According to an article in the San Diego Union-Times, the housing market is still having issues with prospective homebuyers getting their hands on new homes due to developers not being able to get products quickly enough. This is still effects from the recession still lingering
The foresaid statement was said by Beth Fischer who is the Pardee Homes Executive for the San Diego bureau, also mentioned to the San Diego Union-Times that another difficulty of building homes has to do with layoffs and infrastructure projects that were scaled back.
Pardee is a 92-year-old area estate developer of new homes in San Diego, Los Angeles, the Inland Empire and Las Vegas.
During this recession, according to the article, Pardee lost 80 percent of its business, so they reacted by laying off 75 percent of the staff. Even with the housing market being more than lucrative for new-home buyers, the amount of homes that were new were meager.
The San Diego office predicted that in the next three years that they will construct 15,000 a year, however two-thirds of the demand will be satisfied because that’s how much building permits reflect according to the Union-Times.
According to DataQuick, median prices were up 17.9 percent, posting a price of $412,750. The prices will continue to rise according to Fischer, but not as high as they rapidly as the year-over-year 24 percent that was recorded during the summer.
“All that conserving of cash and cutting cost meant a little extra in the way of infrastructure in the ground, permits in process and projects and entitlements,” Fischer’s quote says in the Union-Times that she was saying to the Woman in Real Estate Conference at the University of San Diego. “Builders not holding land felt that heat in competitive lot purchase bids and there were few lots in ready to go condition.”
Other problems in new construction was due to the regulations in the environment and the topography of the San Diego real estate according to the article.
Fischer and the rest of her company will concentrate on building closer to good schools, neighborhoods with centralized services and gathering spaces as well as a walkable, bike-friendly neighborhood. Pardee will also focus on making the home top of the line in new technology to phase out the competition in older homes.
“Since San Diego’s Communities won’t suddenly decide to embrace new housing, affordability will definitely suffer,” Fischer said in the Union-Times.
By: Linda Moore