The InSite Report

Orange County housing transitioning from single-family homes to high-density condos

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For the last few decades, Orange County transitioned from a bedroom community of LA commuters to an economic powerhouse in its own right. The housing market evolved from a series of large-lot subdivisions to a few remaining master planned communities and a number of infill parcels. As demand increased, so did density. Rising rents stimulated […]

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Inland Empire Finished Lot Values Show Renewed Strength

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Market InSite relies on the researchers and brokers of Land Advisors for data in two of our subscription reports. Since Land Advisors brokers are involved in so many transactions throughout California, they know the finished lot values prevalent across the state. This data is difficult to obtain, and through our connection with Land Advisors, Market […]

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Where are the building and investment opportunities today?

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The housing recovery elevated prices across Coastal California, but left the Inland Empire behind. While prices rebounded off their 2012 lows, these fringe markets are still undervalued relative to what residents pay for rent on similar properties. Homebuilders are most active where the commutes to major employment centers near the coast are shortest, and also […]

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A Possible Solution to California’s Housing Crisis

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Most people who buy a new home believe the neighborhood is perfect, and after they move in, any additional residents will ruin the neighborhood with more traffic congestion. Most new residents don’t notice the glaring hypocrisy. California needs more housing. Everyone recognizes this fact, even the NIMBYs who oppose all new developments. California builders and developers fail to […]

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What’s Going On With the FHA Loan Limits in California?

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California endures a housing affordability problem. And it’s not merely that house prices are high. Families with high wages could finance mortgages large enough to buy more expensive properties, but they face another roadblock: the down payment barrier. This problem is illustrated below. In Orange County, the conforming loan limit on GSE loans and the […]

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4 Factors That Really Determine Pricing in the Housing Market

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Most analysts focus on job growth or wage growth as the fundamental that underpins the housing market. While job growth is extremely important to homebuilders who provide supply for the newly employed, job growth isn’t what establishes market pricing. Financing terms largely determine the equilibrium price for housing. Short term fluctuations in supply and demand […]

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Undersupplied Markets

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In our last email, we compared the total residential lots in the entitlement pipeline to the number of lots we believe will actually be built upon (“Market Entry Date”) in the next 24 months. The numbers were eye opening – roughly only 10% of entitled lots within West Riverside County will be built upon in […]

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Residential Lots Entering the Market: Next 24 Months

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In our last email, we told you that there are over 160,000 residential lots in West Riverside County that have been submitted or approved by the cities or county for some level of entitlement, including: Specific Plans, Tentative Tract Maps, and Final Maps. So how many of these 160,000 lots will realistically enter the market […]

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Entitlement Pipeline: W Riverside County

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If you had to guess how many residential lots were in the entitlement pipeline in West Riverside County, how many would you think? 75,000? 125,000? How about 160,000+ residential lots that have been submitted or approved by the cities or county for some level of entitlement, including: Specific Plans, Tentative Tract Maps, and Final Maps. You […]

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