California Dreamin’

Seems like the herd is gathering steam again in the Sacramento region and in the greater California market.  That herd I am talking about are the homebuilders.  It’s funny when a couple of builder deals get completed, it draws in the rest of the pack like a magnet and we are starting to see that in and around Sacramento.  DR Horton just closed on a deal in Folsom, Standard Pacific picked up about 100 lots in Rocklin and now the rest of the builders are combing the market looking for that next deal.  This is great news not only for the industry, but for developers and land owners.  If the new home construction numbers continue like they are in the Sacramento region, finished lots in core markets will be long gone by next year. FULL STORY

Source: Ryan Long, Senior Marketing Consultant, (916) 784-3329 ext. 16

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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

New 360 Acre Development Coming to Monterey County

City of Del Rey Oaks and Brandenburg Properties are preparing to team up to develop 360 acres of undeveloped Fort Ord land.  The City would like to see a low-density residential development and a hotel with condominium units and they would like to see “green, sustainable” development, including the use of cisterns to help with water supplies.  The Del Rey Oaks land is generally located north of South Boundary Road and east of General Jim Moore Boulevard.  Part of the project lies next to Fort Ord acreage the city of Monterey has planned for eventual development. FULL STORY

New Monterey County listing hits LAO

The Central Coast Team of the Land Advisors Organization is pleased to present Parcels D & E featuring 13.51 multi-family acres for ±378 apartment units.  The subject sites are located in Monterey County along scenic U.S. Highway 101, within the northerly reach of California’s Central Coast and in the heart of the famed Salinas Valley. Soledad is known for its natural beauty, moderate climate, and abundant agricultural products. Soledad is now home to more than 17,000 residents with a mix of early 20th century architecture with a charming historic downtown commercial district and vibrant new residential neighborhoods.

Contact: Matt Power at (805) 845-2660 or Jim Radler at (916) 784-3329 for more information on Parcels D & E.

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

San Diego: How Banks Helped the Housing Market Get Back On Its Feet

“Shadow Inventory” was a dirty word for most of the past recession with respect to the housing market.  In general terms, it meant there was a large number of homes in foreclosure or soon to be foreclosed upon, which would flood the market and drive down home prices, and keep the housing market on its heels for years to come.  While no one will argue that the sheer volume of foreclosures nationwide and in Southern California is substantial, the threat of flooding the market has not materialized. 

 In San Diego County, as in most areas of Southern California, the Banks were smart and only released foreclosures to the marketplace in measured increments, so as to attract interest in inventory at reduced prices without flooding the market.  San Diego County foreclosures have recently been reported to be down 51% in comparison to a year ago.  As a result, investment groups interested in purchasing large quantities of lower priced foreclosure properties for the strong rental market have helped generate an overall market craving in San Diego County for relatively low-priced housing (generally posture below approximately $500,000).  Brokers active within marketplaces sporting significant volumes of housing priced below $500,000 report multiple offers for any available inventory, often driving up prices.  The average price of new and existing housing sold last month in San Diego County ($335,500), accounted for a 1.7% increase over the average price of homes sold in June of 2011.  The total sales volume in the resale market county-wide for single family detached homes through the first half of 2011 represents almost a 10% increase over the first six months of last year.

 

The market recovery for low-priced housing, coupled with long-standing reduced interest rates, is very slowly beginning to work itself up the price ladder of housing throughout San Diego County.   For example, in higher priced submarkets such as the North County Coastal Area, rates of absorption for new home developments have grown from an average of one sale per month per project last year, to approximately two sales per month in 2012. 

 Although generation of new jobs in San Diego County is headed in the right direction, the slow pace of employment growth has been the major force preventing a rapid recovery in the housing market.  With the potential cut back in government defense spending in San Diego County next year, the pace of job growth is not expected to pick up in the very near term.  However, continued low levels of housing inventory (the number of homes listed for sale at the end of the 1st Quarter of 2012 fell to its lowest level in nearly three years), government maintenance of low interest rates, and continued growth in demand for rental housing is expected to continue to fuel the housing market recovery, but at a continued gradual rate of growth.  Most economic forecasters are predicting housing appreciation in San Diego County in the near term to range between approximately 2% and 3% annually.  The moderate pace of market recovery may be a blessing in disguise; as a more gradual velocity in recovery will give the market its legs for more sustained growth; in contrast to the rapid inflation run-ups of past market cycles which eventually lead to faster boom to bust corrections. 

 Down the road, this bona fide housing recovery at the bottom of the “food chain” so to speak, will likely be looked upon as the flash point which signaled the beginning of the market recovery in the housing market in San Diego County.

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