Riverside BIA - March Newsletter

March 3, 2008

Message from BIA President, Bob Yoder

Enough bad news already! Riverside County BIA is fighting hard to help your business in these tough times. I believe we have made substantial progress and offer seven signs to show that the market is improving:

1. We’re selling homes.

2. We’re building homes.

3. Builder discipline has improved.

4. Great interest rates.

5. The federal stimulus package.

6. Fee deferments.

7. Our industry is improving.

Read Bob’s entire synopsis here

Government Affairs Update

Almost all Western Riverside County cities have now deferred impact fees until Certificate of Occupancy. Bold denotes new additions since our last update.

• Banning

• Hemet

• Calimesa

• Eastern Municipal Water District

• Western Municipal Water District

• WRCOG – TUMF Master Ordinance

• Riverside County

• City of Riverside

• Corona

• Perris

• Lake Elsinore

• San Jacinto

• Moreno Valley

Additionally, after unanimous consent from the Board of Supervisors, Riverside County has formed a “Strike Force” to overhaul the entire permit and entitlement process.

New Conforming Loan Limits

Congress acted on a Federal stimulus package that will help thousands of California homeowners save their homes and help thousands of first-time homebuyers afford to buy new homes. Governor Schwarzenegger, the National Association of Homebuilders and the California Building Industry Association (representing BIA Riverside) worked hard to increase loan limits to as much as $729,250 (depending on the region) and provides a much needed stimulus to the economy.

CBIA Chart reflecting 125% of conforming loan limit

Economic Indicators Promising

Last month, MarketPointe Realty Advisors CEO and BIA of San Diego Board Member Russ Valone, offered a comprehensive economic summary that bodes well for our future. Valone shared the following observations why market conditions are improving:

New Home inventory is on the decline.
Population growth is forecast in excess of 100,000 per annum through 2020.
Inland Empire estimates a growth rate of 30,000 to 52,000 new jobs annually.
Average new-home prices may continue to decline in 2008, however, home builders are fitting their future home developments to meet current price points.
Increases in the conforming loan limits are making it easier for new home-buyers to finance their homes in high cost areas of California.
If you can, BUY NOW, the deals are fantastic.

Important Links

Member of the Month

March’s BIA Member of the Month is Brenda Le with AmTrust Bank. Brenda has been a member of BIA Riverside since 2004. She is a member of BIA Riverside’s Golf Committee for the past four years and currently serves as the 2008 Events Chair for the Women’s Council, Riverside Division.

Brenda always goes above and beyond the call of duty as a BIA volunteer, making the jobs of her colleagues and fellow members easier. Thank you Brenda for your tireless service to the building industry – we appreciate everything that you do for BIA Riverside, its members and homeownership.

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