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

Advertisements

West Riverside County: 4 BIG Deals

Several large residential land deals (consisting of +500 lots) have closed in West Riverside County in 2011. 

Land Advisors represented the buyers and the sellers in three of the most notable transactions: McSweeny Farms (1,330 lots in Hemet), Summerwind Ranch (3,683 lots in Calimesa) and Underwood (543 lots in Menifee).  Another large completed deal to note is Stoneridge with 2,200 lots in Unincorporated Riverside County.

Public homebuilders are currently refraining from purchasing more residential lots within the County’s secondary and tertiary markets of San Jacinto, Hemet and Perris, as finished lot values in these sub-markets are off 55-65% from peak values. 

The lot values in and around the primary market of Corona are currently off peak values by 35%.

Richmond American Homes (MDC), Beazer Homes (BZH), D.R. Horton (DHI), and Meritage Homes (MTH) have completed transactions in the West Riverside County sub-market during 2011.  However, private investors have been more aggressive in seizing opportunities, and are proving to be more active buyers.

Source: Jeff Spindler, Founding Principal (949) 852-8288 x12 and Mitch Casillas, Marketing Consultant (949) 852-8288 x23

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.