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
While the land market in the Bay Area has continued to improve and in many primary in-fill areas the market is back within 20% of peak values, the secondary and tertiary markets are still bouncing along the bottom with land values that are typically only 20% of peak values. This seems to be an unsustainable condition. Back in 2003 or 2004 when land prices in the Bay Area were approximately where they are today, land in outlying markets (think the cities of Brentwood and Gilroy, for example) was consistently trading for 2 to 4 times what it is trading for today.
So it seems that the market is at an inflection point, either the 2,000+ units per year that all the public and large private homebuilders combined in Northern California need to produce to cover their fixed costs are going to come in the form of 50 lot and smaller infill developments (Door #1), or the outlying Bay Area land markets are set for a major rebound. Maybe it’s time to see consider what kind of deals you can find behind Door #2.