Land Advisors’ Northern California Team is proud to announce that it recently closed 507 single family lots in finished condition in the northern part of the City of Merced, a project known as Bellevue Ranch West. The buyer is a long-time local farming family who plans to hold the asset as a long-term investment.
Although little building activity is occurring in Merced County at the moment, K. Hovnanian Homes is currently open and selling homes in one project. The project, known as Eagles Ridge, is an active adult community in the Santa Nella market.
Despite the fact that Merced County new home closings are projected to hit a post-crash low volume in 2012 (off 98.9% from peak new home closing volume), year-to-date home prices are starting to rebound for regular re-sale and REO transactions with each up 2.47% and 1.96% respectively from their troughs. In addition, foreclosure sales (borrower-to-lender) are down 75.13% year-to-date from the 2008 peak. REO (bank-to-new-buyer) sales are down 71.38% from their peak in 2009. Our interpretation is this represents a positive sign that the overall Merced County housing market is healing – slowly but surely. (Source: Housing Intelligence Pro by Hanley Wood)
BIG LISTING: As part of a recent major lender-owned land listing for the California Division of the Land Advisors Organization, the Land Advisors Northern California Team covering the North Central Valley is actively looking for buyers for six assets in the bank’s portfolio. Collectively, the listed assets include 479 single family homes in varying stages of development. These asset sales represent the last few remaining bank-owned deals in the North Central Valley. They should attract multiple investors and likely a few builders as the chance to buy lots well below replacement cost dwindle statewide.
- Atwater: Stonecreek – 129 Single Family Detached Lots in Finished Condition;
- Winton: Winfield Station – 22 Single Family Detached Lots in Finished Condition;
- Modesto: Thomas Terrace – 9 Single Family Detached Lots in Finished Condition;
- Ceres: Bing Cherry Estates – 39 Single Family Detached Lots in Finished Condition;
- Merced: Amberly Court – 162 Single Family Detached Lots in Rough Graded Condition (on 15.93 acres); and
- Sage Creek – 118 Single Family Detached Lots in Rough Graded Condition (on 13.55 acres).
Other North Central Valley Updates: San Joaquin County is experiencing improved new home sales in the towns of Mountain House, Manteca, and Lathrop. New home projects are getting started in Stanislaus County, with two in Oakdale and one in Patterson.
Slow and steady as they are… all signs of building activity in the North Central Valley show that we are on our way to recovery!