As we head into the holidays, and a historically slower time of year for the real estate market, we are in good spirits here at the Rancon Group and seeing good signs ahead for the area’s economy as we make a steady recovery.
There is no doubt that the region has undergone a major recovery from a very difficult recession, and that is great news. There is still a ways to go for the Inland Empire however, according to Jordan Levine, an economist from Beacon Economics, who made a presentation at the Inland Economic Summit in Riverside on October 29.
Levine told the audience, “Jobs are coming back, homes are recovering equity, and people are getting more into a spending mode.” Levine and his colleagues at Beacon are optimistic about the next few years in the Inland Empire, which is good news, because they haven’t always been so positive. In 2005, Beacon founder Christopher Thornberg, predicted a severe recession based on sky-rocketing home prices that were driving an economy that was “unsustainable.”
Unfortunately his prediction was correct. Luckily, in Southwest Riverside County, the economy wasn’t quite as bad as in other parts of the Inland Empire. In fact, during the recession several major transportation projects were given the go ahead creating good jobs for the area. Today, many of those projects are well underway and have been, or are about to be, completed in our area bringing the infrastructure needed for future development.
The Housing Market
We all know that the residential housing market is one of the key drivers of the Southern California economy, and the fact that it has improved dramatically during the past year has the experts all looking forward to 2014. In his presentation in October, Levine said that the Inland Empire will regain its status as one of the growth regions in the nation. The Inland Empire, according to Beacon, ranks fourth in price appreciation in California’s metropolitan statistical areas (MSA).
Levine noted that prices of new and existing homes in the Inland Empire will continue to rise by more than 20 percent in year-over-year comparisons next year. He predicts that rate of appreciation will last until early 2015.
With new infrastructure projects being completed and a continual rise in jobs in the area, Southwest Riverside County is well on the road to recovery. Steady as she goes.