First-time home buyers priced out in and around La Cañada
With the demand for housing in and around La Cañada Flintridge continuing to outstrip supply, those in the real estate industry say it’s still a sellers’ market, though a potential interest rate hike in the near future could change the trend.
The average La Cañada home for sale spent approximately 46 days on the market in June, up slightly from 41 days in May, according to second-quarter figures recently released by the Pasadena-Foothills Assn. of Realtors (PFAR). The average price per square foot is about $633, up from $594 in January, the report indicates.
Bill Podley, president of the association and of Podley Properties, said any home that is reasonably priced will likely attract multiple offers and get snatched up quickly.
“We continue to have a shortage of inventory throughout the Greater San Gabriel Valley, Los Angeles and even Orange County relative to the demand,” Podley said in an interview Monday. “One buyer wins and the other 11 go out and chase another house like the one they couldn’t get — it’s a hard cycle to break.”
That may be good news for Realtors, but it can be challenging for brokers whose clients are often turned away when the housing market is hot, says Stephen Azadian, a broker with La Cañada’s Town and Ranch Realty.
“It’s not a happy situation for brokers,” Azadian said Monday. “We’d like to see more of a balance.”
Both Podley and Azadian agreed that with the current median home price in La Cañada at about $1.3 million to $1.5 million and the average home price coming in even higher, around $1.8 million, it’s a market most first-time home buyers and young families can’t afford to break into.
Those who do often do so with help from parents, who contribute toward a substantial downpayment or purchase the house for them.
“It’s most formidable for a young family of first-time buyers to buy in La Cañada,” Azadian said. “We used to be able to get people who were professionals to come here. Now, a professional with a good job can’t afford to buy. I don’t even think anyone who makes less than $200,000 [a year] can consider buying in La Cañada.”
The broker said people bidding on homes inside city limits most likely already have a home in a nearby community, such as Glendale or La Crescenta, and are looking to upgrade.
Podley said additional interest continues to come in from wealthy people living in other countries, or from second- or third-generation Americans. While such buyers may be interested in residing in the home, many are looking to place their money in what’s widely viewed as a solid investment.
While Realtors and others who keenly follow industry trends don’t anticipate interest rates rising anytime this year, there’s an acknowledgment that could soon change. Podley advised those thinking about buying to consider taking advantage of low rates while they still can.
“If you can afford to get into something, with rates as low as they are, it’s an opportune time to buy,” he said. “You just need to buy wisely.”
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Sara Cardine, sara.cardine@latimes.com
Twitter: @SaraCardine
