Category Archives: Property

Economy General Property

2016 Economic and Housing Market Outlook

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By Oscar Wei, Senior Economist

CALIFORNIA ASSOCIATION OF REALTORS®

Economic Outlook

The U.S. economy ended last year with a lackluster performance of 1.4% annual­ized growth rate in the fourth quarter of 2015. While the annual increase in GDP in 2015 maintained the pace as that of 2014, it was a letdown for many econo­mists who predicted a stronger outlook for the nation last year. The subpar per­formance of the year was due to multiple factors including: 1) the sharp decline in oil and commodity prices; 2) the eco­nomic slowdowns in China, Europe, and Canada; and, 3) a strong dollar that makes American goods relatively expensive and weakens demand overseas. Despite the hiccups in recent quarters, the labor mar­ket continued to improve, with nonfarm employment averaging a gain of more than 233,000 new jobs per month in the last 12 months.… Read the full article

Economy General Property

Most High Desert Home Values Trending Up

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Fig 1 Most High Desert Home Values Trending Up

By Bob Dutton
Assessor-Recorder-County Clerk
San Bernardino County

As the newly elected Assessor for San Bernardino County, I am very interested in monitoring and taking action to stimu­late economic development in the region. One of the key indicators of the regional growth is the value of the various prop­erty types within the County.

Over the last several years, dating back to 2008, there have been some very dra­matic changes in assessed property val­ue. Before we discuss property value, it is important to distinguish the difference between market and assessed property value.

Market value: The lowest price a sell­er would be willing to receive while at the same time the highest price a buyer would be willing to accept on an open and competitive market.… Read the full article

General Property

Hesperia’s Tapestry Master-Planned Community will be a Jewel of the High Desert

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hesperia-jewel

By the Tapestry Development Team

Nearly 25 years after first being set into the plans at the founding of the City of Hesperia, a master-planned community is finally going to be a re­ality. The former Rancho Las Flores Specific Plan is now the Tapestry mas­ter-planned community. The project is being developed by Terra Verde Group, which has a successful history of build­ing master-planned communities in Southern California and throughout the United States.

Even though the property is already entitled for over 15,000 homes and is part of the City’s General Plan, the project will face additional review due to updates in its plans. In the next few months, Tapestry will go before the Hesperia Planning Commission and City Council for approval of a new En­vironmental Impact Report (EIR), Spe­cific Plan, and Phase I Tentative Tract Map.… Read the full article

Economy General Property

Housing the Future: Availability = Affordability

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By Carlos Rodriguez
CEO of the BIA
Baldy View Chapter

The Inland Empire has a severe housing shortage, which if left unchecked will continue to negatively impact the economy by limiting housing affordability, job creation and local tax revenues.

On February 5, 2015, National Community Renaissance hosted a Symposium on the Affordability of Housing and published a study entitled “Housing the Future: The Inland Empire as Southern California’s Indispensable Geography.” Participating in the symposium were local elected officials, representatives from the California Realtors Association, California Apartment Association and the Building Industry Association Southern California, Baldy View Chapter (BIA).

“We need a government that understands that growth is important, that diversity of employment is important, and that housing is important,” said Joel Kotkin, researcher and author of the Housing the Future study.… Read the full article

General Property

Comparative Market analysis: Does CMA accurately Price Property to Meet Current Market Demands?

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By Bob Thompson

We collect our just due when a listed property closes. We want to tell all that our “Marketing Plan” will save the day. But properties fail in droves especially in times where there is an excess of supply over demand. This is part 1 of a multi-part essay to look into the scourge of expiration, cancellation and withdrawal. The concluding paper offers a new method to price and manage listed property that moves the CMA into the background where it belongs.

An unmistakable outbreak of joy occurs all around when a property is listed. The agent is happy. He looks forward to future income as does the broker. The title company looks forward to a new policy and all the other vendors sense higher times ahead.… Read the full article

General Property

Countywide “Vision in Action” Can Help Victor Valley Economic Recovery

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By Carlos Rodriquez
CEO
BIA Baldy View Chapter

New single-family home construction has remained flat in the Victor Valley for the third consecutive year, with only 244 permits in 2013 – an increase of 80 permits over the past year. This is still a long way from the height of the housing market in 2005 when 6,408 permits were pulled or roughly 43% of the total permits in the entire county. Today, the Victor Valley permit activity only accounts for 13% of the total countywide permit activity.

This reduced permit activity has resulted in significant job loss and increased unemployment in San Bernardino County. From 2005 to 2012, construction industry jobs countywide declined 42% with almost 19,000 construction-related jobs lost. Likewise, unemployment in the Victor Valley has increased by 56% during that same time period.… Read the full article

Economy General Property

Homeownership Policy Priorities-A Federal Perspective

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By Carlos Rodriguez
Chief Executive Officer
Building Industry Association (BIA) Baldy View Chapter

Every new home built creates three jobs, as well as expands and increases the tax base that supports schools and our community.

Our homes are the foundation of strong communities, and it is imperative that we pay attention to the debate about housing policy occurring at the national level.

Thanks to national policy that has acknowledged the importance of the home in American family life for almost a century, generations of Americans have counted on their homes for their children’s education, their own retirement and a personal sense of accomplishment.

Despite the fact that most Americans want change that will mend the housing market, create jobs, and boost the overall economy, policymakers are proposing radical changes that threaten the dream of homeownership for millions of current and future Americans.… Read the full article

General Politics Property

Assessed Values on the Increase

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By Dennis Draeger
Assessor-Recorder-County Clerk
County of San Bernardino

Proposition 13, overwhelmingly approved by California voters in June 1978, is the basis for property tax assessment today in California and all of its 58 counties. Prior to the passage of Proposition 13, property taxes could increase dramatically from year to year based on the market value of the property. The tenets of Proposition 13 limits the tax rate to 1 percent plus additional rates necessary to fund local voter-approved bonded indebtedness. It limits the assessed value increases to a maximum of 2% per year on properties that did not undergo a change in ownership nor had completion of new construction. Proposition 13 placed explicit limitations on the power of government to impose additional property taxes and it requires real property to be assessed at its current market value upon a change in ownership and new construction is to be reappraised at its current market value as of its date of completion.… Read the full article

Economy Property

Real Estate Market Outlook-Fall 2012

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By Alfred Gobar
Chairman, Alfred Gobar Associates

Over the past 50 years, increase in nonagricultural wage and salary employment as reported by public agencies has correlated closely with household formation and, therefore, housing occupancy. Employment growth is a good thing for real estate markets. An index of nonagricultural wage and salary employment for Southern California as a whole (Ventura, Los Angeles, Orange, Riverside, San Bernardino, and San Diego Counties) is illustrated in Exhibit A in comparison with a similar index based on the 1990 recession. As indicated, employment declined more in percentage terms in the current recession than it did two decades ago, and the recovery has been relatively feeble. Those of us interested in the High Desert real estate market, therefore, should have patience in order to identify attractive real estate market opportunities.… Read the full article

Economy Property

Some Encouraging Signs on the Home Front

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By Carlos Rodriguez
Chief Executive Officer
Building Industry Association (BIA) Baldy View Chapter

After years of cautious optimism, home building professionals are beginning to see signs of improvement in Southern California’s housing markets. While there is still a long road to a full recovery, the good news is Southern California home sales rose to their highest level in six years while prices hit a four-year high in August.

Data Quick reports that the number of homes sold increased more than 14 percent in August to more than 22,000 compared to the same period last year. The median price for new and existing houses and condos in the six-county region rose nearly 11 percent to $309,000 last month compared to August 2011.… Read the full article

Economy Property

The Expansion of the Panama Canal Will Not Have a Negative Effect on the Demand for Industrial Space in Southern California

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By Ronald J. Barbieri, Ph.D., CPA
The Bradco Companies

The completion of a third set of locks in the Panama Canal by 2015 will enable container vessels capable of carrying up to 12,000TEU’s of containers to pass through the canal and deliver goods from China and other countries in the Far East directly to eastern half of the United States via East and Gulf coast ports. The conventional wisdom is that this will substantially reduce the flow of in-bound containers through the Ports of Los Angeles and Long Beach. An article titled: “Panama Canal: Myths and Misconceptions” that appeared in the May 2012 issue of the American Shipper argues that the opening of the third set of locks in the Panama Canal will only have a minimal impact on the volume of imports entering through the twin Southern California ports.… Read the full article

Economy Property

A Shortage of Homes for Sale Has Caused a Significant Increase in the Price of Homes in the High Desert

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By Bob Thompson & Ronald J. Barbieri, Ph.D., CPA 
The Bradco Companies

During the 2004 -2005 housing bubble, 600 new homes were sold each month in the Victor Valley area in addition to 500 previously owned homes. The vacancy level was low and builders were straining to meet demand, which was artificiality inflated by the lax lending standards fostered by the federal government through Freddie Mac and Fanny Mae. The median price for previously owned single family homes in the Victor Valley area peaked in February 2006 at $322,000. By April 2009 the median price had declined approximately 68% to $103,000, which was the low point for this real estate cycle. In March 2012 the Median price for the area was only $110,000; however prices have increased consistently since May of this year.… Read the full article

Politics Property

The County of San Bernardino is Moving Forward with Major Construction Projects

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By Brad Mitzefelt
Vice Chairman & First District Supervisor
San Bernardino County Board of Supervisors

As I’m completing my service as San Bernardino County’s First District Supervisor in December, I’m pleased to take this opportunity to update readers of the High Desert Report on just a few of the county’s many ongoing and recently accomplished initiatives.

First and foremost, the ability of local government to provide public services is correlated to the success, or lack thereof, of local businesses. While I have recently successfully pushed for reforms to our development code and permit processing to encourage economic activity, my successor will have much to work on to build on this progress. In addition to whether an area is open for business, there are several other factors considered by a business making a decision about where to locate, including infrastructure and quality of life, especially related to public safety and public and private amenities.… Read the full article

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