High-Density, Transit-Oriented Development Should Be Built - Just Not in My Backyard

Also in today's LA Daily News is an article that once again reminds us that while many policy makers say most future housing should be high-density developments close to transit lines, that support sometimes waivers when it's in their backyard.

A developer wants to build a 399-unit apartment complex with ground-floor retail on Sepulveda Boulevard just north of Ventura Boulevard in Sherman Oaks. More exactly, the vacant lot hugs the intersection of the Ventura and San Diego freeways.

But while a neighborhood council somewhat hesitantly endorsed the plan on Monday, the influential local homeowners' association fervently opposes it - and the City Council member who thanks to redistricting now represents the area thinks it's a "little big."

We'll have to wait and see how this oft-repeated dance turns out.

Shortage of Homes Sparks Sales in the Valley

The LA Daily News reports today that a shortage of homes for sale is sparking "bidding wars, quick sales and an investor feeding frenzy."

Reporter Greg Wilcox cites an example: A real estate agenct recently had a listing in Tarzana priced under the market at $599,000 and held a broker's open house, used to introduce other agents to the property, on a Friday morning. More than 200 people showed up and the property attracted multiple offers. It's now in escrow for $715,000.

Why the bidding wars? Simple. There aren't many homes for sale, Wilcox notes:

At the end of March there were just 1,875 houses and condos for sale in the San Fernando Valley, according to the Van Nuys-based Southland Regional Association of Realtors, a scant 2.8 month supply at the current sales pace. That's the lowest since the start of the downturn in 2007.

While there are still obstacles out there, it would appear the market is turning.

CIRB Service Acquired by Homebuilding Foundation

Good news to report this morning. The California Homebuilding Foundation - an affiliate of the California Building Industry Association in Sacramento - has acquired the assets of the Construction Industry Research Board from BIASC and will continue collecting and disseminating its crucial data on residential and commercial construction.

You can read the joint CHF-BIASC press release here and our initial blog post here.

225 BIA Members Tour Lambert Ranch Models

A side courtyard (front) flows into the great room and then into the back yard in one Lambert Ranch floor plan.In yet another sign that the region’s homebuilding market is continuing to improve, the New Home Company hosted a tour of its upscale Lambert Ranch project in the rolling hills of northern Irvine on Monday to more than 225 BIASC members.

Even more importantly, company officials said more than 3,000 people toured the models over the weekend during its official grand opening.

The company is building 169 homes in three distinct types ranging from 2,730 to 4,876 square feet. The homes incorporate two of the hottest trends in Southern California homebuilding – multigenerational housing opportunities and floor plans that carefully integrate indoor and outdoor living spaces. Options range from dual master suites to a floor plan with separate entrances to the ultimate concept – a two-home family compound.

At the event, sponsored by BIASC’s Orange County Chapter, builders from throughout the region toured the model homes and carefully inspected designs, amenities and materials.

The New Home Company was founded by former executives from John Laing Homes and the Irvine Company – Larry Webb, Joseph Davis, Tom Redwitz and Wayne Stelmar – and is developing communities in Orange County and Northern California.

Lots of Good News on the Housing Front

UPDATE: Zillow this week issued a forecast that the majority of markets across the nation, including L.A., would hit bottom by the end of this year or beginning of next. Here's the money quote:

Low home values paired with extraordinarily low mortgage rates should serve as a signal to consumers that now is a good time to buy. As more home buyers get off the fence, home sales, both existing and new, will continue increasing and help stabilize home prices in the long run.

You can read the Zillow report here and the LA Times Money & Co. post here.

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There's been a lot of good news on the housing front this week. Economist Mark Zandy declared that "the crash is over." And Dr. Doom himself, economist Christopher Thornberg, said "the recovery is here."

And then in today's Wall Street Journal (sub. req'd), comes this headline: Stunned Home Buyers Find the Bidding Wars Are Back. And as reporter Nick Timiraos reported, it's a simple matter of supply and demand.

From California to Florida, many buyers are increasingly competing for the same house. Unlike the bidding wars that typified the go-go years and largely reflected surging sales, today's are a result of supply shortages.

The article also notes that the declining inventory of older homes is spurring sales of new homes. New home sales are up 16% so far this year, compared with a year ago, while inventories of new homes fell in March to their lowest level since record keeping began in 1963.

Earlier in the week, several public homebuilders reported that sales were up during the first quarter.

All in all, it's been a pretty good week.