Ann Wishart, Valley Press Business Editor
Monday, June 10, 2002
Valley Housing Booms
PALMDALE: The housing boom in the Antelope Valley shows no sign of abating as buyers snap up new and existing homes as fast as they come on the market. In search of the perfect home at an affordable price, shoppers have been converging on the Antelope Valley, sometimes competing for the privilege of becoming property owners.
 
Shoppers camped out for three days in January at the Twilight ridge housing development in west Quartz Hill, said Susan Bolin, new home consultant and saleswoman for parent company Greystone Homes Inc. On the west side of Palmdale, builders Skyline, Beazer, Harris and Forecast are putting up homes in the Rancho vista development. Beazer and Forecast are ready to pull permits to build 310 homes on lots in the area of 25th and 30th streets west and Avenue P-8, according to Laurie Lyle, city planning director. The tentative map of the development was approved some time ago and the sales models have been OK'd by the city, she said.
 
Existing home sales are equally buoyant. Realtors often receive several offers on homes for sale, usually within a couple of weeks of listing, said Dana Haycock, immediate past president of the Greater Antelope Association of Realtors. "The market is very active," she said. "Prices are going up all the time for well-priced, good houses. Buyers are actually pushing the prices up, often bidding $3,000 to $4,000 above the list price of an existing home, she said.
 
"We live in the most affordable part of California," she said. While Victorville and California City also have good prices on real estate, the Valley is closer to Los Angeles, which makes property here more desirable to many, Haycock said. The California Association of Realtors reported the Palmdale-Lancaster area was the most affordable place in the state in April, with 67% of the households there able to quality for a median-priced home mortgage in April. However, that figure was down from 68% in March and in April of last year, the CAR reported.
 
People hunting for homes are driven to aim for regions like the Valley, said Gretchen Gutierrez, acting director of the Building Industry Association in the Valley. "Los Angeles County, Orange County, the (South) Bay area, Ventura County - all the surrounding neighborhoods continue to price a number of people out of the market," she said.
 
When the median price of a California home topped $300,000 in April and $285,000 for a home in the southern part of the state, homes selling for closer to $200,000 in the Valley started to look good, Gutierrez said. The CAR predicts a tough summer for those in search of a chunk of real estate. "Low inventory, favorable mortgage interest rates and rapidly rising home price appreciation will continue to intensify the pace of home sales in the coming months," said Leslie Appleton-Young, CAR chief economist. CAR reported a two-month inventory of unsold single-family homes in April, half the number available in April 2001. Sales of existing homes in the state rose by nearly 30% compared to the same time a year ago, with prices jumping more than 26%, CAR reported. Only 32% of California households could afford to buy a home in January 2002 compared to 35% in January 2001, the association reported in March. Nationwide, 57% can afford to buy a home, a figure that held steady from last year. The figure suggest California may be the most desirable and least available domicile in the United States. "There simply isn't enough inventory available to meet the demand for homes," said Robert Bailey, CAR president.
 
It is not a new story for the state. Throughout the 1990s, its housing growth of 9.2% didn't keep pace with demands from a population that was growing by 13.8%, according to a Public Policy Institute of California publication released in May called California Counts. "This is in contrast to the rest of the nation, where housing growth was slightly greater than population growth," the publication said.
 
Permits issued for construction of new houses in the Antelope Valley indicate the building boom will continue to gain speed. In the first four months of 2002 compared to the first four months of 2001, permits issued in the unincorporated areas of the Valley rose by 76% (from 25 to 44); in Palmdale , they were up 23.8% (from 235 to 291), and they held steady in Lancaster, gaining less than 1% (from 126 to 127). The overall increase in the Valley was nearly 20% (from 386 to 462), according to figures from the Construction Industry Research Board. Approximate values for home construction in those periods rose 75% outside the cities, 22.4% in Palmdale and 7.2% in Lancaster, for an overall increase from the first four months of 2001 of 30.5%. Building costs in the Valley are around $100 per square foot, Gutierrez said, compared to about $200 a square foot in larger cities in the state.
 
Developments like Twilight Ridge highlight the demand in the Valley. The homes range in size from 2,300 to 3,200 square feet with four to six bedrooms, Bolin said. Prices start about $205,000 and top out at $260,000. Although the cost is somewhat high for the Antelope Valley, where the average home costs $130,000, that doesn't seem to be discouraging buyers. Sales have been good enough that Greystone may start another phase although additional land would be needed. Bolin is expecting a decision to be made this Summer.