Fresno County Approved TTM Lots Going Once, Twice…

Land Advisors Organization is pleased to say SHOUT! the handful of approved tentative tract maps (TTM) available for sale within Clovis’ city limits have been receiving multiple offers.  The City of Fresno is next to follow where lots previously located in “B” and “C” locations are quickly becoming the new “A” lots.   The time is now for developers and homebuilders to pounce on every reasonably priced TTM.  Call LAO’s Fresno office at (559) 549-6326 for a current list of available inventory.

POLL:  

HOME SALES:

  • Distressed homes sales are on the decline. FULL STORY
  • Home prices are up 18% from a year ago. FULL STORY

NEW DEVELOPMENTS: On November 7, 2012 The Madera County Board of Supervisors re-approved 4-0 the 1,656-acre, 5,190-home Tesoro Viejo planned urban community proposed by McCaffrey Group.

Source: Mark Utman, Marketing Consultant, (559) 549-6326

Indian Summer Stokes North San Diego County Coastal Market Activity

With the mid-year 2012 turning of the corner in the housing market in San Diego County, demand for housing and residential land along the North County Coastal region has heated up quickly.  Among the 15 actively-selling developments featuring new single family detached housing, the rate of absorption is approaching an average of three sales per month per development.  Most of these developments offer lots averaging between 4,000 and 6,000 square feet with approximately a third of them featuring quarter-acre lots.  New home prices range from the high $500,000’s to $1,350,000, for unit sizes spanning from approximately 2,000 to 4,650 square feet.  Seller incentives are falling and are typically in the one to three percent range.  At the same time, new home prices have begun to rise and average approximately 1.2% higher per development than a year ago at this time. In early September 2012, there were approximately 90 remaining new single family detached homes available for sale along the north coast. This is equivalent to about two months of supply given the current pace of absorption among the actively-selling developments.

Consequently, this robust recovery in the new homes market has elevated subdivision land prices.  Land Advisors Organization has seen recent subdivision land sales in the North County Coastal regions capturing prices equivalent to finished lot values spanning from approximately $425,000 for 6,000 square foot lots, up to $620,000 for quarter acre lots.  Taking advantage of this market momentum Land Advisors Organization’s San Diego Team are currently marketing two outstanding coastal properties for sale: Quail Meadows – an approved tentative tract map for 33 quarter acre lots in Encinitas and Meadowlark Canyon another 33 lots averaging over 5,000 square feet each.  The Meadowlark Canyon site is located in San Marcos, near that cities’ border with neighboring Carlsbad.  Team San Diego will also soon be marketing an ocean close property in North Coastal San Diego in concert with Land Advisors Organization’s outstanding Orange County Team. Details regarding this trophy property will be released in early October 2012.

For more information, please contact Bob McFarland or David Landes at (858) 568-7428.

Source: Bob McFarland, Marketing Consultant, (858) 568-7428 ext. 12

Fresno & Madera Counties Heating Up

Good news, Madera is on the rebound.  Better news, you can still find improved finished lots below replacement cost….better hurry because prices are expected to increase!  FULL STORY

VACANT FINISHED LOT INVENTORY BY THE NUMBERS

CLOSINGS: August 2012 – Land Advisors closed seven vacant lots within Tract 5351 to a private homebuilder.  The private homebuilder bought the lots to expand its presence in the City of Clovis.

HOME SALES: Existing homes in Fresno are selling fast!  In June, Fresno resales reported a median of 43 days on market compared to a median of 90 days on market at the peak.  This represents a 52.2% decrease in days on market for Fresno.  FULL STORY

FEES: City development fees for Coalinga have been waived until April 2013.  Contact Matt Power at (805) 845-2660 or Mark Utman at (559) 549-6326 for further details.

NEW DEVELOPMENTS: The controversial high speed rail construction along Highway 99 has been delayed until 2014. FULL STORY

Source: Mark Utman, Marketing Consultant, (559) 549-6326

Demand Rising for (Residential) Land in Fresno

More land buyers than sellers? That’s the story in Fresno today.  In preparing for the economy to rebound, builders are reloading their inventory of buildable lots.  However, finding lots at market rate prices is not easy in Fresno.  Lot inventory has been thinning since 2008 and only a handful of new maps have been recorded or are currently in process at the City.  Inferior locations are still quiet, but residential lots that are in A & B locations are receiving multiple bids.

  • April 2012 Finished Lot Inventory: Fresno = 1,051 Vacant Finished Lots; Clovis = 1,199 Vacant Finished Lots

April 2012 – Land Advisors closed additional finished lots on a rolling takedown to Lennar in southeast Fresno.  The public homebuilder bought the lots as an extension to a legacy project it already has under its wings.

Apartment activity is picking up: This month Santa Barbara Bank & Trust sold 8 acres of unimproved land, approved for 78 multifamily units.

ZONE CHANGE APPROVAL:  On April 4th, the Fresno Planning Commission  unanimously approved plans and a zoning change for a north Fresno 118-home development by McCaffrey Homes with a stipulation that homes on the east side of the project adjacent to the existing Bella Montagna development will be single story.  FULL STORY

  • The 13-acre site was originally zoned for commercial/retail use.  The recent approval by the Planning Commission is controversial for the local residents in the area, and the Fresno City Council will now meet on the issue to vote. (Watch the VIDEO via CBS 47)

GENERAL PLAN UPDATE:  The Fresno GP update calls for a more controlled approach to residential growth. Earlier this month, the Fresno Planning Commission unanimously endorsed Plan A which aims to maintain the current sphere of influence, and protects prime agricultural land from becoming more subdivisions.  Approval is slated for April 19th.

Source: Mark Utman, Marketing Consultant, (559) 549-6326

They’re Not Just Buying Cars (In San Bernardino Co.)

Chrysler Group, LLC posted increased sales of 34% in March, its biggest increase since 2008.  The private sector continued a 25-month job growth streak, adding 120,000 jobs.  Across the nation, foreclosures had the lowest quarterly total since the final quarter of 2007.

This frankly, is the kind of news that we’ve all been waiting… and hoping… and waiting, to hear.  But in our industry, home sales are all that matter.  So the question is: Do increased car sales, steady job growth and decreased foreclosures translate to the housing market?  We believe they do and want to highlight some of the recent activity in the land markets that “Team San Bernardino” covers.

  1. In Eastvale, Pulte Homes (NYSE: PHM) has sold 35 homes since January 1st (yes… 35. It’s not a typo).
  2. In neighboring Mira Loma, Richmond American (NYSE: MDC) is averaging 4 sales per month through the start of the year.
  3. After opening just three weeks ago, Meritage Homes (NYSE: MTH) has sold 5 homes in its Rancho Cucamonga project, Whispering Ranch.
  4. Beazer Homes (NYSE: BZH) is continuing to sell well in its Yucaipa and Upland projects, averaging approximately 4 sales per month in each project.

So Here’s the Trend…

Improved absorptions lead to decreased lot inventory.  Decreased lot inventory leads to dwindling pipelines.  And thus, dwindling pipelines lead to increased land acquisitions!

So stay steadfast brothers and sisters!!  We are nearing the end of the proverbial tunnel.

Source: Winn Galloway, Senior Marketing Consultant and Doug Jorritsma, Senior Marketing Consultant. You can reach them both at (949) 852-8288.

The Good Life is in the Santa Clarita Valley

The Santa Clarita Team is currently marketing Placerita Meadows, a 95-acre property located within the heart of Santa Clarita.  The subject site is zoned Mixed-Use Neighborhood (MXN), which allows for a variety of uses including residential, commercial and office.

The Placerita Meadows offering is a unique opportunity to control one of the last remaining residential/ mixed-use land developments within the City of Santa Clarita and the supply constrained Santa Clarita Valley.

As Land Advisors’ Santa Clarita Team discussed in prior blog posts, the Santa Clarita Valley is a highly desirable area for homeowners.  The Placerita Meadows site is well-positioned to offer its future residents all of the area’s regional benefits.  For example, Placerita Meadows is within walking distance to the Newhall Metrolink Station and several parks.  The property also offers the following:

  • Close proximity to several schools to include Old Orchard and Newhall Elementary Schools, Placerita Jr. High School and Hart High School
  • Within minutes of Interstate 5 (I-5), Highway 14 (SR-14) and Highway 126 (SR-126), residents of Placerita Meadows will enjoy convenient access to major employment centers, commercial, cultural, educational, and recreational areas throughout Southern California
  • Close proximity to shopping and entertainment at the Valencia Town Center, Stevenson Ranch Plaza and the Valencia Marketplace
  • Just minutes away from higher education facilities including: The Master’s College, College of the Canyons, Clarita Career College, and California Institute of the Arts

The Santa Clarita Valley (single family) lot inventory* is holding steady.  It currently stands at:  6,000 “Paper” Lots (unimproved lots that have entitlements), and 2,300 Semi-Finished Lots

*Source: Hanley Wood and Land Advisors Organization Research

 Source: Michel Faris, Marketing Consultant, (949) 852-8288 ext. 14

Santa Maria… Where are the builders?

A few weeks ago, the City of Santa Maria, Community Development Department (CDD) released its list of residential projects in the development process with the number of building permits issued by the City from July 1, 2011 through December 31, 2011.

As you can see from the chart below, the Santa Maria CDD shows there are 669 future single family dwelling units and 633 multifamily condominium units that are either approved or pending approval, for future development.

One new home community by the Towbes Group is actively selling new single family homes with floor plans ranging in size from 1,208 to 2,043 square feet. “Lavigna” is a well-amenitized gated community with a pool and recreational area.  

To date, Lavigna is the only new home product currently available within the City of Santa Maria.  But even with Lavigna, the ample lot inventory indicates that Santa Maria still has room for another builder. 

This leaves us scratching our heads…. When are all these units going to be built? And who is going to build them? 

Other News from the Central Coast

Via TheBusinessJournal.com: Visalia-based Mangano Homes, Inc. is developing the mixed-use Marsh Street Commons project in the heart of San Luis Obispo. Though the recession took a toll on the San Luis Obispo market as it did in the Valley, the Central Coast town has shown a certain tenacity in the past. Read complete article.

Via RENTV.com: The Village at Broad Street Family Apartments, a new 42-unit affordable housing project in San Luis Obispo, just celebrated its grand opening to the public. Developed by ROEM Corporation, the project is located at 2240 Emily St. Read complete article

The Village at Broad Street also recently held its grand opening for the new Fresh & Easy Neighborhood Market which turned out to be a huge success.

Source: Matt Power, Senior Marketing Consultant, (805) 845-2660

Giddy Up Fresno!

Hold on to your hat… New homebuilders who have lot inventory in the Fresno sub-market are now building again!  Fresno construction starts are UP since the same time last year. 

Major Player: Lennar HomesFresno and Clovis combined saw 219 new construction starts in the last quarter of 2011, (4Q 2010 saw only 161 starts).  Lennar Homes led the way with the most starts of any builder with 43.  Wilson Homes and Bonadelle Neighborhoods came in a distant second and third with 27 and 26 starts, respectively. The most active sub-market in 4Q 2011 was Clovis South with 66 starts (up from 44 starts in 4Q 2010).

Lennar also controls the most lot inventory of any builder in Fresno.  Of the 2,425 total vacant finished lots in the Fresno sub-market, 296 (12%) are owned by the public homebuilder as of January 2012.

Project of NoteBonadelle’s Bella Vista at Brighton is seeing impressive sales in its early phases.  The project’s success is breathing new life into the Millerton area sub-market as the first phase of the Brighton Master Plan.  The area boasts a ton of amenities including its location… a stones’ throw from Millerton Lake & Marina, Eagle Springs Golf & Country Club, and Table Mountain Casino.  With a natural setting and amenity package that is unrivaled in the greater Fresno area, Bonadelle is seeing buyers come out and purchase as a lifestyle choice and value play to living ‘in town.’  The Fresno Office of the Land Advisors Organization can bring you up to speed on this up-and-coming sub-market.

Home PricesThe latest data from Fiserv Case Shiller shows that national home prices are expected to grow at an annualized rate of 3.2% between 2011 and Q2 2016. BusinessInsider.com combed through Fiserv’s data and picked the best housing markets for the next five years…  Madera ranks No. 3 out of 15 on the list with anticipated annualized growth from 2011 – 2016 of +10.4%.

Multi-familyNew high-end apartments finally return to Fresno with an apartment complex called The Shires. The Penstar Group, a real estate development and construction company in Fresno, recently broke ground on the project and is looking to accommodate pent-up demand now that local rent rates have leveled off.

New Office Location! The Land Advisors’ Fresno office has relocated to 759 W. Alluvial Avenue, Suite 103, Fresno, CA 93711.  The new office phone number is: (559) 549-6326.  Stop by and say Hello!

Source: Mark Utman, Marketing Consultant, mobile: (949) 533-8284

Big Waves in the Central Coast

Just south of San Luis Obispo, along Central California’s picturesque coastline, lies the area known as the “Five Cities,” which includes the Cities of Arroyo Grande, Pismo Beach, Grover Beach, Oceano and Shell Beach. Wedged between the beach and Highway 101, this area is one of the most desirable and highly sought after among Central Coast homeowners. However, it is also extremely supply constrained in terms of residential land and new home inventory. Even though the Five Cities area does currently have a good amount of commercially zoned land, residential land opportunities have been harder to come by.

Five Cities Residential Lot Inventory (as of 2nd Quarter, 2011)*:

  • Vacant Developed Lots (Detached Product) = 200
  • Vacant Developed Lots (Attached Product) = 15
  • Future Lot Supply (Detached Product) = 406
  • Future Lot Supply (Attached Product) = 246

*Source: Metrostudy (Q2 ’11) and Land Advisors Organization Research

Source: Matt Power, Senior Marketing Consultant, (805) 845-2660