Thank you from Land Advisors Organization California Division!

LandAdvisorsCA1B2014TotalConsiderationClick on image to enlarge

 

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SAN DIEGO NEWSLETTER 3rd Quarter 2014

The San Diego market remains strong in Q3 2014.  Coastal prices for lots and homes are at or near record highs.  All indications are for continued strength for the foreseeable future based on strengthening job growth and low-interest rates.

New Home Trends

San Diego County currently has 57 actively selling communities with a majority (33%) of the units being offered as attached product. Of the 21 builders in the San Diego market, Standard Pacific and Shea Homes each have 9 actively selling communities making them the most active builders. Sales per month are averaging 2.74 per development. The average price per square foot is $285. Average square feet is 2,810.

SD Newsletter New Home TrendsTo view the entire San Diego Newsletter click on the following link: San Diego Newsletter 3rd Quarter 2014

Want to receive our San Diego Newsletter every quarter?  Email Katie Spitznagel at kspitznagel@landadvisors.com to be added to the distribution list.

 

Source: David Landes, Marketing Consultant, (858) 568-7428 ext.11 and Devin Jenkins, Marketing Consultant, (858) 568-7428 ext.13

 

Otay Ranch Property Sold

Moller plans 1,000 homes starting about 2016 overlooking east side of Otay Lake

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A section of property from Otay Ranch’s master-planned community — 13A — overlooking Otay Lakes in eastern Chula Vista has been sold for $21 million with up to 1,007 homes planned to start construction in about two years.

The buyer was Moller Otay Lakes Investment and the seller, Otay Village (San Diego) ASLI V. David Landes and Greg Vogel represented the seller and the buyers represented themselves.

Landes said once development details have been completed, construction can begin on both executive and workforce housing.

East of the Moller property is Village 13B, overseen by Baldwin & Sons. It is projected to include about 900 homes, a 200-room resort hotel and up to 20,000 square feet of commercial space.

Stephen Haase, Baldwin’s senior vice president for forward planning, said Village 13B likely will follow by one or two years the westerly village. Both sections are currently located in unincorporated land and require approval from the county, possibly next year.

Otay Ranch, started in the 1980s, is about half way to completion, Haase said, with about 15,000 more homes planned on several more villages.

“We know we have demand because of population and household growth,” Haase said, “but it will be more measured than in the 2000s.”

Article published April 24, 2014 by Roger Showley at U-T San Diego

http://www.utsandiego.com/news/2014/apr/24/otay-ranch-land-sale-moller/

For more information please contact David Landes at (858) 568-7428 or Greg Vogel at (480) 483-8100

San Diego County: A Shortage of Land in a Housing Market Screaming For Inventory

You don’t have to be a whiz at Economics 101 to understand the supply and demand imbalance affecting available housing and developable land in San Diego County.  You only need to drive around town or talk to neighbors in order to understand that the County is poised to experience a crises with respect to finding available housing to meet the demand.

According to the San Diego Association of Governments, the pace of residential building permits in San Diego County over the last five years is about half of what the region now needs each year (12,000 units needed annually).  In addition, only approximately 4,300 resale homes are currently on the market within San Diego County – a four year low according to numbers from the local Realtors Association.  A six month supply of housing inventory has historically been associated with a balance in supply and demand.

Currently, there is less than a two month supply of housing inventory in San Diego County!

Building Permit Chart

The scarcity of housing supply has fueled double-digit annual increases in the median price of homes sold in San Diego County in each of the past seven months, according to Data Quick based in La Jolla.  Based upon a recent per square footage analysis from the Greater San Diego Association of Realtors, Single Family Home prices have risen 14% from a year ago and Condominium/Townhouse resale values have skyrocketed 21%.

According to Data Quick, the 19% gain in the price of homes sold in March 2013 was the highest annual gain seen since January of 2005 (a few months before the peak in home values prior to the recently past recession).

Would-be buyers active in the resale market must compete with a significant percentage of “all cash” buyers (now accounting for approximately a third of all transactions).  Thus, there is amped up demand for new homes which once represented one sale for every four to six resales.  New home sales made up only 7% of total residential home sales in San Diego County in March 2013.  The drop in market share shows that fewer homes are being constructed and fewer acres of developable land are available for builders.

Future demand for housing may only increase as unemployment eases and low interest rates (now below 4%) jump start throngs of current renters who understand that their total monthly obligations for a condominium or townhome are likely now less then the rent they are paying each month.

As a result, LAO is now seeing unprecedented demand for both entitled and un-entitled subdivision land throughout the greater San Diego Metropolitan Area.

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

San Diego Housing Market Continues to Rebound

While job growth is the traditional driver of new home demand, the San Diego market recovery has been spurred on by primarily a dwindling of inventory, coupled with a continuation of government sponsored low interest rates. Analysts believe unsold inventory levels will remain relatively low for at least the next 12 to 18 months giving job growth in San Diego County an opportunity to rebound completely over the next few years. The increase in jobs is expected to give “new legs” to the current inventory depleted market rebound – giving us at least a three to five year upcycle.

Like many of the past housing market upcycles, overheated demand for subdivision land in the traditional location hotbeds, such as North Coastal San Diego County, have begun to spill over into communities located further east and inland – where there is a slightly greater number of available properties for sale.

SAN MARCOS SHOWING STRONG GROWTH
Available subdivision land in North San Diego County communities, especially San Marcos, is experiencing a significant increase in demand from builders. While we saw residential subdivision land typically trading for around $200,000 a finished lot in early 2012, we are now seeing in the first quarter of 2013 lots going as high as $285,000 a finished lot.

The finished lot value for residential subdivision land in San Marcos has increased in excess of 40% over the last year!

The City of San Marcos is undergoing significant upgrades with an expanding university town with over 14,000 full time students now at California State University at San Marcos (compared to just 9,722 students in 2011), the recent opening of the new “high technology” public high scool, and the remodel of San Marcos High School. The $180 million remodel project was one of the largest high school construction projects in the State of California and now boasts higher test scores than some of the public high schools located within the prestigious school districts situated along North Coastal San Diego County (south of Oceanside). Planned development of the approximately 1,000-unit University District mixed-use master plan beginning in 2014 (to be located near the CSU Campus and 78 Freeway) and the new linear mixed-use development plans running several blocks east and west (parallel to San Marcos Boulevard and the upscale Discovery Hills single family neighborhoods), will transform much of San Marcos beyond its “poor man’s Carlsbad” traditional reputation.

AREAS TO KEEP AN EYE ON
With the present market momentum continuing its course in the near term and moving towards complete restoration of the residential real estate values lost in San Diego County during the recession, Team San Diego sees the next generation of residential subdivision land opportunities in North San Diego County also migrating up the 15 Freeway (north of Escondido) to communities such as Bonsall (with outstanding schools) and the unincorporated Pala Mesa area (with the widening of Highway 76 / Mission Road – serving as a four lane expressway connecting Interstate 5 with Interstate 15).

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

California Division: 2012 Year in Review

LAO-CA Infographic 2012 YIR

Source: Tom Reimers, President, (949) 852-8288 x28

San Diego County’s Land Market On Its Own High Speed Train

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Unlike our Sacramento politicians’ boondoggle, San Diego’s land market has been picking up steam faster than a bullet train over the last few months.  According to reliable reports, over 2,400 new residential units were sold last year in San Diego County:

  • 1st Quarter 2012:   475 units sold
  • 2nd Quarter 2012:  680 units sold
  • 3rd Quarter 2012:   631 units sold
  • 4th Quarter 2012:   642 units sold

It is also important to note that approximately one third of the actively selling new home developments in 2012 consisted of condominiums or townhomes.  We expect that percentage to dramatically rise in the near term as monthly rental rates in many parts of the county now exceed monthly mortgage payments (i.e., P.I.T.I. and association dues), available at new construction condominium and townhouse communities.

Job Creation on the Rise

Evidence that this market momentum is growing can be seen in the sales volume reported for the traditionally slow 4th Quarter holiday season where sales exceeded the previous quarter and there was approximately a 30% increase in comparison to the 4th Quarter of 2011 (i.e., 494 sales reported in the 4th Quarter of 2011 versus 642 sales accounted for in the 4th Quarter of 2012).

Absorption Rates Expected to Increase

Although the average rate of absorptions of actively selling developments is still in the 2.0 sales a month range, a rapid decline in available new home supply is expected to boost absorption rates on remaining projects in the near term. For example, there were 113 actively selling new home developments in San Diego County during the 4th Quarter of 2011.  At the end of 2012, there were only 73 actively selling projects – that’s a 55% decline.  Approximately 60 projects sold out over the course of 2012, while only approximately 20 new projects entered the market during the same period of time.  Among the remaining new home developments in the County, approximately 2,233 units are left to either enter the market or currently remain unsold.  This equates to approximately an 11 month supply based upon a continuation of new home sales at a minimum of last year’s rate (i.e., approximately 2,428 annual sales reflecting a recovery beginning in the 2nd Quarter of 2012).  This bodes well for the health of the market going forward given 2012 sales did not pick up steam until the 2nd Quarter. Thus 2013 sales are expected to exceed last year’s total.  Historically, approximately a 12 month supply of unsold inventory (units offered for sale and remaining unsold), is considered approaching a supply/demand balance.

4thQ Actively Selling Projects

 Many housing analysts refer to the housing market rebound in San DiegoCounty and the nation as a “jobless recovery.”  While there is no question that the combination of a dwindling inventory and historically low interest rates have jump started the market, job creation in San Diego County over the last year has increased notably (approximately 29,000 annual net new jobs by year’s end in 2012 as estimated by Point Loma University Economist Lynn Reaser). This is a major factor which has largely flown under the radar due to the publicity related to a declining but relatively high unemployment rate (8.4%).

The Land Advisors Organization Team in San Diego is actively sourcing new land development and home building opportunities.  Call us today before this train is out of sight!

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

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

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

San Diego County Market Trends Update

The Coastal Counties of Southern California (including San Diego County), continue to garner attention as on the fast track to a near-term market recovery in the housing market.

The word on the street today in the real estate industry (locally and on Wall Street) is that San Diego County is suffering from a supply shortage of new construction rental housing.

A robust supply of capital appears to be anxiously awaiting the opportunity to finance the development of new multi-family housing in “A” and “B” locations throughout the County. Given the perceived shortage of new construction rentals, nine multi-family projects totaling over 2,600 units are currently in the planning pipeline.

Vacancy rates among new rental townhouse properties that are built and designed with for-sale housing features in the County are close to 100% occupancy, likely due to the ownership of housing design and upgraded features (direct access to two-car enclosed garages etc.), attracting the many foreclosure and short sale “refugees,” or casualties from the “Great Recession.”

The majority of vacant multi-family properties are currently offered in the range of $50,000 to $100,000 per door, depending upon the strength of location.

SAN DIEGO S-CURVE: In the new construction for-sale housing sector, the “San Diego S-Curve Submarket” has dominated new home sales in the County for the last 12 months.

The S-Curve Submarket can be described geographically as: Beginning with the Carmel Valley (Pacific Highlands Ranch, Carmel Country Highlands etc.), moving east along Highway 56; and then north through the Torrey Highlands/Westview High School area along Camino Del Sur up to and including the Del Sur Ranch, and then east through the 4S Ranch and Camino Del Norte Road.

New home communities located within the S-Curve submarket attract many of the white collar executives and engineers who are employed in the biotech and high-tech firms such as Qualcomm, Sony, Hewlett Packard, etc.  These consumers place a heavy premium on the stellar public schools serving this submarket.  They also find access to this area convenient through Interstates 5 and 15, and Highway 56.  The majority of subdivision land within this submarket accommodating new single family detached housing has been equivalent to values ranging between approximately $300,000 and $500,000 per finished lot, depending upon location and lot size.

North San Diego County: In North County large scale residential development remains to be developed in master plans within Del Sur Ranch, the West Robertson Ranch, and Pardee’s land holdings in the Pacific Highlands Ranch Area (east Carmel Valley). A number of sizeable land plays located within the North County perimeter submarkets (Bonsall, Escondido, Valley Center, Fallbrook, Pala Mesa, and the I-15 Corridor between Riverside and San Diego Counties) are awaiting a demand push for the relative large supply of lots and homes in the region.

East San Diego County: In East County, the Fanita Ranch in Santee has yet to be developed.  A steady supply of small bite-sized infill land opportunities are emerging.

South San Diego County: The South Bay is the “800-pound gorilla in the room” because it has thousands of residential units remaining to be developed within existing and proposed master planned communities in the East Chula Vista area and Otay Mesa area.  The Baldwins and extended family, McMillin Communities, and Home Fed are a few of the builders/developers with skin in the game.  In addition, the area between East Chula Vista and the Mexican border (Otay Mesa, Brown Field etc.) has the potential for a large volume of new housing development within the next five years given the revised zoning currently being considered by local government.

With the pending housing market recovery, the development of a vibrant downtown San Diego housing market will be in reach again, once the dust settles concerning local government redevelopment.

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

Downtown San Diego is Getting Ready to Play Ball Again

The opening of baseball season at Petco Park last week means that Downtown San Diego will be host to several million visitors over the next 6 months.  While the casual fan will be concentrating on the action occurring between the foul lines, they should also be aware of the changes in the real estate off the field in the surrounding neighborhoods.

While walking to Petco Park from one of the many surface parking lots in the surrounding East Village neighborhood, baseball fans will notice the abundance of new shopping and dining options.  The local San Diego County craft beer industry, recently touted as a job generator for the region, is responsible for spawning a new generation of connoisseurs looking for new places to sample the local product.  Savvy restaurateurs have capitalized on this demand and opened several new establishments focusing on providing the local beers.   After being empty for several years, a lot of the retail space is finally being occupied.  Many new retail shops and restaurants are in the process of opening, adding to the livability of the downtown housing market.

The construction of the Main Library, a 9-story domed building at the corner of Park and 11th is well under way and should anchor future development east of Petco Park.

The confluence of maturing neighborhoods as well as a general feeling that the residential resale condominium market is stabilizing is setting the foundation for new growth.

Investors are realizing the opportunities after being dormant for several years.  A few old projects have found lifelines with new financing, replacing onerous debt and allowing them to redesign their plans to meet the current economic climate.  The downtown skyline may soon see a few more projects breaking ground in the near future. While no one is predicting a second wave of development at the scale seen in the early 2000’s, it does portend a bright future over the next few years for the area.

Source: David Landes, Marketing Consultant, (858) 568-7428

Lots of Lumber in the Air in Coastal North San Diego Co.

With Super Bowl Sunday behind us, several homebuilders are kicking off new projects in anticipation of a strong spring selling season.  A quick drive around the North San Diego County submarket provides some optimism on the strength of the local building community….

  • In Carlsbad, Shea Homes is grading along Poinsettia Lane and Cassia Road, and Taylor Morrison is grading along Black Rail Road for new projects. Models should be under construction in the next few months.  Also on Black Rail, Warmington Homes is finishing a new phase of their Poinsettia Ridge project which should be available for move-in soon.
  • The Tides at Carlsbad, a 27-lot project along the freeway at Poinsettia Lane by K. Hovnanian is in full swing and selling.
  • The La Costa Condominiums, a large project being framed along La Costa Blvd., just east of El Camino Real is being developed by a local investment group to be held as rental condominiums.  Completion is expected by the end of the year.
  • Further south, The Bungalows project by Fieldstone Communities stands out.  From the freeway, you can see the unique red treated lumber being used for the framing.
  • Davidson Communities has two projects gearing up for release.  Arista at the Crosby is underway with models available to preview in the next few weeks, and Miraval at Torrey Highlands has also started moving dirt with an onsite sales trailer already open for previews.
  • Pulte Homes is also under construction in Torrey Highlands with their Latitude project.  Models should be open soon.

After a prolonged lull in new home construction, seeing so many new housing project starts in the market is very encouraging. Land prices are now stabilized in North San Diego County, and Land Advisors sees great values in the market for both finished lots and future entitlement deals.  Please check out our current listings for La Costa and The Lakes Above Rancho Santa Fe.

Source: David Landes, Marketing Consultant, (858) 568-7428

Strike a Pose. Condos are Back in Vogue in San Diego County

After seeing a huge boom in urban condominium development in the early to mid-2000’s, followed by a few years of hibernation, several suburban multi-family condominium projects are finally emerging in the marketplace, and several more are planned for actual development.  The combination of affordability and ideal infill locations is putting condominiums back on the radar screen for possible new home buyers.

Nearly every local builder has a current project in the works, either attached or detached product types.

  • Carlsbad is a hotspot for new home projects.  Shea Homes, Taylor Morrison, CityVentures and Brookfield Homes all have new communities breaking ground in the coming months, and D.R. Horton (53 Melrose), KB Home (Avellino) and Brookfield (Sago at the Foothills) are building out existing projects in this city.
  • San Marcos is also seeing an uptick of activity.  Colrich is starting to market their new project (Solaire) in the Old Creek master plan, and Lennar is building out Belmont at the top of San Elijo Hills.
  • Farther south, Davidson Communities is breaking ground on their new detached condominium site, (Arista) at The Crosby.
  • Shea Homes is also making news in Mission Valley with its new communities in the Civita master plan.

The communities of Otay Ranch and Olympic Pointe in Chula Vista will supply the San Diego South Bay with new product in the near term.

Future projects in North County, Mid County and South Bay currently in the planning stages ensure that condominiums will continue to supply lower priced homes throughout the region.

Source: David Landes, Marketing Consultant, (858) 568-7428

Lights… Flashing… Several High Profile Sites Trade Hands in SD County

The San Diego residential land market continues to plod along.  Most offerings are receiving strong interest as the building and development community looks for future inventory.  The general consensus is that the key indicators show stronger markets in the near future and everyone is filling their near-term pipeline (2012-2015).  Land Advisors recently completed the marketing campaign for The Lakes, a 248-lot project in the Rancho Santa Fe area.  The offering received strong interest from around the Nation.

Other notes from around the region…

  1. Meritage Homes made its first entry into the San Diego market with a purchase of 92 semi-finished lots in Oceanside, CA.  The property known as Hi Hope Ranch has a controversial past including lawsuits with the adjoining neighbor, Vista Unified School District, and a bankruptcy.  The property has been on the market for over a year and had been under contract with several builders.  The purchase price was reported to be just over $10 million.
  2. Another high profile Oceanside property also closed escrow.  MG Properties purchased Ocean Village, a “broken” condominium project near the Oceanside City Hall.  According to reports, none of the 33 units in the project were sold and the new owners will be leasing them out as apartments until the market firms.  The purchase price was $11.75 million which should allow the new owners ample room for profits, according to sources familiar with the project.
  3. Proving that you never know where the buyer will come from, a high profile 18-acre infill site in Mission Valley known as West End was purchased at a foreclosure auction last week.  The Buyer, Plaza del Sol Real Estate Trust is believed to be a church group looking for a new campus.  The site had been planned for 490 multi-family units but the project was never approved or developed due to the weak market in 2007-2010.  It is currently occupied by Mission Valley Inn and Frogs Gym.
  4. HOUSING:  According to the experts, foreclosures and defaults were down in September.  Hopefully this signals the start of an orderly process of unwinding the remaining problem properties still in the system, and tempers the uncertainty of prospective buyers:  www.nctimes.com/blogsnew/business/realside/article_fd80ea2f-890c-56bb-8231-d5d4231b30fa.html
  5. Look for new multi-family listings from the San Diego office of Land Advisors Organization in the next few weeks.
  6. Redevelopment of an eyesore in Solana Beach is in the works after American Assets bought a former trailer park on Coast Highway.  The 1.76-acre site at 329 S. Coast Highway finally traded hands at 63% of the original listing price after being on the market for several months.  The Buyer plans to redevelop the site for commercial/residential use.

Source: David Landes, Senior Marketing Consultant, (858) 568-7428

San Diego County Land Prices Pushing UPWARD

Residential land prices in San Diego County are trending up!  Check out the San Diego Business Journal article this week, where Land Advisors’ Senior Marketing Consultant, David Landes, discusses the County’s residential (single family & multi-family) land trends. READ HERE: San Diego Business Journal Article

Public and private homebuilders and developers are showing strong interest in big residential projects throughout San Diego County.  Land Advisors is receiving a large number of inquiries from around the U.S. and abroad for the Lakes above Rancho Santa Fe, a 248-lot project in the Santa Fe Valley.

Heard on the Street: Davidson Communities, who has been building homes in the Carmel Valley corridor for nearly 30 years, is rumored to be under contract to sell a portion of its Fairbanks Country Villa project.

The San Diego South Bay market (Chula Vista) is starting to heat up.  Builders and developers are working on future residential projects in anticipation of an economic turn.

New home projects in Coastal San Diego are doing well.  City Ventures and K. Hovnanian have recently started building communities.  Look for sales flags in Leucadia and Carlsbad.

Multi-family product remains hot.  Watch for a few cities to start considering re-zoning land from industrial and commercial use to residential use.

Redevelopment funds: Builders and developers need to continue to pressure their politicians to fight for redevelopment funds which are threatened by Sacramento. This will have a big effect on future downtown San Diego development and potential relocation of the San Diego Chargers NFL team.

Source: David Landes, Senior Marketing Consultant, (858) 568-7428

Still Alive in San Diego

San Diego Marketing Consultant, David Landes, (858) 568-7428 had this to report on the San Diego County land sub-market today:

  • Improved lots are still in strong demand. 
  • Carlsbad continues to supply most of the new product with projects in the master plans of The Foothills, La Costa Oaks, La Costa Greens and La Costa Ridge.  DR Horton, KHovnanian, Standard Pacific, Pulte, Davidson, Taylor Morrison, William Lyon, Colrich and Cornerstone are all active in this market.
  • New projects in San Elijo Hills are also cropping up.  Lennar is under construction on a new attached project and another large, public builder is currently under contract on some of the remaining lots at the top of the hill.
  • The apartment groups continue to be aggressive.  Several projects are under contract along the 78 Corridor from Vista through San Marcos.
  • Several improved lot offerings are in the works along the 56 Corridor up through Del Sur and Rancho Santa Fe.  Look for transactions by year end.