That’s how Inland Southern California was defined in a recent U.S. Department of Housing and Urban Development report by Casey Blount on home sales and apartment market conditions.
The 2014 report, based on quarterly data HUD analyzed through September, said job growth and absorption of distressed properties contributed to rising home prices and single-family construction.
Roughly 61,750 existing single-family homes sold during the 12 months ending August 2014, down 12 percent from the 69,900 homes sold over the same period in 2013, the report said. Within that 12 month stretch, REO — real estate owned — and short sales fell 54 percent in Riverside and San Bernardino counties, as standard home sales began to play a more dominate role in the real estate scene.
Standard sales rose 10 percent within that period of time, the report said.
The dip in the number of distressed sales had a hand in driving up median home sale prices to $281,400 for the 12 months ended August, up 14 percent from $247,200 in August 2013, Blount wrote.
An improving sales market also helped drive single-family home construction, but HUD noted that the numbers are scant when compared with the volume of home building that went on in the mid-2000s.
For the third quarter ended September, the single-family home permits issued in Riverside and San Bernardino counties rose by 25 homes to 1,700, or 2 percent from the year earlier when 1,675 permits were issued.
From 2008 through 2011, only 370 single-family home permits were issued in the third quarter. In the home-building heyday, an average 2,675 single-family home permits were issued over the same three month period.
Apartment construction had gains, as well. For three months ended September, 420 multifamily units were permitted — up from 260 in 2013. Currently, 1,250 rental units are under construction, the HUD report said.
Standard & Poor’s Case-Shiller home price index said the pace of home prices across the country has been deteriorating in all but a few cities.
The Los Angeles metro region is one area that measured a 4.9 percent home price growth year-over-year as of October, according to the Dec. 30 report. Since August, Los Angeles area home prices have risen a modest two-tenths of 1 percent.
On the construction front, McGraw Hill Financial reports that November contracts to build single and multifamily homes in the future rose 26 percent to $1.09 billion across California. The Inland region had a 1 percent gain: Its share of housing-related construction contracts for future construction totaled $97.4 million, up from $96.3 million in November 2013.