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