Stability Erodes in the East Riverside New Home Market

Contrary to a relatively stable final three quarters of 2008, net sales volume in the East Riverside new home market fell 22 percent this quarter. The number of actively selling developments dropped 13 percent this quarter, partly explaining the net sales volume decline. In the detached sector, representing more than 99 percent of total net sales volume, a 17 percent net sales volume decline pushed the current quarter level to 257, 56 percent less than the first quarter of last year, as reported by MarketPointe’s Residential Trends Publication. The attached sector, which continues to be a minor player in the overall market, experienced a 92 percent volume drop this quarter to just two net sales. “As bleak as this may appear for the attached sector, two of the previous five quarters posted net sales volume totals below the current level” commented Robert Martinez, Director of Research, MarketPointe Realty Advisors.

Overall weighted average price in the region decreased 20 percent this quarter. The weighted average price in the attached sector dropped 24 percent, as weighted average home size increased more than 5 percent. The weighted average price in the detached sector decreased 21 percent this quarter, a per square foot decline of nearly 18 percent.

A 4 percent increase in overall supply from last quarter, largely due to a single project that added a significant number of future phase units, moved the total inventory count to 5,786 units. Of these units, roughly 13 percent of the total, are units that have been released and remain unsold while the bulk of the total inventory remains in future phases of active developments. Total attached inventory dropped more than 3 percent this quarter to 545 units, the lowest level since the third quarter of 2004. In the detached sector, total inventory increased slightly more than 5 percent from last quarter to 5,241 units. The 635 units of unsold inventory represent the fewest available detached homes in the region since the first quarter of 2005. At current sales rates, offered and unsold attached inventory represents close to two years of supply with the unsold detached supply lasting over six 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