2012 Ends with Numerous Year-End Closings in Southwest Riverside County

The year of 2012 ended with the most activity in southwest Riverside since the peak of activity in 2006. In December alone, public homebuilders closed on over 900 lots. The lot condition ranged from finished lots to unimproved mapped lots. One of the year end highlights of 2012 were two tentative map lot projects contained within the Temecula School District boundary with Land Advisors brokering the sales. The two maps combined to generate over 300 lots and were bought by two public homebuilders.

On the apartment front, a notable fully leased apartment complex is in escrow at a rumored sales price of +/- $215,000 per door.  While this per door number might seem low when compared to the coastal market, the comp will represent the highest per door sale since 2008.

The above transactions are a result of a number of factors from low interest rates to lack of housing supply available to both buyers and renters. In 2012, we saw a decrease in foreclosure sales as well as REO sales and higher sales volume all together when compared to 2011. As we move forward in the New Year, home sale prices are forecasted to receive upward pressure because supply is expected to remain flat.

Source: Mitch Casillas, Marketing Consultant, (949) 852-8288 ext. 23

Sacramento is booming…

As far as residential land goes.

These past few months have been eye opening on the residential land front.  Just when folks were beginning to write the rest of 2012 off as another down and out year like 2011, someone “poked the bear” and got things moving again.  The past few months in Sacramento have been on fire with the builders knocking down the door trying to grab land positions in core markets.  With the finished lot inventories drying up, everything from paper to finished lots have been targets for both public and private builders.  It is reminiscent of the bump we saw in 2009 and 2010, but with the pipeline of finished lots dwindling, REO product drying up and interest rates in the cellar, this party may be just getting started.

Link:

http://www.bizjournals.com/sacramento/print-edition/2012/10/05/home-price-spurt-correction-new-bubble.html

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