West Riverside New Home Sales Ignite a Blaze of Interest
Last quarter’s spark of optimism grew to a significant smolder this quarter. Fueled by continued price declines that have shifted potential bargain shoppers from the foreclosure and short sale markets, net sales volume in the West Riverside new home market moved sharply upward this quarter, reported MarketPointe’s Residential Trends Publication. “As the gap between foreclosed and short sale offerings has diminished, more buyers are gravitating towards a new home purchase that tends to come with far fewer ‘Excedrin moments’ than a short sale or foreclosure purchase,” said Robert Martinez, MarketPointe Realty Advisors, Director of Research. Overall net sales volume jumped 45 percent this quarter. In the attached sector, sales volume increased 91 percent and the net sales in the detached sector represent increased 41 percent.
Although the overall weighted average price in the region increased 1 percent this quarter, overall average home size increased 2 percent causing a 1 percent drop in the overall value ratio, a truer measure of home value. In the attached sector, weighted average price fell 7 percent as the weighted average attached home size gained 2 percent. This price decline, coupled with the increase in home size, caused a more than 8 percent drop in the attached value ratio per square foot. In the detached sector, weighted average price increased 3 percent but was accompanied by a 4 percent increase in home size causing a 1 percent value ratio decline per square foot.
Total attached inventory levels fell for the tenth consecutive quarter, dropping 51 percent this quarter. Largely a result of multiple projects moving to off-market status, this current level is the lowest since the second quarter of 2004. Of the 398 units, 13 percent, or 50 units, were made available to the market yet remained unsold, down 33 percent from last quarter. Total detached inventory fell 17 percent this quarter to 9,939 units, the lowest level since the first quarter of 2002. Of these units, 6 percent or 626 units were offered and unsold, down 39 percent from the last quarter. In terms of length of time to exhaust this inventory, offered and unsold attached inventory represents roughly six weeks of supply while the detached unsold inventory would last about two months.
MarketPointe™ Realty Advisors provides new housing market statistics throughout California via its ResidentialTrends™ new-home database and its LandTracker™ proposed development database, as well as site specific, tailored housing market research and consulting services. Comprehensive “Housing Market Overviews” providing new home sales, pricing, housing inventory trends, future housing supply, and new and leading developments are available for regions across California by going to www.marketpointe.com/landing. Phone San Diego at 619-233-3781, Orange County at 714-528-2554, Sacramento at 916-710-1396; url:www.marketpointe.com.
- Contact Information
- Robert D. Martinez
- Director of Research
- MarketPointe™ Realty Advisors, Inc.
- Contact via E-mail
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