Kern County New Home Competition Drops as Sales Increase
MarketPointe’s Residential Trends™ Publication shows a 5 percent decline in the number of actively selling developments, all of them detached. “Net sales volume moved contrary to the decline in the level of activity” according to Robert Martinez, Director of Research, MarketPointe™ Realty Advisors. “The 74 active developments in the Kern County market posted 224 net sales this quarter, an increase of 39 percent from the historical low set last quarter” said Martinez. While an impressive volume increase, this current level remains 57 percent less than the first quarter of last year and 62 percent below the first quarter of 2007. Of the five projects that sold out last quarter, three projects were deemed off market as a result of the elimination of sales programs. One project moved their unsold homes into a rental program while the other two completely eliminated unreleased phases from the development.
Weighted average price in the region increased for the second consecutive quarter, the first consecutive quarter increase since the fourth quarter of 2005 and the first quarter of 2006. This quarter’s weighted average detached represents a 4 percent increase over last quarter. Also increasing this quarter was the weighted average home size with a 1 percent gain to an average of 2,085 square feet. These price and size increases resulted in a more than 2 percent increase in the value ratio for a detached home, the first increase in more than a year.
Inventory in the 74 active detached projects, one of them audited for the first time this quarter, decreased for the third consecutive quarter. This quarter’s 7 percent decline pushed the total supply number below the 8,000-unit mark for the first time since the first quarter of 2007. Of 7,780 total units of detached inventory this quarter, more than 92 percent constitute units within unreleased future phases of existing developments. Inventory that represents more immediately available supply stands at 598 units, a 14 percent decline from last quarter. Together, both unsold inventory and inventory that has not yet been made available to the marketplace represent more than eight years of total supply. However, the inventory that has been made available and remains unsold represents less than eight months of supply.
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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