East Riverside’s New-Home Market Still Searching for the Bottom

In the East Riverside new-home market, the third quarter of 2009 followed the lead of the previous two quarters by failing to reach the 300-unit net sales mark, reported in this quarter’s MarketPointe™ Residential Trends Publication. “Unfortunately, this quarter took futility one step further and pushed below the 200-unit mark for the first time since the third quarter of 2006” said Robert Martinez, Director of Research, MarketPointe™ Realty Advisors. This quarter noted a 36 percent net sales decline from last quarter dropping to 184 overall net sales. These 184 overall net sales are overwhelmingly detached with 94 percent, or 173 net sales, coming from the detached sector. The attached sector experienced a 22 percent net sales increase gaining two net sales to 11 net attached sales.

Overall weighted average price in the region increased 20 percent this quarter. The weighted average price in the attached sector dropped 43 percent, as weighted average home size fell 26 percent per square foot. The weighted average price in the detached sector increased nearly 24 percent this quarter, a per square foot increase of more than 23 percent.

Overall inventory levels in the region dropped close to 13 percent this quarter, but of the more than 600 fewer units of total inventory this quarter, roughly two-thirds are from eight projects that have discontinued sales programs and are out of the market. Of the 379 units of inventory that have been offered for sale yet remain available, 45 are attached units, a decline of 6 percent from last quarter, and 334 are detached homes, a decline of 28 percent. At current sales rates, this offered and unsold inventory represents close to 12 months of attached supply with the detached supply lasting roughly four months. Future phase inventory continues to hold the bulk of total inventory with 348 attached units still unreleased in active developments, well over seven years of supply, and more than 3,500 unreleased detached homes, a supply of roughly 3 1/2 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