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California Homebuilder Sees Presales for First Time Since Start of the Recession
Towbes Group Starts Construction of Third Phase of Single Family Housing Development in Santa Maria, CA. Homebuilder sees pre sales for first time since the start of the recession.
Lavigna is a gated master planned community in the Westgate Ranch area of Santa Maria, 45 minutes north of Santa Barbara. The three-and four-bedroom homes with floor plans ranging from 1,200 to 2,000 square feet are priced between $229,000 and $299,000.
“We have seen a very dramatic uptick in the housing sales at Lavigna and this is the first time we’ve have presales in any of our phases before the crash,” said Seeple. “Of the 38 homes we’ve brought to market since the start of the second phase in January 2012, 29 have been sold.
The spike in housing sales is a reflection of an improving housing market in the California. According to The Ryness Report, a weekly gauge of new home sales in Southern California, new home sales are up 38 percent over the same time last year. The report published by Danville, CA market research firm The Ryness Company also reveals the region has enjoyed the best average weekly sales of new homes per project (.42) in more than five years.
Seeple attributes the activity to a combination of the availability of low rate financing, an improving economy and a rapidly declining housing inventory.
“Not only are interest rates at historic lows, financing is becoming increasingly available which is a great sign for the housing industry,” adds Seeple. “However, many homebuilders have been sitting on the sidelines waiting out the recession, which resulted in a lack of inventory. It is going to take at least 18 months for builders to catch up. We are actually beginning to hear complaints from Realtors about the lack of available new and resale housing in the area.”
According to Seeple, the local economy is also showing signs of recovery, with hiring picking up in manufacturing and oil production. This coincides with a recent report released by the California Employment Development Department, which shows the state unemployment rate at 10.6 percent down from from 11.7 percent in August 2011. Forecasts project the unemployment rate to fall below double digits by the end of next year.
The Towbes Group, Inc. is a fully integrated real estate investment, development and property management company. Founded in 1960, the Santa Barbara, CA-based firm has developed more than two million square feet of commercial real estate and nearly 6,000 single family and multifamily units in the Tri-county area. . With 1.8 million square feet under management, Towbes Asset Management provides asset and property management for its own portfolio and third party clients.