Page 15

High Desert Report

15

A quarterly economic overview

Inland Empire Housing Market Continued

California-Nevada Interstate Maglev Project Continued

unprecedented slump, the resale market has rebounded nicely, with annualized sales volume nearly doubling between 2Q08 and 4Q09. Renewed interest in homebuying is driving up demand for homes, leading to the recent price gains in the Victor Valley. Since 2Q09, the median home price is up 8% - a welcome change from the 68% price drop that was endured between 4Q06 and 2Q09. Moving forward, foreclosures remain a significant obstacle to housing growth. In 4Q09, there was one foreclosure activity for every 20 households – much higher than the IE average of 28. Until new jobs are created and the foreclosure inventory is addressed, the best hope is for flat to moderated growth in sales volumes.

About The Concord Group The Concord Group is a leading real estate strategy firm with offices in Newport Beach, San Francisco and Boston. TCG’s professional consulting staff completes hundreds of assignments annually in the U.S., Europe, Asia, and Latin America. Our services include market and consumer analyses, transaction due diligence, and asset valuation. Recent private equity assignments have included multiple analyses of distressed assets of commercial banks and new acquisitions for next-cycle development. We also continue to assist developer, builder, and financial clients on value maximization of owned-assets. We cover all property types (commercial, residential, and land), in all metro areas and work under tight due diligence deadlines.

Significant benefits will be derived for the highly congested segment, between Anaheim and Ontario, which covers the last 35 of the 90 miles between Victorville and Anaheim. Benefits attributable to the Maglev system versus the No-Build along this segment are estimated to amount to nearly $6.8 billion in savings from reduced delay and accidents, over the project study evaluation period, 2010 and 2050. Furthermore, the Maglev system will reduce between 28,000 and 42,000 daily person trips from area freeways over the period respectively. These diversions would also result in the following benefits: • Reduction in Vehicle Miles Traveled (VMT) is projected to be approximately 744 thousand daily and 267 million annually. • Reduction in Vehicle Hours Traveled (VHT) is projected to be approximately 55,000 daily and 20 million annually. • The impact of these diversions was monetized and results showed that the value of delays saved varied from $205 million in 2010 to $247 million in 2050. • Fatality savings would range between about $3 million per year in 2010 to about $5 million in 2050. Sources 2000 California-Nevada interstate Maglev Project, Project Description, submitted to the FRA; 2003 California-Nevada interstate Maglev Project, Anaheim to Ontario Study, submitted to the FRA.

The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: info@thebradcocompanies.com

46th Edition of the Bradco High Desert Report  

Inside This Issue During the last quarter, we have now made this newsletter available to over 7,300 Southern California based commercial, in...

46th Edition of the Bradco High Desert Report  

Inside This Issue During the last quarter, we have now made this newsletter available to over 7,300 Southern California based commercial, in...

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