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s the Altadena community grapples with the aftermath of the Eaton fire, which destroyed over 6,000 homes six months ago, residents are facing a daunting decision: rebuild or sell. The real estate market is softening, with prices and sales rates declining, according to data and interviews with local agents. Teresa Fuller, an agent in Altadena, notes that the "absorption rate is going down, down, down," as more lots come on the market and fewer close deals.
In March, a couple came to Fuller with a lot she estimated would sell for $905,000. Now they're ready to list it for $730,000, a significant drop in value. Another lot she represents has dropped from $1.295 million to $795,000. The data shows that the ratio of active listings to properties pending sale or under contract has increased significantly, with nearly 160 listings available and about 10 closing per week.
The shift in market dynamics is attributed to a growing inventory of lots, which are being listed at lower prices. Real estate agents like Ramiro Rivas anticipate that larger firms will enter the market as more lots become available. Black Lion Properties, a company managed by brothers Jesse and Edwin Castro, has purchased over a dozen lots burned in the Eaton fire, with plans to use some for their family and others for single-family homes.
For residents like Art Davis, who lost his home in the fire, selling is becoming an increasingly viable option. Despite his initial desire to rebuild, Davis' daughter Gina Gurewitz notes that finding a rental was "insane," and they eventually had to sell their lot due to pressure from their landlord. The decision to sell has become more accepted among neighbors, who are now facing the reality of a competitive buyer's market for lots and expensive housing options elsewhere.
As the community navigates this challenging landscape, residents must weigh the costs and benefits of rebuilding versus selling. While some see opportunities for investment and growth, others face difficult choices about their future in Altadena.
