Arcadia New Homes

STEADY SALES, BIG INVENTORY, STRONG PIPELINE

The MLS reported fifty-eight (58) new Arcadia (detached) homes were sold in 2014.  The median sales price was $3,180,000. The average new home contained 5,563 sq. ft. of living space. The average new home lot contained 14,207 sq. ft. The average sales price per sq. ft. for all new homes in 2014 was just under $610. A 10,869 sq. ft. Upper Rancho home earned  the highest sales price award at $8,388,000!

The pace of new Arcadia homes sales so far in 2015 has been consistent with 2014. Through the end of June, thirty-one (31) new Arcadia homes have sold. The median sales price was $3,080,000, a slight decrease from 2014.  The average new home contained 6,284 sq. ft.  The average lot size was 17,497 sq. ft. The average sales price per sq. ft. for new Arcadia homes (detached) so far this year is $583, a little less than in 2014. Again, so far this year, a 10,021 sq. ft. Upper Rancho home earned the highest price award at $8,230,000.

New (detached) home inventory is at a high level. At the end of June forty-five (45) new homes were listed for sale on MLS as ACTIVE, BACKUP or PENDING. During the last eighteen (18) months, closed sales have consistently averaged five (5) per month. Those forty-five (45) homes translate to a nine (9) month inventory given recent sale velocity. It appears this high inventory has resulted in some builders changing direction and putting their recently purchased “tear-down” properties back on the market.  At the end of June seven (7) properties were listed for sale with building plans in place for construction of a new home. A developer client related  his firm and a number of competing builders are “not willing to pay the same price for land”  (“tear-down” properties) as we did last year”.

Even with the high inventory,  the pace of new home construction should be steady. The Arcadia Building Dept. reported 115 single family home  (detached) building permits were issued in 2014. Through June of this year, sixty-nine (69) SFR (detached) building permits were issued.  This is a “strong” pipeline.

During the last eighteen months 129 MF (multi-family) unit building permits were issued. It is a good guess that all of these 129 units were for sale condos and townhouses versus any apartment units. Land costs and other economic factors  dictate “for sale” MF housing development.