History Dampens Optimism in West Riverside’s New Home Market
MarketPointe™ Residential Trends™ Publication shows net sales volume in the West Riverside new home market moved upward this quarter, providing a spark of optimism in the region. “That optimism becomes muted however, when you note that every first quarter, dating back to 1995, has seen a first quarter net sales increase” stated Robert Martinez, Director of Research, MarketPointe™ Realty Advisors. “It dims even further when you notice that net sales in the following second quarter have fallen in four of the past five years” said Martinez. In the attached sector, net sales volume increased 21 percent to 64, yet is down 63 percent from the first quarter of last year. In the detached sector, net sales increased 32 percent to 820, the second lowest quarterly output on record. From a year over year perspective, detached net sales are down 46 percent from the first quarter of 2007.
After the overall weighted average price in the region showed a slight increase last quarter, this quarter resumed its negative direction to a 10 percent drop in the overall average. In the attached sector, weighted average price fell for the second consecutive quarter, albeit by less than 1 percent. Attached weighted average home size fell even less than price and when coupled with the price decline, resulted in a slight drop in the value ratio per square foot. In the detached sector, weighted average price fell for the tenth consecutive quarter. An 11 percent decline this quarter pushed the average price down, while the weighted average home size decreased 7 percent, resulting in a 4 percent value ratio decline per square foot.
Overall total inventory in the region decreased for the sixth consecutive quarter, falling 10 percent this quarter to 13,028 units. Offered and unsold inventory, which accounts for 8 percent of total inventory, decreased more than 15 percent this quarter to 1,097 units. Total attached inventory levels fell for the ninth consecutive quarter, dropping 8 percent this quarter to 812 units, the lowest level since the third quarter of 2004. Of the 812 units, 9 percent, or 75 units, were made available to the market yet remained unsold, down 14 percent from last quarter. Total detached inventory fell 11 percent this quarter to 12,216 units, the lowest level since the first quarter of 2004. Of these units, 8 percent or 1,022 units were offered and unsold, down 16 percent from the last quarter and down 71 percent from high in the third quarter of 2006.
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
- Contact via E-mail
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