It seems as though the Fresno residential land market is revisiting its past… residential raw land is currently selling for prices paid back in 2000. During the market peak five or six years ago, unimproved vacant land in “A” locations sold in Fresno for $300,000 per acre. Today it’s going for prices ranging from $60,000 to $85,000 per acre.
Local homebuilders are in the early stages of reloading their land inventory. Housing Capital is playing a huge part, as the lender is one of a few banks enthusiastic to offer A, D and C loans.
Recent Land Deal: Homebuilders are buying un-entitled dirt again but in smaller bites. A local builder just purchased 10 acres of unimproved land in the heart of northeastern Fresno.
Fresno local homebuilder Granville Homes is knocking the dust off of Westlake, a master planned community in west central Fresno that has been “mothballed” for the last five years. The 430-acre project is now scheduled to break ground sometime in 2012. Westlake is a promising master plan by a talented local builder. This could spur a land rush from builders and developers alike looking to ride the coattails of this new community now anchoring West Fresno.
According to Fiserv, a financial analytics company, Madera is on the mend… Fiserv identified Madera (about 25 miles northwest of Fresno) as a “winner” in a long list of sub-markets around the U.S. in terms of housing valuations. The Chicago Tribune article states that home values across the Nation are anticipated to decrease in the coming year, but that home values in the Madera area will gain 15.5%!
Fresh from the FresnoBee.com News Blog… the number of foreclosures in the Central Valley fell during the third quarter of this year compared to the same time a year ago. However, building permits are way down. In Fresno, only 19 single-family permits were pulled in September compared to 113 in August, and 120 permits a year ago at the same time. …Adapting to changing demographics and consumers’ needs, Lennar Homes rolls out a new model in the Central Valley.
So, despite Fresno residential land values resetting to decade lows, Land Advisors is looking to blast a few gigawatts into the market with two large Fresno area listings in early November – stay tuned!
Source: Mark Utman, Marketing Consultant, (559) 449-4500