Published on Tuesday, October 20, 2015 by Land Century
A twin city to Palmdale, Lancaster is the 31st largest city in all of California.
But, youre outside of the hustle and bustle of Los Angeles, which is about 70 miles north of the city. Its a thriving city with a lot of entertainment and higher education opportunities for the entire family.
The Real Estate Market in Lancaster, CA
What we can derive from the real estate market data presented is that home prices this week are down slightly by 0.2%, but this doesnt paint a clear picture for the major increase in sales prices year-on-year.
Median home prices are up $16,000, or 8.7%, during this time. The average piece per sq. ft. has risen by 2.6% on the year. In retrospect, the national average for real estate growth on the year is 8.2%.
So, Lancaster is above the average in home price increase, which is great news for investors or anyone looking to buy land and build a home. The average listing price in the city is $226,316, but this figure does fluctuate greatly week to week.
The household and family income is also lower than the state average.
* The average household income in the state is $47,493.
* The average household income in Lancaster is $41,127.
Home prices peaked in the city right before the housing crisis hit, with highs being seen between 2006 and 2008. Since the end of 2012, the market in the city has been steadily increasing. We can see this easily with the average 3 bedroom home selling for $120,000 just 5 years ago, and the same homes selling for $188,250 between July and October of 2015.
The good news is that the market in the city is rising quickly, and its the ideal time for land investors to get land and build a house while prices are on the rise. The profit potential is huge at the moment.
Land Potential in Lancaster
Acreage prices vary greatly depending on what type of land is for sale. Youll find desert land in the city as well as land with pristine mountain views, and agricultural zoning land. A few recent sales will help you understand the citys land demands:
* 5 acres of desert scenic land sold for under $4,000. The price was under $800 per acre of land.
* An agricultural lot with 2.12 acres and a paved road sold for $4,999, or nearly $2,500 an acre.
These are just two examples going off of the most recent data. Analyzing the sales, we can surmise that desert land is less valuable, which is always the case. This land is less workable and less desirable as a whole due to the harsh conditions.
Land that is lusher and can be farmed is more valuable.
You can expect to pay between $800 and $2,500 an acre of land in the city, which is an amazing deal by all standards. And, most of the lots do have paved or dirt road access, so youll spend less to get the lot prepared for building. Even if you want to just hold onto the lot, the presence of any road access will raise the asking price greatly.
Keep in mind that these figures come from land for sale by owners. When you look at further data provided, youll be able to see what sellers are asking when theyre not selling land for cash. These values are rather impressive, and I will tell you why in just a minute.
* A 2.5 acre lot is going for $8,500.
* A 5 acre lot is selling for $20,000.
And, when you get closer to the center of the city, the land prices shoot up dramatically, with 10 acres selling for $110,000 divided into various lots. What this demonstrates is that the lands value goes up accordingly with the towns population.
This is the norm in most cities.
We can also see that cash sales will bring down the cost of the land by 40% - 50% on average based off of these figures. You may even be able to buy the land and sell it within a year for substantially more than you paid for it if youre willing not to sell for cash.
The more populated areas demand prices that are double the price, at least, than more rural areas of the city. All of this pertinent data demonstrates that as the city grows in population, the rural areas of land for sale in Lancaster will see a significant price increase. Its the same in every city where the land prices rise greatly as inventory declines.
Lancaster offers these ground floor opportunities that can be very lucrative for the right investor.
Entertainment, Dining and Schools
The city of Lancaster has a lot of restaurants and fun activities to enjoy. The Boba Cove & Café is a local hot spot as well as delicious Mexican cuisine and Mediterranean cuisine. An eclectic city, youll find Sushi bars, vegetarian and gluten-free cafes, and even Thai food in the city.
BLCD Cinemas is the place to go for a good movie, and they even feature leather reclining seats. The Antelope Valley Fair is a fun event that occurs every year and has everything from food and exhibits to concerts and truck shows. The destruction derby is a fan favorite and will have spectators at the edge of their seats as cars are destroyed in the mayhem.
There are also four higher education institutes in the Antelope valley:
* Antelope Valley College
* California State University
* West Coast Baptist College
* University of Antelope Valley
Summers in the area are hot with highs around 95 degrees, while winter highs are in the upper 50s. Overnight lows in the winter can dip to the lower teens, and there is an average of 8 inches of rain per year.