strategic location due to the strategic location of palmdale and lancaster on the outer edge of la county, the rent values are high, typical of la county ($1100-1900 a month for a typical 3-4 bed home). yet, the housing prices are low ($80-200k), and have taken a beating over the last 3-4 years making this area the opportunity of a lifetime to create positive cash flow on rental properties. as an added note, there are an abundant amount of renters in the market right now and we currently have a waiting list of renters who are waiting for one of our homes. lancaster and palmdale both named as one of the fastest-growing cities in america, the cities of palmdale and lancaster have enjoyed tremendous growth and prosperity over the last decade. the more than 300,000 residents who call palmdale or lancaster home enjoy a pleasing quality of life in this family-oriented community. palmdale and lancaster are approximately 70 miles north of the city of los angeles in southern california’s antelope valley. the metro-link passenger rail service to the los angeles basin and other parts of southern california provides service to lancaster and palmdale making the commute easier for residents that work in the city of los angeles. with affordable housing in abundance, the cities of palmdale and lancaster are a perfect place to call home. with a mixture of new housing developments and quaint, mature neighborhoods, the housing communities have a variety of options from which to choose. the real estate market according to the 2009 REAL ESTATE AND ECONOMIC OUTLOOK presented by First american CoreLogic, existing Home Sales in California have fallen sharply since its peak in March of 2007. The median selling price is off 53% since March of 2007, and has picked up steam since the onset of the credit crunch last August. They reported that the drop in the median price in california is partially due to shifts in the types of homes selling, and how those homes are financed. specifically in the Antelope Valley (City of Lancaster Area), the data presented in this publication states “The rate of foreclosure among all households in the Antelope Valley is more than 6 times the rate in the greater Los Angeles County.” (Economic Outlook, 08’) Additionally, “Through the first two months of 2008, sales of existing single family homes are off 52 percent compared to the first two months of 2007. The current sales level is the lowest observed in our database and may be the lowest on record in the Antelope Valley. In 2007, there were 4,140 home sales, a decline of 51 percent from 2006 and 64 percent from the most recent peak in 2005.” Current median selling values for 2009 have fallen to the same level as the spring and early summer of 1989, which has created an unprecendented opportunity for real estate investors who are looking for significant appreciation over the next several years. housing outlook for the antelope valley according to the real estate and economic outlook for 2008, “either later this year or by early 2010, housing demand is expected to rebound. with the housing correction now in its third full year, home buyers who are delaying the purchase of homes are accumulating. this sharp downturn in home sales will be replaced by a sharp upturn in transactions when the recovery begins. the sharp upturn in home sales will cause home prices to increase after 2008." as mentioned earlier, due to the strategic location of palmdale and lancaster on the outer edge of la county, the rent values are high, typical of la county. however, the housing prices are low, and have taken a beating over the last 3-4 years making this area the opportunity of a lifetime to create positive cash flow on rental properties. obviously, all investors should do their own due diligence in determining the investment risk. this economic outlook is an independent study not affiliated with realty pro inc. please contact us if you are interested in investing into one or more of our homes. thank you! realty pro inc.
Please Note: Realty Pro Inc. is a passive custodian and does not provide tax, legal, or investment advice. Any information communicated by realty pro inc. is for educational purposes only, and it should not be construed as tax, legal, or investment advice. Whenever you make an investment decision, please consult with legal, tax, and accounting professionals. |