New Homes vs Resale

It's not a surprise where we come down on the question of whether to buy a new or a used home. 

The overall cost savings and benefits of buying new home far outweigh any initial savings that may entice a buyer to purchase a foreclosed home from a bank.

In case you missed it during this weekend's revelry, the Riverside Press-Enterprise's Leslie Berkman wrote a very good article on the subject and included some comments from our Riverside BIA Past President, Steve Ruffner with KB Home.  

Definitely worth a read to start your week!

Read the full article

Also, our regional BIA of Southern California offers an excellent list of 10 reasons why new homes are a much better value than resale.

Read the list

Employment growth in the Inland Empire is California’s highest

The Riverside Press-Enterprise recently reported that employers in San Bernardino and Riverside counties created almost 9,000 new jobs in November, far outpacing the growth across California and the rate of job expansion nationally, according to the state Employment Development Department.

About 19,600 jobs were created in October and November combined in the Inland region. Many of the new jobs were at retail locations, restaurants, and distribution centers. An estimated 2,700 new jobs in November were office workers, suggesting that after almost three years of recession, some employers are starting to hire again.

These gains contributed to the Inland Empire being ranked as the best-performing metropolitan area in California in November.

Hiring is still weak in some of the sectors that used to be the Inland region’s strengths. Manufacturers and the construction industry both trimmed jobs. Unemployment in the Inland region, increased from 14.2% in October to 14.3% in November, as people re-entered the job market, anticipating holiday hiring.

Economists prefer to compare a given month to the same month a year earlier, and those numbers also are encouraging for the Inland region. The trend shows that the job deficit is shrinking. The year-over-year job count was down 1.6% in September, 1.2% in October, and 0.8% in November, from 2009

Riverside County cities could keep impact fee discounts

There's a great story in today's Press-Enterprise about the positive impact fee reductions have had on spurring development (and economic recovery) in the Inland Empire. The news is so good, in fact, that many councils and boards are looking to extend fee reductions set to expire this December.

Our own Riverside County Chapter CEO Mark Knorringa is quoted in the article commenting on how builders have used reductions to help keep projects going:

They have said specifically there were some projects they built when they did because of the fee reduction.

The article includes an interesting city-by-city comparison of permits issued during the first eight months of 2009 vs. the first eight months of 2010.

Read the full article

Photo credit: twoGiraffe

Op-Ed by Riverside BIA Preident Kevin Canning in Today's PE

The Riverside Press-Enterprise today ran a terrific op-ed from President Kevin Canning regarding the need for leaders at the civic, county and statewide levels to work together to help our economy recover. The piece explains the vital role construction, particularly that of new housing, plays in our region's economy and the direct, secondary and other ripple effects it carries across nearly all economic sectors and industries.

Says Canning:

Recent efforts in parts of Riverside County and statewide have utilized a proactive approach to revive the hard-hit construction industry. These include temporary reductions in development impact fees and state/federal tax credits, all of which have had positive effects in the context of the recession. It's critical that we continue to allow these industries to recover and re-establish themselves, as they provide employment and economic activity that are of widespread benefit. 

Read the full article

Photo credit: steveleenow

Shea Homes executive forecasts return to profitability

Be sure to check out today's Riverside Press-Enterprise for an interesting piece on Shea Homes' projections, along with a Q&A with Southern California Division President (and BIA Riverside Past President) Bob Yoder.

He predicts that this year his division will return to profitability after two years of losses.

Says Yoder:

"We think the worst is behind us and we are hopeful that the market is continuing to improve." 

Read the full article