Then, what about the rest of the San Gabriel Valley? Well, the rest is mostly better than the county average, though home prices are still considerably lower than last year. Covina in all ZIPs is down about 20% to around $400,000. Glendora in 91740 is down 20% to $390,000 while 91741 is down 16% to $496,000. Most Pasadena ZIPs are down. Diamond Bar is down 17% to $557,000.
In some of the better news, some cities are down by far less than the county average. Claremont is down, but only by 13% to $485,000. San Dimas is down 15% to $434,000 and LaVerne is down 14% to $527,000. The shifts from month to month are mainly due to the number of homes sold. And which homes are sold. More and more now, only the lowest-priced homes are selling quickly or the highest-priced homes which are, nevertheless, priced considerably less than last year.
East L.A. County even has a couple of success stories. San Marino continues to do well, rising 15% over last year to a median of $1,800,000. Pasadena’s prestigious 91105 is up 16% to $1,800,000 and 91106 is up 18.5% to $736,000. Well done, Pasadena! Whittier is down in all ZIPs, except 90601 which is up 6% to $491,000.
What does this good news say? To me, it says that buyers are just waiting to snap up bargains, even to the point of driving prices up to get into desirable neighborhoods. The proof is in the rest of L.A. County where other areas are also increasing in value–Rancho Palos Verdes, Palos Verdes Peninsula, Bel-Air, Venice, though areas perceived as over-priced are still losing–Brentwood, Beverly Hills, most of Santa Monica, Malibu...
Values are shifting. Buyers are selecting bargains and leaving the rest.
The lesson? If you’re a buyer, now’s a good time to buy, particularly as mentioned in a previous post, mortgage rates are starting to rise. For homeowners who are happy in their homes–please ignore this and just continue to live there. Prices will rise again in a few years. If you do want to sell, though, you must price your property appropriately or it will never sell.