Ann Wishart, Valley Press Business Editor
January 2, 2005
Housing market to stay strong in 2005
 
As trends go, the headlong dash of families to snatch up homes in the Antelope Valley may be one of the most far-reaching and financially intensive the region has experienced. The primal need for shelter, coupled with solid employment and low interest rates, catapulted thousands of renters out of metropolitan Southern California in the last year. Affordable, available homes caused many of them to land in the Valley. The result is that billions of dollars in the building, buying and selling of homes and property is circulating around the Antelope Valley.
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In the last 11 months, the resale value of homes sold in the Palmdale-Lancaster area has increased between 30.8% and 51.2% since November 2003. Median prices ranged from $187,000 to $363,000 in Palmdale and from $229,000 to $275,000 in Lancaster.
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Land sales have picked up for both residential and commercial ventures. Property with infrastructure in place is selling for $40,000 to $80,000 an acre, depending on location. But finding property with infrastructure - utilities and paved streets - in place is becoming more of a challenge. "We can keep up with the infrastructure," Bozigian, a local real estate broker said. Demand for such property is high and developers and cities can only prepare lots so fast. It creates a lot of stress in the real estate market, but his years of experience in the field help him see the long view. "It always seems to work out," and investment in real estate isn't likely to drop off until interest rates go above 7% to 7.5%, he said. He predicted 2005 will continue the trend toward growth in the real estate market, partly because the Valley is still affordable compared to much of the rest of the state.
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Home building permits issued
Source: Construction Industry Research Board 2004
  Jan.-Nov.'04 Jan.-Nov.'03 % change
Palmdale 1,184 862 37.4%
Lancaster 1,599 849 88.3%
Unincorporated 457 278 64.4%
Total 2,492 1,597 56%
Value* of home building permits
*Dollar amounts in $1,000s
  Jan.-Nov.'04 Jan.-Nov.'03 % change
Palmdale $263,608 $167,463 57.4%
Lancaster $302,084 $138,258 118.5%
Unincorporated $104,813 $64,378 62.8%
Total $670,505 $370,099 81.2%
Source: Construction Industry Research Board 2004