California’s Appreciating Assets
Inman News reports: “Average new-home prices rise 39% in California”
Home builder Meritage Homes Corp. today announced an all-time record for homes in backlog and first-quarter records for sales orders and closings.
Meritage reported a $1.78 billion backlog in home orders, up 98 percent from the order backlog for first-quarter 2004. That represents orders for 5,627 backlog homes, compared with 3,279 backlog homes at the close of first-quarter 2004.
The dollar value of sales orders and home closing revenue increased 49 percent and 30 percent, respectively, over the same period last year.
“Demand for our homes remains strong,” said John R. Landon, Meritage co-chairman and CEO. “In order to manage our record backlog levels, we have been limiting the number of lots released for sale in many of our communities. In several of our communities, demand is so strong that we have waiting lists and have seen significant price appreciation.”
“Rising population and housing demand, combined with a restricted land supply, are pushing prices higher in the California market,” says Landon. “In our California division, the average price of homes ordered during the first quarter 2005 increased 39 percent over the first quarter a year ago. We attribute this increase to several premium-priced communities in California that were either not open for sales a year ago or which had significant increases in sales rates over last year and to generally increasing pricing levels.
Many predict it’s a real estate “bubble” that’s going to burst. But many been saying that for a couple decades. One day, they’ll be right.
RELATED: The same week, Inman also reports: “Real estate foreclosures surge 50% - Rising interest rates to blame“
The number of new foreclosed residential properties soared 50 percent nationwide in March from the previous month, according to Foreclosure.com, which tracks residential foreclosures and for-sale-by-owner properties.
Just goes to show there’s always a downside…
April 19th, 2005 at 11:09 am
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