Looking at the last three years, 494 homes sold in 2012, 424 sold in 2011 and 439 sold in 2010.
Prior to the financial melt down that lead to this recession, one could expect an average of 610 properties selling each year to new home owners-about 50 homes sold per month.
Today, we are down to 35 homes per month.
We have a tad over 15,000 homes in the city. With the exception of the Hillsborough homes on the East side of town. Most homes were built in the late 50’s and early 60’s.
I want to share this basic information about the city housing units because unlike the media that is basically ignoring and/or trying to put a positive spin on the National and Southern California real estate market, the reality is that the old real estate adage “Location, Location and Location” is still the best base-line to determine what is happening to property values.
The Median household income in La Mirada is about $83,000, while the State’s median income is just under $59,000 dollars. I mention this because in reviewing the foreclosure activity for this report, I discovered that there are more foreclosures in the Hillsborough part of town than in the Foster Park area where the average median income level is much lower.
Since the beginning of the year, a full 28% of La Mirada homes have been sold due to a financial crisis (foreclosure). It is interesting to note that the Hillsborough area has seen more foreclosures than the Foster Park area.
Currently there are 93 properties in some stage of the foreclosure process. Again, Hillsborough leads the foreclosure activity with 14 foreclosures compared to the Foster Park area with only 10 Foreclosures. This should easily reveal to all residents that the economic recession is hitting the high income earners as well.
The most expensive property so far to be closed in La Mirada is on Placid Dr., which sold at a foreclosure auction on March 28, 2013 for $1,108,622 dollars.
Finally, 73 properties are pending sales in La Mirada and 20 properties have been canceled.
That’s the big picture for all of us to see. Now what does that mean to the individual home owner?
It means that the inventory of homes for sale in La Mirada is at an all time low!
As you can see from the chart, the blue line is rising and the green bar is falling. You can also see by the slope of the blue line that the gap is increasing quickly and we may have a mini-boom in property values this summer. But it will not be due to any economic recovery. It will be due to the lack of inventory of homes to sell in the city.
Banks continue to hold their REO (Real Estate Owned) inventories in their pockets or are selling them to long term investors to hold for at lest three years. La Mirada home ownership used to be over 87% it’s now down to 79% with many homes renting for over $1600/month.
How long this will go on is anyone’s guess.