A.V.'s new home sales up 70%
 

By Jim Skeen
Daily News Staff Writer

August 10, 2003
 

PALMDALE -- New home sales in the Antelope Valley jumped 70.7 percent this spring compared with the same months last year, a surge being attributed to affordable prices and a solid regional economy.
There were 403 new homes sold in the Antelope Valley from late April through late June, up from 236 homes last spring, according to statistics complied by The Meyers Group, a Costa Mesa-based real estate tracking company.

"The No. 1 reason is affordability," Michelle Wolkoys, an analyst with The Meyers Group, said of the surge. "The Antelope Valley is still the most affordable area in Los Angeles County."

The average sales price of a new home sold in the Antelope Valley also soared, climbing from $226,996 in spring 2002 to $275,736 in spring 2003, according to The Meyers Group. Despite the jump, the average sales price is still well below the statewide median home price of $376,260, new or resale.

Unlike the boom of the late 1980s and early 1990s when new home buyers in the Antelope Valley were predominantly first-time buyers moving into the area, the market now includes a mix of homeowners already in the region looking to move up to bigger homes.

"The Antelope Valley is now more of a self-sustaining market. There are more jobs in the area," Wolkoys said. "We're seeing more move-up buying."

The rise in the average sales prices reflects that move-up market, Wolkoys said.

Gregg Anderson, the developer of Palmdale's Rancho Vista master-planned community, said homebuyers from the San Fernando and Santa Clarita valleys used to make up about 30 percent to 40 percent of sales. Now they account for about 10 percent of the home sales.

"All the builders are not advertising in the San Fernando Valley or Santa Clarita Valley," Anderson said. "People (Antelope Valley residents) are moving up. With the low interest rates, they are able to sell their homes and move up. They can afford more of a house."

Anderson said the Antelope Valley home market is on the most solid footing he has seen in the 25 years he has been involved with the region.

Statewide, home and apartment construction has not kept up with population growth, officials say. Approximately 180,000 new homes and apartments will be built this year, below the 220,000 needed to keep pace with population, according to the California Building Industry Association.

"There is a huge demand for housing driven by the population growth," said Jack Kyser, chief economist for the Los Angeles Economic Development Corp. "There is a shortage of affordable housing, and that's where the Antelope Valley comes in."

Other factors boosting local home sales include a fairly strong economy in the High Desert, including a relatively strong aerospace industry, plus low interest rates for mortgages.

The Antelope Valley is also attractive in that it is relatively close to Los Angeles. Other affordable housing areas, such as Riverside and San Bernardino, are seeing housing tracts being built farther and farther away from the urban centers, experts say.

Kyser said he expects to see a steady climb in valley housing construction and that he does not expect a repeat of the housing boom and bust that hit during the 1980s and 1990s.

"If the builders don't remember, the banks will," Kyser said.

New home construction "starts" grew 2.84 percent in Lancaster and 5.19 percent in Palmdale between 2000 and 2003.

At the same time, however, the population of Palmdale grew 9 percent while Lancaster's increased 6.2 percent, said David Myers, executive director of the Greater Antelope Valley Economic Alliance.

"There's a 2,400-unit shortage," Myers said. "It's simple supply and demand that is driving the increase."

Among the large home-building projects in progress is the 5,200-home, 2,000-acre Anaverde Ranch, which has started construction after 10 years of delay.

Formerly known as City Ranch, the project was approved by Palmdale officials in 1993 after much debate about its impact on roads and city finances. The project stalled for years, however, as the Antelope Valley's real estate market went bust.

Anaverde Ranch home prices are expected to range from $150,000 to $350,000, on lots ranging in size from 4,000 square feet to 27,000 square feet. Homes will range in size from 1,500 square feet to 3,000 square feet.

The first homes will be ready to be occupied by late 2004, the developers said.

Five companies will build homes in Anaverde: KB Home, Forecast Homes, Beezer, Pacific Western and Richmond Homes.

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Jim Skeen can be reached at (661) 267-5743 and james.skeen@dailynews.com.
 

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