San Bernardino County Not Recession-Proof: Wishful Thinking Won't Work

by: Steven R. Smith

I read an article Thursday in which the manager of Tarbell Realtors in Upland, CA was quoted as saying "At this point, at least, San Bernardino County housing is recession-proof." - Bill Velto.

This is so wrong, it flies in the face of ALL the housing data. Resale prices have been going down in the County and in Upland for over a year, double digit in some areas. Oversupply conditions exist in most markets with some having over a 3-year supply.

Concessions and cash-back deals are helping prop up prices, but on a $/SF basis, they are indeed going down throughout the two County Region known as the Inland Empire. Wishful thinking will not make it go away.

Credit Suisse reported that as of the end of the 1st Quarter, the region's new home market was downgraded from a D+ to an F. Many builders have stopped building because they are selling less than 2-homes per month, not enough to support the development holding costs.