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
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