June 2016 H OUSING N EWS R EPORT
real estate agents and brokers in the market often see trends happening about a month before those trends show up in his data. “They know what’s happening before I do because they are on the frontlines,” he said, noting that about 25 percent of the subscribers to his newsletter are real estate agents or brokers. Homebuilders are starting to show more confidence in the Sacramento housing market, according to Campbell. “New home building permits are the most volatile metric of all, and they are up 63 percent year-over-year, and that is the highest of the five major markets in California that I track,” he said, explaining that he views an increase in building permits as a signal of strengthening demand. “Homebuilders, those guys are on the Builder Confidence Climbing
frontline, and they are constantly assessing whether to build more or pull back. And the decision to build more tells you that the demand is there.” Renewed builder confidence is evident to Ron Happe, CEO of Main Street Capital Partners, a Sacramento-based company that invests in real estate notes across the country. “There is land that has been sitting for nine or 10 years that is now being built on, and quite a bit of it now getting to the point of finishing,” said Happe, who was a fix-and-flip investor before starting Main Street Capital Partners in 2006. “Most of what I’m seeing is spec builders or small developments of 10 to 12 properties. … The (big brand name) builders have not been here for 10 years. A lot of them are gone.”
Ron Happe CEO Main Street Capital Partners Fair Oaks, California
“ There is land that has been sitting for nine or 10 years that is now being built on, and quite a bit of it now getting to the point of finishing. ”
Caution on the part of larger homebuilders
Continued Next Page
SOURCE: RealtyTrac
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