In the West San Bernardino County sub-market, only three public homebuilders are currently in escrow. As banks have worked through a majority of their REO inventory, the residential land deal flow has slowed.
Large land plays are making some headway in the Inland Empire, as indicated by the recent sale of Summerwind Ranch for $33.5 million in Calimesa (represented by Land Advisors Organization), which sits on the Riverside/San Bernardino County border.
However, apartment developers are starting to branch out from the core coastal markets and look for worthwhile deals in the better performing sub-markets of San Bernardino County such as Rancho Cucamonga, Chino, Chino Hills, and Eastvale.
Source: Winn Galloway (949) 852-8288 x27, Marketing Consultant covering the West San Bernardino County sub-market
Northern California Report:
- Market experiencing more downward pressure on pricing.
- New home sales are poor.
- Most public homebuilders are not looking in the Sacramento region at this time.
- The Sacramento Region sub-market (including Sacramento, Placer and El Dorado Counties) has an abundance of developable, yet unavailable, residential lots. Most of the finished lots in the area are controlled by the public homebuilders. Very few are distressed.
Glimpse of light: A few of the Bay Area secondary markets (a.k.a. the “commuter” markets), particularly the community of Mountain House, are starting to show signs of a comeback, which hasn’t happened in roughly 4 years.
Source: Jim Radler (916) 784-3329 x11, Senior Marketing Consultant for the Sacramento region sub-market
The word is that most public homebuilders are steering clear of the Antelope Valley (northeast Los Angeles County) these days. One large “public” is now on the search for deals in and around Palmdale and Lancaster.
Private investors are the more active buyers and sellers in the “AV” right now. They’re cautious in their approach, only taking shots at “screaming” deals, with little risk. Very few bank owned properties are left at this point.
The western portions of Palmdale and Lancaster are known as the higher quality investment areas. However, no clear “hot spots” are currently apparent.
Source: Marketing Consultant, Michel Faris (949) 852-8288 x14
A brief Q&A this morning with Land Advisors’ Urban Infill Marketing Consultant, Tim Barden, revealed the following:
- Demand for multi-family apartment sites in and around the L.A. Basin is WAY up!
- Hottest selling areas include Hollywood, Pasadena, L.A.’s Westside, and the South San Fernando Valley
- Existing Class A apartment buildings are selling at record low cap rates
- Every multi-family developer seems to be trying to get a piece of the action
- Commentary: With talk of another economic “double-dip,” is multi-family experiencing the same micro-bubble that was seen after the fall of the housing market in ’06/’07?
CHECK IT OUT: New Exclusive Listing – 173 Units – Pasadena; “Hudson & Walnut” and “El Molino & Walnut”. Click here for more info: http://bit.ly/q0xnrS