June '97|October '96|February '96|November '95|September '95
California is Golden Again!Not since 1991 and the beginning of Desert Storm, has California looked so golden. Real estate prices in the South Bay area are moving up with the listing price being the starting point for the bidding of many available homes in the area.
Where else but Silicon Valley can a household with a $100,000 income not be able to afford a home.
In the San Joaquin Valley things are much more, shall we say, stable. Here real estate values have not dropped much during the past few years, nor seldom do the values appreciate at double digit rates.
While the Bay Area appears to have recovered, the San Joaquin Valley tends to lag 12 to 24 months. However, there are signs of increased activity in this area. The demand for office space in the Fresno area has driven vacancy rates along the Herndon Avenue corridor to 5 percent. Fresno as a whole has a 12 percent vacancy factor for office buildings.
Industrial space is showing signs of rent increases for the first time in years. This is a direct result of the overall vacancy rate in the Fresno-Clovis area which is near 4 percent.
While the past few years have been difficult in California, especially for those of us in real estate, the Golden State appears to be sparkling once again.
In the early 1990's the saying was to Survive till 95". Now it appears "We'll be Great in 98!"
From the Highway
Thanks to all who have visited the Scott Appraisal Company Web page. I love your comments and find e-mail a quick method of delivering a message. However, voice communication is vital, because as hard as the Internet tries, business will always be people first.
Keep visiting the Web page, as new features will be introduced.
Da Bulls. Can they do it again? Yes! it's dittos time. Michael and da Bulls will win it all again. Speaking of Michael, did you know that the Leave it to Beaver-ton shoe company (Nike) pays Michael more money annually than all their Malaysian factory workers. Big time Giants June swoon acomin. No more Cubs, Phillies & Reds to beat up on. Try the Rockies, Braves, Rangers & Marlins for the next 30 days. Ouch! Ask the Cubs. Tiger Woods,... $90 million for 3 endorsements. I guess it's OK, at least he's old enough to buy his own beer.
VIP'S IN FRESNO!
I want to introduce a group of which I am a member; the Valley Innovative Professionals. The VIP Group is an organization of leading professionals from diverse industries in the San Joaquin Valley. Our goal is to provide superior service for a variety of needs. Come visit the VIP Group and its members at "www.vipgroup.com".
Wipe the Windows, Check the Oil, Step on the Gas!All lights are green! The Scott Appraisal Company has taken to the highway. The information superhighway! That's right, the Scott Appraisal Company Web (or home) Page is now in place.
You can visit me anytime you are online with the Internet from anywhere in the world. Anywhere! Just type "www.scottappraisal.com". Then once you visit, call, or e-mail me, and let me know what you think. Do you like it? How can it be improved?
My desire is to make this Web Page informative, and easy for anyone to contact the Scott Appraisal Company.
It's amazing the vast amount of information available at our fingertips. Factoid,... in one day we have more information available to us than any person prior to the 1850's had to them in their entire lifetime. It's simply awesome.
As I said in the previous edition of the Scott Appraisal Times, the major downside to the Internet, is personal contact and communication becomes optional. For me, that is a very heavy price to pay. Doing lunch and exchanging ideas around the coffee pot should always be a part of business in America.
In the meantime, step on the gas, hit the highway, and visit me on the World Wide Web!
I've missed you all, or as they say in the south, "y'all". Here's the latest wit & wisdom from the Rurik Barcalounger. (Norm Peterson would be proud of my choice of furniture). Anyway, baseball,... the Braves over the Indians in 6 games. But then again, nobody cares about baseball. The 49ers lose to the Green Bay (Meat) Packers in the NFC Championship game, which should be the real Super Bowl. Then there is no game 2 weeks later, because the AFC team refuses to show up and be embarrassed again.
California Real Estate on the"Buy" List!One of the hottest real estate topics these days is the comeback of California real estate. After five years in the doldrums, many professionals suggest the Golden State is once again golden.
Optimism arises from recent economic and employment growth, carrying new housing and investment opportunities. While the state lost 4.2 percent of its jobs between 1991 and 1993, a reversal has occurred and California anticipates 1.9 percent employment growth through 1997.
That's modest growth for the short term, but don't forget California has 32 million residents and 12 million job holders. This is the largest of the 50 states and is the sixth largest economy in the world. Further, when the employment transition is complete, from aerospace and defense related industries to other sectors, California will likely show robust growth.
Sources: Ernst & Young's "Real Estate Journal", and "Market Watch".
Scott Rurik Profile-A Continuing Series
January's visit is nature's annual reminder for us to go calendar shopping, and to size up our 1995 goals. My 1996 resolution is once again, the Scott Rurik Diet & Exercise Program. This year, however, is different. Really. Looking at my photos from Hawaii last November, I notice d some guy, I didn't recognize, sitting on the beach with my wife. He wasn't me. I don't look like that! Oh well, maybe rice cakes don't taste that bad.
As I write, the Cowboys are preparing for the Steelers in Super Bowl XXX. I'll stand by my early pick, and say the 'Boys will triumph, equaling the Niners with most Super Bowl rings. Biggest impression of the NFC Championship game has got to be Michael Irvin. Class appears to be his stranger. On to more pleasant topics, the Bulls look awesome at 31-3. And finishing on a personal note, after a five year absence I ventured into a bowling alley and rolled a personal record, 208. Who says things don't get better with age!!!
Fresno Building is Booming!In August 1995, the value of the building permits processed by the Fresno City Development Department was at the fourth highest level for any month since 1991.
New home permits let the way, as many first-time buyers have been waiting for interest rates to fall. Permits were also issued for 162 apartment units, the highest number of units in 1995. Commercial real estate also contributed to the value of new construction in Fresno.
No one in the building community, or the City of Fresno would comment as to whether the trend for new con struction is expected to continue throughout the remaining months in 1995.
Source: Fresno Bee
Scott Rurik Profile-A Continuing Series
Why Appraising? There are two ways most people become an appraiser. First, your father is an appraiser. Hands down, this is most common. And second, you fall into it. Very few people set out to be an appraiser. Which am I, you ask? Here's a hint,... I had just graduated from college with no money and no job. RIGHT! I happened to walk in the door of Great Western Bank at the moment they were accepting applications. I guess I lucked out!
Home Resales SlowWhile new construction is strong in Fresno, home resales remain slow. According to the Fresno Multiple Listing Service, it takes an average of 134 days to sell an existing dwelling. This is consistent with 1993 and 1994. However, it is up considerably from 1991, where the average market time was 105 days.
Football's heating up! The Cowboys are in full stride & look in' tough.And so are the Raiders. (Remember the Raiders, LA?) The Niners... losing to New Orleans AND Carolina. It's Full speed reverse. Not good. Sorry Gloria.Predictions (for what they're worth) Cowboys. A no-brainer. Hoops, the Bulls, & on the Ice, here's a long slap shot, the Colorado Avalanche. Baseball? thankfully, it's over. What about Art Modell & the Cleveland, now Baltimore Browns? Personally, if someone dropped $60 million in my lap, I'd have to think about, too.
Fresno Commercial Real Estate Remains ActiveWhile commercial real estate activity in California remains sluggish, Fresno bucks the trend. Across the board, commercial real estate in Fresno shows signs of strength and growth.
Recent office surveys show the overall vacancy rate in the Fresno-Clovis area down to 1 2.7 percent.
The retail market shows strength with developments underway along the West Shaw Avenue corridor, in Clovis, and North Blackstone Avenue. Last month construction began for the 100,000 square foot River Park Shopping Center bordered by Blackstone and Highway 41 in north Fresno.
The industrial market remains one of the strongest sectors of real estate in Fresno-Clovis. Recent surveys indicate overall vacancy below 4%.
Another positive note is, according to the ACCRA Cost of Living Ind ex for the first quarter of 1995, Fresno had the lowest cost for the nine largest metropolitan areas in California. With the U. S. average at 100, Fresno's cost of living was 105.8, compared to 122.0 for Los Angeles & 121 for San Francisco.
Overall, through the first six months of 1995, the Fresno commercial real estate market appears to be one of the healthiest in the State of California.
Scott Rurik Profile-A Continuing Series
Scott was born in Chicago, Illinois, but has lived in Fresno since 1968. His family history in Chicago explains his unusual love and devotion to the Chicago Cubs. In fact, his great uncle was a grounds keeper at Wrigley Field in the 1920's and '30's. Scott married Julie in 1984 and they have two handsome boys, Andrew and Austin.
Next Month: Why Appraising?
Well, the baseball pennant races have heated up, but I still cannot support what's left of the game. Remember last season's strike? Nothing was settled. They simply agreed to "talk" later. Thank God football has started! And I love Monday Night Football, which could be even better, if they'd dump Dan Dierdork. And from the "Only in America" department,...How about that Mike Tyson guy? Where else could a convicted felon walk out of prison and earn a $289,000 per second paycheck?
Scott Appraisal, Inc.
453 Pollasky Ave. #106
Clovis, California 93612
Telephone: (559) 324-8221; FAX: (844) 272-1432