A Premier In-Fill Development Opportunity Featuring 167 Acres in Oakland Trades Hands in a Red-Hot Bay Area Land Market

May 9, 2014 (Irvine, California) – The California Division of the Land Advisors Organization is pleased to announce the closing of Oak Knoll, a premier hillside development opportunity featuring 167 acres in Oakland, California. The asset sale was brokered on behalf of LV Oak Knoll LLC, the Seller, by Terry Ruckle and Steve Reilly of the Land Advisors Organization.

Land Advisors generated 20 offers for the property, evidence of intense competition for Bay Area residential development projects.

The Oak Knoll property is unique in the market due to its ability to provide desperately-needed new single-family homes, significant natural open space, trails and parks, and direct access to Interstate 580 at Mountain Boulevard.  With its in-fill location, the Oak Knoll property is well-positioned to provide a wide range of housing options to the East Bay Area.  Oak Knoll offers one of the rarest residential development opportunities remaining in the Western United States.

For more information about Oak Knoll, please contact Terry Ruckle, Co-Founding Principal and Oak Knoll Marketing Team Lead, at truckle@landadvisors.com or Steve Reilly, Senior Marketing Consultant, at sreilly@landadvisors.com.  For more information about Land Advisors Organization, please visit http://www.landadvisors.com or contact Tom Reimers at (949) 852-8288 ext. 28.

About Land Advisors Organization:

Land Advisors Organization specializes in innovative land brokerage through deep market insight and unparalleled client relationships. With an exclusive focus on land, Land Advisors Organization integrates current comprehensive information, cutting-edge technology and geographically specialized professionals to help our clients identify and capitalize on valuable opportunities in all kinds of economic environments.  The Land Advisors Organization employs a true collaborative brokerage model with offices located throughout Arizona, California, Florida, Idaho, Nevada, New Mexico, Utah and Texas.

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Bay Area – Land Prices Have Gone Through the Roof!

Since the 2011 trough in land prices, the worst markets in the Bay Area have seen a significant increase in lot prices – an average of about 44%. As the available land in the core markets has dwindled, builders have turned to the tertiary markets that were once off the radar. This trend will likely continue in areas such as the Central Valley and Monterey and Sonoma Counties. Although they may be considered unbuildable zones today, they will see a similar lot appreciation over the next few years as builders move farther out of the core to build.

Lot Price Appreciation for a 5,000 SF lot

Oakley 53.33%
Antioch 53.13%
Pittsburg 51.52%
Martinez 51.11%
Brentwood 48.57%
Livermore 46.67%
Mountain View 46.67%
Sunnyvale 46.43%
Hayward 46.15%
San Jose 45.45%
Fremont 40.00%
Hercules 37.14%
Concord 33.93%
Gilroy 33.33%
Dublin 30.00%

Source: Steve Reilly, Marketing Consultant, (925) 368-3128

NorCal – Where’s the Inventory?

I keep reading that re-sale inventory is at historic lows and there are bidding wars on the small amount of re-sales that are sprinkled throughout the marketplace. This is good news on several fronts. The first being that pricing for both new home and re-sales are rising….and quickly I might add. The second is that people who are getting back into the market for a home are being beat out by all cash, quick close investors on re-sale inventory and therefore being directed to find homes from the builders. Finally, the builders themselves are running low on ready to build lots (inventory) and scrambling to backfill the demand which equates to land prices that are skyrocketing (30%+ increases in a matter of weeks depending on the market). Let’s hope that we find a normalcy in the market so we can enjoy the bull market ride in housing and land.

Links:
http://www.calculatedriskblog.com/2013/03/analysts-increase-2013-house-price.html#uh9KivlxCKGG4QDr.99
http://www.sacbee.com/2013/03/26/5292593/bidding-wars-breaking-out-in-sacramentos.html

Source: Ryan Long, Senior Marketing Consultant, (916) 784-3329 ext. 16

New Home Sales in Santa Barbara and San Luis Obispo County Pick Up The Pace!

New Home Closings in San Luis Obispo Climb According to Newest Data, Prices Steady

Posted on: Mar 07, 2013 07:33:55 AM

In the San Luis Obispo, CA market, closings of new homes jumped year-over-year in December, and the increase was greater than November 2012. New home closings moved from 12 a year earlier to 52 after the figure moved from eight in November 2011 to 15 in November 2012.

A total of 154 new homes were sold during the 12 months that ended in December, up from 114 for the year that ended in November.

New home closings were 52 out of 420 total closings, making up 12.4%. This is up on a percentage basis from 12 of 366 a year earlier. Following a year-over-year increase in November, closings of new and existing homes also rose year-over-year in December.

Pricing and Mortgage Trends
The average per-unit price of new homes was $442,185 in December 2012, unchanged from a year ago. This came after a 5.0% decline in November from a year earlier.

Average mortgage size on new homes fell from $339,237 to $287,378. Average mortgage size on new homes went from $290,161 in November 2011 to $379,406 in November 2012. For new home closings, the percentage of the sale price that was being financed slid 11.7 percentage points year-over-year to 65.0% in December 2012. In November 2012, there was a 23.3 percentage point surge from a year earlier.

Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached closings made up six of 52 new home closings after accounting for one of 12 a year earlier. Meanwhile, single-family homes made up 46 of 52 new home closings after making up 11 of 12 a year earlier.

The average unit size of newly sold homes fell from 2,069 square feet a year earlier to 1,767 square feet.

Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in December, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 23.1% of closings, below 48.3% a year earlier. The percentage of existing home closings involving foreclosures dipped to 9.5% in December from 17.8% a year earlier while REO closings as a percentage of existing home closings declined to 13.6% from 30.5% a year earlier.

Source: Housing Intelligence

New Home Sales and Prices Both Increase in Santa Barbara According to Recent Data

Posted on: Mar 07, 2013 07:34:03 AM

The Santa Barbara, CA market saw a rise in new home closings in December year-over-year, and the increase was greater than November 2012. New home closings moved from six a year earlier to 40 after the figure moved from nine in November 2011 to 19 in November 2012.

A total of 192 new homes were sold during the 12 months that ended in December, up from 158 for the year that ended in November.

New home closings were 40 of the 419 total closings, up on a percentage basis from six of 429 a year earlier. Following a year-over-year rise in November, closings of new and existing homes slipped year-over-year in December.

Pricing and Mortgage Trends
The average per-unit price of new homes was $642,463 in December 2012, up from $635,250 a year ago. This followed a 34.9% decline in November from a year earlier.

Average mortgage size on new homes increased to $434,179 from $417,104 last year. It went from $353,984 to $350,950 from November 2011 to November 2012. Of the overall sale price, the percentage that was being financed rose 1.9 percentage points year-over-year to 67.6% in December 2012. This was another boost after November 2012 when there was a 28.1 percentage point rise from a year earlier.

Other Market Trends
As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen. Single-family home closings made up 39 of 40 new home closings after accounting for five of six a year earlier. Meanwhile, attached units made up one of 40 new home closings after making up one of six closings a year earlier.

Foreclosures and real estate owned (REO) closings fell in December from a year earlier, but remained a drag on the market. Together, foreclosures plus REO closings made up 30.6% of existing home closings, down from 49.6% a year earlier. The percentage of existing home closings involving foreclosures dropped to 11.3% in December from 26.0% a year earlier while REO closings as a percentage of existing home closings fell to 19.3% from 23.6% a year earlier.

Source: Housing Intelligence

Source: Matt Power, Senior Marketing Consultant, (805) 845.2660

Bay Area: Back to the future—Are condos the new apartments???

I have to admit it…I was dead wrong. I thought (like many others) that condos were going to be dead for a while.  Many people really don’t want to live in a condo but they end up “settling” for them because of the relative affordability closer to job bases. As prices in the Bay Area have resumed their pre-collapse march up at 10+% per year, condos are making resurgence.

Given the resurgence in attached for-sale product in the Bay Area, the “highest and best” use has now probably switched back to condos from apartments.  And it probably won’t be long before we see the reverse of what happened a few years ago where condo sites were re-entitled to apartment deals.  Now we’ll start seeing apartment sites re-entitled to townhomes and condos. If you have one of these sites feel free to give us a call to help evaluate all the options in the fast changing market.  There are many factors to consider in making this kind of decision; our in-fill experts can help you juggle all the factors to position your site for maximum sales proceeds!

http://www.contracostatimes.com/business/ci_22613042/bay-area-condos-tight-supply-has-buyers-scrambling.html

Source: Steve Reilly, Marketing Consultant, (925) 368-3128

FRESNO: Fat Tuesday, Skinny Inventory

Now is the time for homebuilders to open their stalled legacy projects. Beazer Homes recently closed out The Groves at Sunnyside Point, their neighborhood adjacent to KB Home’s Olive Lane new home community located in Sunnyside Fresno. New homebuilders will not have to compete as hard for new home buyers shopping the area.

HOME PRICES
According to the California Association of Realtors, Fresno County home prices increased 15.3%, but sales were down 22.2% from the previous year. Madera County saw prices increase 36.1%, but sales were down 24.4% from the previous year. However, sales are looking up with a 19.2% increase in sales from the previous month in Madera County.

December 2012 County Sales and Price Activity

Median Sold Price of Existing Single-Family Homes

# of Sales

County

12-Dec

12-Nov

11-Dec

MTM% Chg

YTY% Chg

MTM% Chg

YTY% Chg

Fresno

$157,620

$148,240

$136,740

6.3%

15.3%

-2.5%

-22.2%

Madera

$144,290

$113,330

$106,000

27.3%

36.1%

19.2%

-24.4%

Source: California Association of Realtors

UNSOLD INVENTORY & TIME ON MARKET
According to Land Advisors Organization research, unsold inventory in Fresno County decreased 7.3% from the previous year and Madera County decreased 47.4% from the previous year. The median time on market decreased 24.1% in Fresno County and increased 25.4% in Madera County from the previous year.

December 2012 County Unsold Inventory and Time on Market

Unsold Inventory Index

Median Time on Market

County

12-Dec

12-Nov

11-Dec

12-Dec

12-Nov

11-Dec

Fresno

3.8 Months

4.2 Months

4.1 Months

26.4 Days

26.3 Days

34.8 Days

Madera

2 Months

3.2 Months

3.8 Months

64.6 Days

27.9 Days

51.5 Days

Source: California Association of Realtors

FINISHED LOT INVENTORY
Home Buyer demand is escalating fast.  Quality resale inventory is sparse.  If you own 10 or more acres of land in the path of development, you should be at the City processing a subdivision map faster than Mardi Gras beads flying from a balcony overlooking Bourbon Street.  If you are not familiar with the entitlement process please contact me so I can help get you started.

NEW DEVELOPMENT
Fresno developers plan medical campus at Millerton Lake. FULL STORY

Source: Mark Utman, Marketing Consultant, (559) 549-6326

California Division: 2012 Year in Review

LAO-CA Infographic 2012 YIR

Source: Tom Reimers, President, (949) 852-8288 x28

Fresno County Approved TTM Lots Going Once, Twice…

Land Advisors Organization is pleased to say SHOUT! the handful of approved tentative tract maps (TTM) available for sale within Clovis’ city limits have been receiving multiple offers.  The City of Fresno is next to follow where lots previously located in “B” and “C” locations are quickly becoming the new “A” lots.   The time is now for developers and homebuilders to pounce on every reasonably priced TTM.  Call LAO’s Fresno office at (559) 549-6326 for a current list of available inventory.

POLL:  

HOME SALES:

  • Distressed homes sales are on the decline. FULL STORY
  • Home prices are up 18% from a year ago. FULL STORY

NEW DEVELOPMENTS: On November 7, 2012 The Madera County Board of Supervisors re-approved 4-0 the 1,656-acre, 5,190-home Tesoro Viejo planned urban community proposed by McCaffrey Group.

Source: Mark Utman, Marketing Consultant, (559) 549-6326

Central Coast Sales are Climbing!

The Central Coast’s South Santa Barbara County submarket, which includes Carpinteria, Santa Barbara and Goleta, has seen a surge in sales volume to date with 199 closed transactions this past October.  Sales volume is WAY up and our trend line has now officially bounced above our 2005 sales volume numbers.  With all of this activity our current median price of $620,000 has also bumped up 2% from this time last year leaving us with one question … Where is the future inventory going to come from?  With thinning resale opportunities and virtually no foreclosed homes on the market prices are sure to jump again over the next six months. 

So what does this mean for Central Coast home builders looking for land opportunities along the Central Coast?  Finding the right land position has traditionally been very difficult in this supply constrained market so if you are a home builder looking to build along the Central Coast, please contact Matt Power at Land Advisors Organization’s Santa Barbara office at 805.845.2660.

Source: Matt Power, Senior Marketing Consultant, (805) 845.2660

WANTED: FRESNO LAND DEVELOPERS

According to Fresno real estate blogger, BoNhai Lee, the City of Fresno says ±16,000 acres of land remain for housing development.  With that being said, Fresno is in need of land developers to entitle and process new tentative tract maps.

Land Advisors Organization’s Fresno office is happy to announce the San Joaquin Valley is (finally!) coming alive in “A” locations.  Builders are complaining there are not enough improved lots to choose from in Clovis and northeast Fresno.

POLL: 

RECENT CLOSINGS (September 2012): 

  • An investor purchased 36 finished lots in Madera (brokered by LAO)
  • A farmer purchased ±37 unimproved acres in Clovis (brokered by LAO)

NEW COMMUNITIES:

HOME SALES: According BoNhia Lee (@bonhialee), new home sales accounted for 5% of the Central Valley residential transactions this year compared to 26% in 2006.

Source: Mark Utman, Marketing Consultant, (559) 549-6326

Asian Capital Infusion – San Gabriel Valley and Beyond

In recent months, the new home market in Los Angeles has begun to show signs of improvement with increases in absorption rates, higher pricing and improved buyer traffic. These signs are welcome in an unsteady time and can be strongly attributed to the strength of Asian home buyers. You may be wondering, what is special about Asian home buyers?

Cash and lots of it! Whether speaking with sales agents and home builders in Pasadena, Azusa and other cities, it is astonishing to hear the strength of the deals that are being done by Asian buyers and investors. In a survey of actively selling and recently sold out communities, sales agents expressed as many as 1 out of 3 sales to Asian buyers have closed with 50-100% cash down payments. An even larger proportion of sales to Asian buyers have been well in excess of twenty percent cash down payments to purchase homes. As witnessed by Land Advisors Organization, the Asian buyer pool has even begun branching into new home communities in markets that have been traditionally dominated by other ethnic groups including, Northeast Los Angeles and the San Fernando Valley.

With such a strong influence on the new home market, builders that design communities to meet the needs and desires of the Asian demographic have seen above market pricing, brisk absorption and incredible buyer satisfaction.

In addition, Asian investors have been a strong source of capital infusion via the EB-5 financing program. The program allows Overseas investors receive a green card and get on a fast track to US citizenship upon investing $500,000 into a venture that creates jobs. Each $500,000 investment qualifies for one green card if it creates ten Jobs. Hospitals, Assisted living and Hotels are popular investment due to the high number of jobs created, but residential developments are also being regularly financed through the EB-5 program as well.

The following articles both highlight the strength and demand occurring in the San Gabriel Valley and surrounding parts of Los Angeles from Asian home buyers and investors.

http://speakingofrealestate.blogs.realtor.org/2011/04/25/asian-wealth-adds-up-to-u-s-home-sale-boom/

http://www.usatoday.com/money/economy/housing/story/2012-04-03/us-homes-lure-chinese-buyers/53977638/1

Within the past three months, the Los Angeles Infill Team at Land Advisors has marketed three deals in the San Gabriel Valley and continues to see a strong desire for builders and developers to acquire new communities in this area.

For information regarding available deals and market data, please contact Chris Gomez-Ortigoza, Tim Barden or Richard Byrd at (626) 376-9840.

Source: Chris Gomez-Ortigoza, Marketing Consultant