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VBJ-August2017-ONLINE

THE VALLEY BUSINESS

THE VALLEY BUSINESS JOURNAL 24 www.TheValleyBusinessJournal.com August 2017 Local Housing Market as Hot as the Weather REAL ESTATE by by Gene Steve Wunderlich Fillingim June brought the first half of 2017 to a close by posting another record month of sales in our local housing markets while continuing to drive prices higher. May set a new five year high and June extended that roll back to at least 2004 when I started compiling these reports. In all probability, June set a new high water mark for the region with 1,357 single family resales for the month and 5,986 for the first half. That mark will likely stand for awhile as pending home sales were down 13% from the prior month and the rest of the year is historically slower than the first half. If we can maintain the run rate, we appear to be on our way to another yearover-year increase extending the run to five consecutive years of boosting sales. IF we can keep enough inventory available to meet buyer demand. Canyon Lake lead the increase parade with sales up 28% YOY (106 / 147), Lake Elsinore posted an 18% increase (526 / 647) and Temecula and Wildomar added 10% to 1st half sales (948 / 1,056 and 180 / 200), leading our local region to a 13% YOY increase, the largest in the state. Our numbers helped drive the IE region to a 10.4% YOY increase, also the largest increase for regions in the state. The Los Angeles metro region came in 2nd increasing sales by 8.3% and the Bay Area, in spite of being plagued by very low inventory and skyrocketing prices, still came in 3rd with a 6.1% increase. The median price for existing homes in the region reached $355,155 in June, a 1.5% month-over-month increase and up 7% over 1st half 2016. That’s slightly higher than the rest of the IE region where the median rose to $346,380, an 8% increase over the prior year. Across our 9 city region, Temecula ($450,000), Murrieta ($415,000), Wildomar ($404,000) and Canyon Lake ($422,500) all exceeded the Riverside County median of $385,000 but remained well off the statewide median of $555,150. Median prices in Los Angeles County ($492,000), San Diego County ($605,000) and Orange County ($795,000) continue to push prospective coastal residents into our community as both quality of life and affordable housing provide a powerful draw. Now if we could only add enough local jobs so 60% of them didn’t have to drive hours every day… Unsold inventory remained at a low 1.4 months with just 1,743 units for sale, down 24% from last June when buyers had 2,285 homes to choose from. Those homes are also flying off the market in an average 17 days, down 70% from last June when they stuck around for 56 days. I’ll end on a happy note, at least for me. I just returned from vacation (why this newsletter is late) from my home in Telluride, Colorado. Their association just released 1st quarter data as well with the following: sales are up with 37 single family homes sold so far this year at an average price of $2,464,022. They also sold 63 condos at an average price of $1,323,000. Up the hill in Mountain Village they sold 31 single family homes at an average $3,794,484. The most expensive home in Telluride so far this year sold for $6,200,000 and 9 homes sold in Mountain Village for over $6,000,000. One condo sold for $4,150,000 and the most expensive property sold in the region was a ranch for $24,000,000. The most expensive home currently on the market at 851 Wilson Way, is listed for $29,500,000. That will likely pale next to what is referred to as ‘Oprah’s Project’. Oprah already has a $10,000,000 pied-aterre where she will suffer until her new place is built. So far they’ve completed the driveway to the new place which cost $14,000,000! For the driveway! If you’d like to buy a place there, I can sure help you. Happily. Eagerly. Gene Wunderlich, Vice President of Government Affairs, Southwest Riverside County Association of Realtors® SRCAR® . . . the trusted resource for REALTORS® 951-205-1911 http://srcar.org/ “ That mark will likely stand for awhile as pending home sales were down 13% from the prior month and the rest of the year is historically slower than the first half

August 2017 THE VALLEY BUSINESS JOURNAL www.TheValleyBusinessJournal.com 25 Go Local Temecula Valley CONTINUED FROM PAGE 1 They portray a community’s distinctive character and offer a broader range of product choices – and those Main Street public spaces promote community cohesiveness. But today, ecommerce giants and “big-box” retailers threaten the small businesses that employ half of the working population in America. Many of our friends, neighbors and family members are likely to own or work for a small, local business – and they deserve our support. That’s exactly what the organizers of Go Local Temecula Valley have in mind. Go Local Temecula Valley is a local business support initiative founded and sponsored by Temecula-based National Merchants Association (NMA), a merchant advocacy group and payment processor. The purpose of Go Local Temecula Valley is two-pronged: to support locally-owned businesses by facilitating business-to-business collaboration; and to launch marketing campaigns that encourage area residents to patronize local businesses first. “We are excited to be a part of the Go Local program,” said Bob Patel, owner of the new Vail Pizzeria, located in the new Vail Headquarters shopping development in Temecula. “We are grateful for anyone who wants to help support small businesses like ours.” Studies indicate that money spent at locally-owned businesses creates 3 ½ times the local economic impact when compared with money spent at “big-box” retailers, or retail and restaurant chains. This impact includes everything from tax-generated community benefits like fire and police, to job creation, sustainability, quality of life for workers, and commercial and resident investment. “When you spend a dollar bill at a locally-owned business, that dollar bill is much more likely to be spent over and over again within the community,” said Go Local team member Holly Grieco. “The benefits of that are huge for the local economy and the community as a whole.” Go Local organizers have been meeting with business leaders and city officials, and is working to develop partnerships with area chambers of commerce, city governments and business-focused organizations throughout the valley. “We are hoping to support the great work that those groups already do,” said Go Local team member Jeff Pack. “We see this as an opportunity to give back to the business community and we hope cities, chambers and groups will partner with us to make the program as effective as possible. Those organizations are doing vitally important work in the community, and we just want to do our part to contribute.” National Merchants Association has been headquartered in Temecula since 2012, and NMA’s CEO Heather Petersen determined that it was time to increase their support for the business community that has supported them over the past four years. “We’re very proud to help launch this program, and we’re excited about the feedback we’ve already received from other business owners and local residents,” Petersen said. “We think it’s something people will rally around, because everybody benefits from a healthy local business environment.” Businesses that sign up for the program will be provided consumer-facing promotion and networking and event opportunities — free of any membership fee or commitment. Go Local member businesses will receive digital, social media and print advertising support, as well as other benefits. Group organizers are also seeking candidates for the Go Local leadership committee, which will help guide the program going forward. “We know there are a lot of bright minds out there that can bring fresh ideas to the table — that’s who we want to be involved with Go Local,” Pack said. Consumers who sign up for free will receive information and special offers from Go Local member businesses. Local businesses that sign up will receive helpful information about the economic benefits of using local vendors and services; opportunities for collaboration with other member businesses; and Go Local promotional materials and collateral. Consumers and business owners can sign up at www.joingolocal.com. For more information on the Go Local program, e-mail hello@joingolocal.com. “ This impact includes everything from tax-generated community benefits like fire and police, to job creation, sustainability, quality of life for workers, and commercial and resident investment