Source: Tom Reimers, President, (949) 852-8288 x28
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
In 2010 and 2011, a majority of the land sales were driven by financial institutions that were in a distressed position to move land holdings off their books. The majority of the buyers for these properties in 2010-2011 were speculative investors that had a 3-5 year business plan before selling. Now that the financial institutions have sold through most of these distressed assets in West Riverside, the question to investors, developers and homebuilders is who now is in a position to sell?
LAO – West Riverside Current Projects: Land Advisors’ West Riverside Team is tracking a number of off-market projects that it expects to transact on this year. The Team just secured a high profile mixed-use listing in the City of Riverside that it hopes to bring to market in the next 30 days.
2012 Land Activity: On January 18th, 318 acres of unimproved land in the City of Corona sold at the Court House steps to a land investor.
Source: Mitch Casillas, Marketing Consultant, (949) 852-8288 x23