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

Lowered Development Fees and More Jobs Headed to the Northern Central Valley

Earlier this year, the City of Modesto lowered many of its development fees, including the one-time charges that pay for roads and other public facilities.  The City is lowering capital facility fees by 22% to 45% for residential and commercial projects. Read article: Modesto Bee

ECONOMIC IMPACT:  The University of California, Merced began initial operations in July 2000 and has since contributed approximately $650 million to the San Joaquin Valley economy.  With over 5,000 students currently enrolled, the City of Merced is becoming a hot spot for student housing development, and is anticipating more jobs in the horizon. http://ucmercednews.blogspot.com/2011/09/university-of-california-merced-has.html

Many residents of the Central Valley are looking forward to progress with construction of the proposed high-speed rail, which was approved in 2008.  This mega project is surrounded by loads of controversy, but is estimated to bring approximately new 83,000 jobs to the Central Valley. Read article: Central Valley Business Journal

EMPLOYMENT FACTOR:   As is the case in most homebuilding sub-markets across the country, homebuilders and developers in the Central Valley are eagerly awaiting decreased unemployment and increased consumer confidence, in hopes of jump starting new home sales.

California’s unemployment rate increased to 12.1% in August. However, with the summer growing season in full swing and harvesting of some crops underway, the jobless rates in the Central Valley dipped a bit in August.  Read article: Central Valley Business Times

Here are the August 2011 Central Valley unemployment rates, followed by those from July 2011, which are in parentheses. All are estimates: (Source: Central Valley Business Times)

  • Fresno County, 15.8%; (16.7%)
  • Kern County, 14.4%; (15.5%)
  • Kings County, 15.3%; (16.1%)
  • Madera County, 14.4%; (15.4%)
  • Merced County, 17.5%; (18.7%)
  • San Joaquin County, 16.1%; (17.5%)
  • Stanislaus County, 16.0%; (17.5%)
  • Tulare County, 15.7%; (16.6%)

Source: RJ Radler, Senior Marketing Consultant, (916) 784-3329 x12