Source: Tom Reimers, President, (949) 852-8288 x28
2011 began with renewed optimism that California’s Central Valley residential land market would improve and home sale prices would begin to stabilize. As Q2 rolled around it became evident this optimism may be short-lived.
In 2011 the Central Valley sub-market (including Kern, Kings, Madera, and Tulare Counties) has seen a slight decrease in foreclosure and REO sales (currently at 32% and 28% respectively); yet new home sales continue to lag far behind at a little over 5% of total sales.
Tertiary markets (including the cities of Arvin, McFarland and Wasco) which traditionally attract builders who utilize government subsidies for potential home buyers are experiencing extended wait periods, or are unable to obtain financing altogether.
Most public homebuilders and larger regional builders have left the valley or “shelved” their projects until the market shows real signs of recovery.
However, there are investors and developers with long-term horizons looking for land/lot opportunities and have been successful in closing transactions throughout the South Central Valley.
Source: Jason Hepp, Senior Marketing Consultant, (661) 702-9080 x14