Chrysler Group, LLC posted increased sales of 34% in March, its biggest increase since 2008. The private sector continued a 25-month job growth streak, adding 120,000 jobs. Across the nation, foreclosures had the lowest quarterly total since the final quarter of 2007.
This frankly, is the kind of news that we’ve all been waiting… and hoping… and waiting, to hear. But in our industry, home sales are all that matter. So the question is: Do increased car sales, steady job growth and decreased foreclosures translate to the housing market? We believe they do and want to highlight some of the recent activity in the land markets that “Team San Bernardino” covers.
- In Eastvale, Pulte Homes (NYSE: PHM) has sold 35 homes since January 1st (yes… 35. It’s not a typo).
- In neighboring Mira Loma, Richmond American (NYSE: MDC) is averaging 4 sales per month through the start of the year.
- After opening just three weeks ago, Meritage Homes (NYSE: MTH) has sold 5 homes in its Rancho Cucamonga project, Whispering Ranch.
- Beazer Homes (NYSE: BZH) is continuing to sell well in its Yucaipa and Upland projects, averaging approximately 4 sales per month in each project.
So Here’s the Trend…
Improved absorptions lead to decreased lot inventory. Decreased lot inventory leads to dwindling pipelines. And thus, dwindling pipelines lead to increased land acquisitions!
So stay steadfast brothers and sisters!! We are nearing the end of the proverbial tunnel.
We couldn’t think of anything either… But here’s an update on San Bernardino & North Central Riverside Counties:
San Bernardino & North Central Riverside Counties currently have 49 actively selling projects, up 67% from 2008, when there were only 16 actively selling projects. (Source: Hanleywood)
- K. Hovnanian takes the lead with 6 actively selling projects
- The majority of active homebuilders in this sub-market have two actively selling projects.
Rental rates have increased 2.2% in the San Bernardino-Riverside-Ontario Metropolitan Statistical Area (MSA) since October 2010
- The current average apartment rental rate is $1,066/unit
- The current average occupancy is 94%
- Article link: http://www.pe.com/business/business-headlines/20111019-real-estate-rental-rates-emerge-from-a-two-year-slump.ece
Clarion purchased 3 multi-family properties for a combined price of $100 million and a total of 586 units.
- The largest property was a 264-unit complex in Rancho Cucamonga called Village on the Green Apartments. This complex sold for $43 million.
- The complex is surrounded by fairways of Empire Lakes Golf Course and is within close proximity to Victoria Gardens and Ontario Convention Center.
- Article link: http://www.rentv.com/content/homepage/mainnews/news/14883
Number of Inland Empire foreclosures DECREASE: Foreclosure filings in San Bernardino fell nearly 17% from August to September 2011, while national foreclosure activity increased by less than 1 percent from Q2 2011 to Q3 2011. (Source: San Bernardino Sun Staff Report)
With all the negativity shared around the real estate industry these days, the California Division’s “Team SB” (known for its cheerful demeanor and rosy disposition) is pouring optimism from the half-full glass in this week’s Landed blog post:
- Despite volatile market conditions, single family lots are still trading to public and private builders in well-located sub-markets along the I-15 Corridor. Several properties zoned for residential use are currently in escrow in Fontana, Rancho Cucamonga and Eastvale/Dairylands.
- New homes sales are slow throughout San Bernardino County, however, a few communities are selling quite well. For example, Beazer Homes’ (BZH), The Enclave at Crafton Hills, located in Yucaipa, has sold 9 homes in the last two months. Land Advisors originally sold the Crafton Hills lots in “finished” condition to Beazer in late 2010.
- Beaumont has been one of Richmond American Homes (MDC), strongest selling sub-markets this year. The public builder’s two actively selling communities are Kensington at Tournament Hills (from low $200s) and Woodhaven (from the upper $100s).
- If there is in fact an NBA season (please God!), don’t miss the Lakers game at Citizens Business Bank Arena (next to Team SB’s multi-family listing: Piemonte at Ontario Center) on October 12th.
Team SB covers residential land activity in San Bernardino and Northwest Riverside Counties. For more information on this sub-market (or more cheery market insight), please contact Doug Jorritsma, Senior Marketing Consultant, (949) 852-8288 x13 and Winn Galloway, Marketing Consultant (949) 852-8288 x27.
In the West San Bernardino County sub-market, only three public homebuilders are currently in escrow. As banks have worked through a majority of their REO inventory, the residential land deal flow has slowed.
Large land plays are making some headway in the Inland Empire, as indicated by the recent sale of Summerwind Ranch for $33.5 million in Calimesa (represented by Land Advisors Organization), which sits on the Riverside/San Bernardino County border.
However, apartment developers are starting to branch out from the core coastal markets and look for worthwhile deals in the better performing sub-markets of San Bernardino County such as Rancho Cucamonga, Chino, Chino Hills, and Eastvale.
Source: Winn Galloway (949) 852-8288 x27, Marketing Consultant covering the West San Bernardino County sub-market