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Home Sweet [Second] Home

The residential real estatemarket in the Inland Empire posted steady gains to begin 2017. Year-over-year gains also outshined the State’s 8.3% increase over the same period. Sales of existing homes also increased during that time, with 14,840 homes sold in the first quarter of 2017 on a seasonally adjusted basis, 7.5%more than in the first quarter of 2016. The California Department of Finance estimates close to 729,000 Single and Multifamily Units in the County. The California Association of Realtors estimates themedian home price for Q22017 as $380,00 in Riverside County and $269,640 in San Bernardino County. While higher than some areas outside of the Southern California Region. According to a February 17 news release fromCAR: “In Southern California, an influx of buyers fromcoastal employment areas into the

Inland Empire drove healthy year-over-year sales in Riverside and San Bernardino.” Over the last three years, ownership rates grewby 5.5percentage points, reaching over 61% in thefirst quarter of 2017. With this growth, homeownership rates are near national levels (63.7%) and well above ownership rates in California overall (55.1%). Strong demand for single-family homes has fueled building permitting activity. Single-family home construction in the first quarter of the year hit its highest level in 9 years in the Inland Empire, at 2,182 units. This represents the greatest number of units built since the first quarter of 2008 when there were 2,242 units constructed. The substantially higher pace of activity in both the first quarter of

this year and the fourth quarter of 2016may signify amuch- needed increase in single-family home construction. During the first threemonths of 2017, single-family permitting in the Inland Empire totaled 2,164 units, a 14.5% yearly increase. Permitting for multi-family residences totaled 722 units during the period, a 7.8% increase over 2016. With strong demand for housing and with strong gains in employment in the Construction sector, continued gains in permitting should not come as a surprise.