POCKETS OF AFFORDABILITY : Prolonged housing slump has produced a buildup of homes under $200,000, opening the market to buyers locked out of the Southland since the 1980s.

When Randy Ward went shopping for his first home last November, he knew he wouldn’t be getting a fancy house with marble floors, gold-plated fixtures, a personal gymnasium or Olympic-sized swimming pool.

Not when he was shopping for a home in the $150,000 to $200,000 price range, which is all he could afford on the salary he earns as the principal of Whittier Elementary School in Long Beach.

But Ward, 35, got a pleasant surprise: Thanks to the Southland’s two-year slump in home prices and a 20-year low in mortgage rates, he discovered he could buy a much nicer home than he had first thought.

After looking at several houses, Ward settled on a three-bedroom, 1,400-square-foot home in North Long Beach that was originally listed for $189,900. Following some brief negotiations, the anxious seller agreed to his $165,000 offer.

“It was a great deal,” said Ward, who moved in last week. “It’s in a good area, it’s only 15 minutes from my job, the house is in good shape and the price was right.

“The bottom line is, I got a lot more house than I originally thought I would.”

Across Southern California, thousands of buyers are finding out what Ward discovered a few months ago:

The prolonged housing slump, coupled with single-digit interest rates, has brought homeownership back within reach of many people who were locked out of the Southland’s real estate market in the late 1980s, when rates were high and prices were soaring.

“First-time buyers are in the driver’s seat right now,” said Bob Edelstein, a professor and co-chairman of UC Berkeley’s Center for Real Estate and Urban Economics.

“They’ve got lower interest rates on their side. They’ve got lower prices working in their favor. They don’t have to worry about selling a house in this soft market, and there are so many homes up for sale that they’ve got a great selection to choose from.

“First-time buyers haven’t seen conditions this good in years. “

Still, the cost of buying a piece of the California dream remains high: The median-priced home in Los Angeles is $209,000, more than twice the national average. A typical house in Orange County is an even stiffer $239,000.

And although values have dropped in most market segments, prices for starter homes under $200,000 have bucked the trend and actually risen in many areas because lower interest rates have enabled thousands of renters to finally purchase a home of their own.

So you can’t blame buyers for feeling that finding an affordable home is an impossible task. Yet people who think they must move to the first-time buyer meccas of Riverside, San Bernardino, Palmdale or Lancaster and suffer long commutes each day to buy a home are mistaken.

Thanks largely to lower rates and softer prices, there are now hundreds of “pockets of affordability” within a reasonable drive of downtown Los Angeles--good neighborhoods with nice homes that sell for less than $200,000.

When The Times first went looking for these communities about two years ago, the search was limited to neighborhoods where a fair-sized number of homes could be found for less than $150,000.

But we raised that limit to $200,000 to keep pace with overall price increases in the first-time buyers’ market.

More than 75 real estate brokers interviewed for this story said they can’t recall the last time there was such a wide selection of affordable homes for sale--affordable, at least, by the Southland’s pricey standards.

All of these brokers work in neighborhoods within a 35-mile drive of the Los Angeles Civic Center, from Newhall in the north to Santa Ana in the south, the ocean on the west and the San Bernardino County line to the east.

That’s an area larger than the state of Rhode Island, covering nearly 4,000 square miles and containing more than 2 million homes and condominiums.

Each broker was asked to recommend the best neighborhood in his or her area where a home could still be purchased for between $150,000 and $200,000.

Although it’s impossible to list all the communities they mentioned, here are some of their best recommendations broken down into nine geographic regions:

SAN FERNANDO VALLEY

There are a staggering 13,000 homes for sale in this sprawling symbol of suburbia, making it arguably the best “buyers’ market” in all of Southern California.

“A lot of homes that would have sold for over $200,000 a couple of years ago now go for $180,000 or $190,000,” said Stan Weinshank, manager of the Coldwell Banker office in Granada Hills.

Perhaps the largest selection of lower-priced single-family houses in the Valley can be found in the area east of the San Diego Freeway and north of Roscoe Boulevard--in San Fernando, Pacoima, Sun Valley, Panorama City, Sylmar and parts of North Hollywood.

“For $175,000, you’d have no trouble finding a nice three-bedroom home with one or even 1 3/4 baths in there,” Weinshank said.

“There are even some houses in the $150,000s and low $160,000s, but the neighborhood might not be as nice or the house might not be in great shape.”

Buyers who can afford a house closer to $200,000 often go to areas that have a bit more prestige, such as Granada Hills, Mission Hills and parts of Van Nuys, Reseda and Canoga Park.

There is also a good assortment of condos and townhouses scattered about the valley for less than $200,000, even in fashionable Sherman Oaks and Encino.

“There are some that are selling for $120,000, but you really need to spend at least $150,000 if you want a decent-sized condo in a reasonably good area,” said Temmy Walker, president of James R. Gary East Ltd. in Studio City.

WESTSIDE OF LOS ANGELES

Few areas of the Southland are as expensive as the Westside: A recent check of the multiple listing books that realtors use to locate homes showed not a single house for under $200,000.

“You’ll see a single-family house pop up that sells for under $200,000 on this side of town every now and then, but they’re usually under 1,000 square feet and on a small lot,” said Elaine Golden-Gealer of Jon Douglas Co.’s Santa Monica office.

If you’re interested in a condo, you’ll find a good selection of units in the $150,000 to $200,000 range in Culver City, Baldwin Hills, parts of West Los Angeles and Santa Monica.

Several condos and condo conversions in the $110,000 to $200,000 range can also be found in Hollywood and West Hollywood.

“If you’re looking in Hollywood, you’re going to find most of those condos north of Franklin Avenue,” said Vance Otis of Vance Otis Co. Realtors.

“The condos in West Hollywood are all over the place,” he said. “You’ll find a lot of them on nice little streets, like Kings Road, Olive Drive, Larabie and Crescent Heights.”

SOUTH BAY

Few parts of the Southland offer a more diverse collection of neighborhoods than the South Bay, an area roughly bounded by Inglewood on the north, San Pedro to the south, the Harbor Freeway on the east and the ocean on the west.

Prices in most parts of Manhattan Beach, Palos Verdes and virtually every other community adjacent to the water left the reach of all but the most well-heeled buyers long ago.

However, several nice communities farther inland have a good selection of condos starting at about $150,000, and some neighborhoods even have single-family homes at that price.

“We’ve got a lot of homes down here in the $150,000 to $175,000 range,” said Bob Anderson of Belmar Realty in Carson.

“And unlike a lot of other areas, we’ve been seeing some pretty decent appreciation over the past couple of years because the first-time buyers’ market here is pretty strong.”

For $150,000, Anderson said, you can buy a three-bedroom, one-bath home with an enclosed garage west of Avalon Boulevard.

If you’re looking in the $180,000 to $200,000-range, you’ll get three bedrooms and up to 1 3/4 baths east of Avalon, an area that some brokers say is a little better.

Another good area with a plethora of homes under $200,000 is Gardena, a heavily Asian community with ocean breezes that’s convenient to other parts of the South Bay and only about 15 miles from downtown Los Angeles.

“You can get a brand-new townhome that’s really nice for $190,000, or an older one for $175,000 to $185,000,” said Howard Liu of Ken Nakaoka Co. in Gardena.

“Most of our (single-family) homes sell for around $210,000, but you’ll occasionally see a three-bedroom, one- or 1 1/2-bath house in central or south Gardena for $200,000 or less.”

A larger selection of single-family homes under $200,000 can be found in the nearby “Harbor Gateway” area, roughly bounded by Vermont Avenue on the west, Harbor Freeway on the east, El Segundo Boulevard on the north and Artesia Boulevard on the south.

“You can get a two-bedroom, one-bath house there for about $135,000, and a three-bedroom, one- or 1 1/2-bath house for $150,000 to $190,000,” Liu said. “It’s one of the most affordable areas in the entire South Bay.”

Condos and an occasional single-family home for less than $200,000 can also be found in many parts of Inglewood, Lawndale, Hawthorne and Westchester.

LONG BEACH AREA

As in the South Bay, home values in many parts of Long Beach and surrounding areas--especially those close to the water--have skyrocketed over the past several years.

Prices in the beach communities of Belmont Shore and Naples, for example, often top $1 million.

Still, hundreds of well-built older homes and newer condos can be purchased for between $150,000 and $200,000 in north and west Long Beach and many surrounding areas.

“We’ve got great freeway access, great weather, and now we’re linked to downtown L.A. by the Metro Rail,” said Cheryl Honer of Coldwell Banker’s Long Beach office.

“I’ve seen a lot of working couples move here because we’re sort of a midway point between Los Angeles and Orange County,” Honer said. “The husband might work in L.A., and the wife works in Anaheim. They choose Long Beach so neither one has to make a long commute.”

Local brokers say that two Long Beach-area neighborhoods with some of the best appreciation potential are the Wrigley area--bounded by Wardlow Road, Santa Fe Avenue, Pacific Avenue and Pacific Coast Highway--and the “South of Conant” area in Los Altos, between Conant Park and South Spring Street.

“There are some really nice homes in there that you can still pick up for $175,000 to $200,000,” said David Carden of the Riedy Co.

“The homes are well-kept . . . a lot of young couples have been moving in, and both areas are on the upswing.”

Other good areas with a fair-sized number of houses and condos under $200,000 include Lakewood, Signal Hill, Paramount and Bellflower.

SOUTHEAST AREA

Few parts of the Southland have a better selection of homes under $200,000 than the Southeast area of Los Angeles, an area bounded by Montebello on the north, Whittier and La Habra Heights on the east, Artesia (91) Freeway on the south and the Long Beach (710) Freeway on the west.

“We’re loaded with houses that sell for between $150,000 and $200,000,” said Mike Poff, president of the Norwalk/La Mirada Board of Realtors.

Many budget-minded buyers are lured to Norwalk, a largely blue-collar community with a reputation for good schools and other city services.

“You can still find ‘starter homes’ down around Alondra Boulevard and Norwalk Boulevard (near the southern end of Norwalk) for as little as $110,000,” Poff said.

“It’s easy to find a two-bedroom home in the $140,000s, and a three-bedroom, one-bath in the $160,000s,” Poff said.

There’s also a good selection of two-bedroom “starters” in the $140,000-range in Pico Rivera, Whittier and surrounding areas. A three-bedroom, 1 3/4-bath house can be picked up for $170,000 or $180,000.

“There are some really good buys in the Whittwood area right now,” said realtor George Reyes, referring to the area bounded by Whittier Boulevard, Santa Gertrudes Avenue, Colima and Lambert roads.

“You can get a three-bedroom, 1 3/4-bath house on a tree-lined street there for $179,000 or $189,000. Two years ago, they were selling for $218,000 or $220,000.”

Buyers who are looking closer to the $200,000 mark often choose La Mirada, one of the Southeast area’s more prestigious areas.

Central Montebello also has its share of houses for under $200,000.

“Look between Beverly Boulevard and Whittier Boulevard,” advised Irma Acosta of the Montebello Board of Realtors. “It’s a real prime area, with great schools and homes that show lots of ‘pride of ownership.’ ”

DOWNTOWN/CENTRAL LOS ANGELES

Buyers who don’t want to spend much time on the Southland’s clogged highways and byways can find thousands of affordable homes in the general downtown area, including the central business district, South-Central Los Angeles, East Los Angeles and a few communities north of downtown.

There are three affordable condominium complexes in the heart of the Civic Center.

A one-bedroom unit at the Skyline development at 9th and Flower streets can be purchased for $109,000, said Rob Nesbitt of Wilshire Metro Realty Inc.; $180,000 “buys a nice two-bedroom unit on the upper floors with spectacular views,” he said.

One-bedroom condos in the Promenade at First and Hope Streets start about $130,000, but a larger one-bedroom unit on an upper-floor would cost an extra $20,000. Two-bedroom units start about $215,000.

Likewise, two-bedroom units at the Bunker Hill development, at 800 W. First St., start at about $225,000. But studio apartments in the complex can be purchased for $100,000 to $120,000, and one-bedroom units start in the $140,000s.

One of the hottest-selling affordable areas a bit south of downtown is Leimert Park, an older neighborhood that’s roughly bounded by Crenshaw Boulevard on the west, Rodeo Road on the north, Arlington Boulevard on the east and Martin Luther King Jr. Boulevard on the south.

“You can find smaller starter homes for $175,000 there, and a nice three-bedroom, one- or 1 1/2-bath house for $200,000,” said Doris Horne of Prudential California Realty’s nearby Culver City office.

“You’d be just 10 minutes from downtown and 10 minutes from all the shopping on the Westside. It’s an ideal location.”

There’s an even larger selection of homes under $200,000 farther south, in Huntington Park, Lynwood, Bell, South Gate and the unincorporated part of the county that parallels the Harbor Freeway.

South Gate, in particular, tends to attract many first-time buyers who like the city’s tree-lined streets, 1930s-style bungalows and newer, contemporary-style homes.

“Affordable homes are scattered all over the city,” said Nick Velko, president of Horizon Realty. “For $150,000, you’ll get a two- or three-bedroom starter with between 800 and 1,000 square feet.

“For $200,000, you’ll get a nicer, three-bedroom, two-bath home in the Hollydale District. That’s in the southeast part of town, where the homes are a little newer.”

Another nice but affordable area is Lincoln Heights, on the eastern boundary of downtown Los Angeles.

“I’d look in the area below North Broadway, east of Daly, west of Lincoln Park and north of Main Street,” said Rick Chang of Goodwill Realty. “You can get a three-bedroom, one- or 1 1/2-bath home in a nice neighborhood there for around $160,000.

“If you work downtown, you’d be living right next door. And if you have to drive east to get to work, you’d be going against the traffic in both the morning and at night.”

Another eastside area popular with first-time buyers is El Sereno, home of Cal State Los Angeles. It’s easy to find a small starter home on its desirable eastern border (next to Alhambra) for under $175,000: Houses in less-desirable areas can be purchased for below $125,000.

The sales pace has also picked up in the so-called “L.A. 22” portion of the Eastside. The community--bounded by Atlantic, Beverly and Whittier boulevards and the eastern edge of Montebello--got its nickname because it makes up much of the 90022 ZIP code.

“A starter home that’s in pretty good shape would be around $155,000, but a three-bedroom would be closer to $165,000,” said Diane Lopez, an agent with Denton Realty.

“There’s a real feeling of community here, and a lot of the area is served by the (respected) Montebello School District.”

Farther north you’ll find a good selection of affordable single-family homes in Glassell Park, another largely Latino area that’s roughly bounded by Figueroa Street, San Fernando Road, Isabelle Drive and Fletcher Drive.

“You can find a smaller home that needs a little work for around $130,000, and some nice three-bedrooms in the $150,000s and up,” said Rodolfo Montoya, owner of RM Realty.

“We’re close to downtown, and the local schools have some very good bilingual programs.”

Homes in the $150,000 to $200,000-range can also be found in a few other areas just north of downtown, including Highland Park and Echo Park.

Buyers who can afford a house closer to the $200,000-mark sometimes get lucky and find a smaller home in Mt. Washington, a hillside community about 15 minutes north of downtown Los Angeles that has been attracting many white-collar workers who commute to the civic center.

WEST SAN GABRIEL VALLEY

Prices here zoomed when the real estate market was booming in the late 1980s, pushing homes in many parts of the region beyond the reach of most first-time buyers. It’s not uncommon to see homes listed for more than $500,000 or even $1 million in many parts of Arcadia, San Marino and South Pasadena.

But lower interest rates and the recent softening in home values have re-opened doors to first-time buyers in many other parts of this area, which is roughly bounded by Fremont Avenue on the west, Pomona (60) Freeway on the south, San Gabriel River (605) Freeway on the east and the Angeles National Forest on the north.

There’s a good selection of single-family homes in the $150,000 to $200,000-range in the northwest corner of Pasadena, an area that’s reaping the benefits of an ambitious redevelopment plan by the city.

“Look west of Lake Street and north of the 210 (Foothill) Freeway,” said Dana Pinsky of Jon Douglas Co.’s Pasadena office.

“You can still find a three-bedroom, one- or even two-bath home in there for under $200,000, and it’s probably going to be in pretty good shape.”

Pinsky said that there is also a good selection of affordable homes in the northwest corner of neighboring Altadena, north of Woodbury Road and west of Fair Oaks Avenue.

“Altadena is an ‘up-and-comer,’ ” she said. “It’s beautiful and ‘woodsy,’ yet it’s less than a half-hour from downtown L.A.”

The yearlong drop in mortgage rates and the two-year slump in housing prices has also made homes more affordable in Monterey Park, a city of 61,000 east of downtown Los Angeles where the average price of a house topped $225,000 not long ago.

“You can find a two- or three-bedroom, one-bath house south of Reagan Avenue and north of the Pomona Freeway for between $185,000 and $200,000,” said Fred Rivero, manager of the local Re/Max office.

“The city services here are good, and we’re only a 10-minute drive from downtown L.A.”

A bit farther east, Duarte and Monrovia also have an abundance of three- and four-bedroom homes in the $150,000-to-$200,000 range.

EAST SAN GABRIEL VALLEY

Literally thousands of single-family homes for less than $200,000 can be found here in the East San Gabriel Valley, an area bounded by the 605 on the west, the San Bernardino County line on the east, the Orange County line on the south and the foothills of the Angeles National Forest on the north.

“Everything’s within an hour’s drive from here--the beach, the mountains, downtown L.A.-- everything, “ said Robert Bodkin of Bodkin Co., a San Gabriel-based real estate firm.

Bodkin said that the less-expensive homes tend to be on the eastern end of the valley, which makes for a longer commute if you work in downtown Los Angeles.

Still, the abundance of well-built, affordable homes in the area continues to lure first-time buyers even if it means that they’ll have to spend a little extra time on the freeway.

Perhaps the least-expensive community in the valley is Azusa, a little town that’s one of the last stops before the Foothill Freeway enters San Bernardino County.

“A lot of our buyers are people who were priced out of the markets farther west, but don’t want to move all the way out to Riverside or San Bernardino,” said Sam Longtin, who owns the local Century 21 office.

“You can still find a nice, two- or three-bedroom home with two baths and a two-car garage south of Foothill Boulevard for $125,000. If you can swing $165,000 to $200,000, you can move north of the boulevard and find a larger home, closer to the mountains, that might even have a pool.”

There are so many other affordable areas in the East San Gabriel Valley that it’s impossible to list them all. Here, briefly, are some of the better areas with an abundance of homes priced under $200,000:

* Baldwin Park, in a triangular-shaped area bounded by Ramona Boulevard, Francisquito Avenue and the 605 Freeway.

* Pomona, starting around Arrow Highway and moving south to Mission Boulevard.

* Covina, a city with an excellent school system where a group of smaller homes can be found between Valley Boulevard, Azusa Avenue, Nogales and Renault streets.

Other pockets of homes priced between $150,000 and $200,000 can be found in San Gabriel, Temple City, Glendora, Irwindale and surrounding areas.

Although a $200,000 single-family house is a rarity in pricey Arcadia, some condos in that price range are still available.

ORANGE COUNTY

Although the southern part of the Big Orange is more than 60 miles south of downtown Los Angeles, many cities on its northern boundary are within a 35-mile drive from the Civic Center and have a good selection of homes in the $150,000 to $200,000-range.

“Santa Ana, Garden Grove, Westminster, Anaheim, Fullerton--all of them have houses in that price range,” said Paul McKinzie of Century 21 Casa Grande in Santa Ana.

In those cities alone, McKinzie said, there are more than 4,000 homes currently for sale with asking prices below $200,000.

“For $150,000, you’ll get a two-bedroom home in an acceptable area, but it’s going to need some work,” he said. “For $175,000, you’ll get three bedrooms and 1 1/2 baths. It’ll be in OK condition, but it might need some paint.

“And for $200,000, you’re going to get a sharp home with three bedrooms and maybe even two baths that’s in move-in condition.”

Buena Park also has a good selection of homes for less than $200,000.

“You’ll find a lot of homes for $150,000 in the area that’s between Beach Boulevard, Western, Orangethorpe and Lincoln Avenue,” said Wally Courtney of Paul Kott Realtors. “There are some pretty good two-bedroom and even three-bedroom starter homes in there.

“If you’re looking closer to $200,000, you’ll find some real nice homes in the ‘Flowers Tract’ near the Buena Park Mall, on streets like Poppy, Petunia and Gladiola,” he said.

“You’ll get three bedrooms, two baths, a living room, dining room and maybe even a den.”

Single-family homes for under $200,000 can now even be found in Orange, a city that was largely “off-limits” to first-time buyers when the market was so hot a couple of years ago.

“Look in the El Modena area, near the foothills on the eastern edge of Orange, and around the intersection of Chapman Avenue and Lewis Street, in the northwest part of the city,” said Dion Baker of First Team Realty in Tustin.

“Orange has one of the best school systems in the county, and there are some nice little pockets where homes sell for right around $200,000. Two years ago, you would have had to pay $220,000.”

Those who prefer the condo lifestyle or simply can’t afford more expensive housing can pick up a spacious, three-bedroom unit for less than $150,000 in Fairlane Gardens, a sprawling, family-oriented development on Fairview Street about six blocks south of First Street in Santa Ana.

“If you’re looking for a condo in the $150,000 to $175,000 range, go a little farther south, down around MacArthur Boulevard,” Baker said.

“The condos are a little newer, the grounds are a bit nicer and the neighborhood itself is a little better.”