East Riverside New Home Sales Scramble to Get on Course
Although 2008 will not be remembered in development circles as a banner year, ultimately, it did provide some stability in terms of sales volume in the East Riverside new home market. The final three quarters hovered in the low 300 net sales neighborhood before slipping under that mark in each of the first two quarters of 2009, as reported by MarketPointe’s Residential Trends™ Publication. This quarter noted an 11 percent net sales improvement over last quarter but fell 13 net sales short of the 300-unit mark. “I expect that the overall volume numbers will remain on par with the current levels, despite increased absorption levels in both sectors, mainly due to the continued decline in overall competition in the region,” commented Robert Martinez, Director of Research, MarketPointe™ Realty Advisors.
Overall weighted average price in the region decreased 13 percent this quarter, for an average 2,178 square foot home. The weighted average price in the attached sector surged 44 percent, as weighted average home size increased nearly 39 percent to 2,017 square feet. The weighted average price in the detached sector dropped more than 14 percent this quarter, for an average 2,186 square foot home, a per square foot decline of more than 10 percent.
Overall inventory levels in the region dropped more than 15 percent this quarter, but of the nearly 900 fewer units of total inventory this quarter, roughly two-thirds are from 13 projects that have discontinued sales programs and are out of the market. Of the 514 units of inventory that have been offered for sale yet remain available, 48 are attached units, a decline of 48 percent from last quarter, and 466 are detached homes, a decline of 27 percent. At current sales rates, this offered and unsold inventory represents just over ten months of attached supply with the detached supply lasting less than five months. Future phase inventory continues to hold the bulk of total inventory with 365 attached units still unreleased in active developments, or more than six years of supply, and more than 4,000 unreleased detached homes, a supply of roughly three and a half years.
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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