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
With Thanksgiving behind us and Christmas just around the corner, holiday shopping has officially started. For housing in the Sacramento region, homebuyers started shopping early and are likely to continue through the New Year. October 2011 showed a 19.5% year to year increase in volume. The reason? Home prices are continuing to fall…
San Diego-based DataQuick reported that the average sale price of homes in the Sacramento four-county region declined 9.5% from a year ago. Although, the decline is not because of falling home values… It appears as though more buyers are flocking to less expensive homes, which is influencing the downward trend in average home price.
The number of months of new home supply on the market is down to 4.2, and even as little as 2.0 in some stronger markets.
The New Home Company purchased a 128-lot subdivision in the master planned community, The Parkway in Folsom. All but 44 of the lots were “mostly improved.” Construction on the new homes within the subdivision is scheduled to begin in March 2012.
Most of the distressed finished lot deals have already sold in the Sacramento Region, leaving very few for opportunistic builders and investors.
The heavy multi-family activity in the San Francisco Bay Area has not yet moved east to reach Sacramento. Multi-family builders are currently obtaining $1.00 to $1.20 per square foot revenues, which is not enough to justify construction for new product in the Sacramento region.
Source: Jim Radler, Senior Marketing Consultant, (916) 784-3329 x11
Located northeast of Sacramento, the City of Folsom is just south of Folsom Lake in Northern California. Folsom is currently the most desirable sub-market in the Sacramento Region for homebuilders, where average sales prices of homes are now close to DOUBLE those of the overall region.
Folsom Fast Facts:
Residential land north of U.S. Highway 50 traded for $1 million per acre (raw) at the peak of the market in 2005.
At the current absorption pace, Folsom will be out of finished lots by 2014/2015.
Folsom enjoys a 5.7% unemployment rate (current California unemployment is 12%), and thus has minimal foreclosure activity.
Folsom’s schools consistently rank in the upper echelon of school districts not only in the region but in the entire state.
Landmark Folsom REO Property Available for Sale:
Land Advisors Organization is currently marketing Carpenter Ranch – a 1,019-acre master planned community located in Folsom’s Sphere of Influence in Sacramento County.
The property rests along 1.5 miles of Highway 50, and was recently entitled for 2,263 residential units and over 3 million square feet of commercial uses. Previous investment in the land totals over $100 million.
Source: Jim Radler, Senior Marketing Consultant, at (916) 784-3329 ext. 11.