Day in and day out we profile properties in Arcadia and constantly remind ourselves how much money people would spend for good schools, good location and a generally a safe and welcoming neighborhood. Sometimes we forget that there are cities surrounding Arcadia that may offer more, or even less, home for the same price. I can see how empty nesters may not require the best school districts or young professionals choosing to pass on the maintenance that comes large lots.
Let’s pick a random value, say $759,000, and see what you can buy in Arcadia, Sierra Madre and Temple City.
#1 Arcadia – 3bed/3bath attached townhouse 2,340 sqft. Built in 2005.
209 S. Third Ave. #A
While this property lacks in lot size, it is made up by offering more living area square footage and a new construction.
#2 Sierra Madre – 3bed/2bath SFR 1,567 sqft. Built in 1967.
290 W. Laurel Ave.
To the North of Arcadia is Sierra Madre. For $744,900 you get a 40 year old home that’s greatly in need of remodeling. But it’s generally in livable condition and you’re just a few minutes drive from the Santa Anita Mall.
#3 Temple City – 4bed/3bath SFR 2,447 sqft. Built in 1924.
6019 Agnes Ave.
To the South is the small town of Temple City. TC has its fair share of new McMansions sitting next to traditional homes. For $759,000 you can buy an 84 year old property that’s been very well maintained and tastefully upgraded.
Don’t want to be chicken little or anything, but what will a record # of foreclosures and record oil prices do to the RE market.
I think that when you are considering affordability, the massive rise in Oil prices has to be factored in.
I think the combination of those items will force new home buyers to actually consider the price of their home and mortgage payment before purchasing.
Over the last several years, I’ve met people who bought or wanted to buy a home because real estate was a “good investment”. I guess spending 80% of your monthly income on your mortgage payment was ok when property values were appreciating at phenomenal rates.
Now that a tank of gas is going to cost $80 to fill up, buyers are in no rush to jump back into this housing market. We will see 2-3 years of depreciation and a few more years of stagnant growth as your average buyer will look to real estate as a place to live rather than an investment.