The median sales price for homes in LA in August was $450,000. That’s not quite the nosebleed section like San Francisco, but it’s still more than twice the country’s median price. Standard Pacific Homes (SPF) was founded in Southern California in 1965 and currently generates more than 50% of its revenue from the California market. Unfortunately, most of its other revenue comes from Texas, Florida and the Carolinas. While it might make a good investment, it doesn’t necessarily apply for the purposes of this article because it has little or no business in Arizona and Nevada.
An interesting possibility not readily apparent to the average investor is Weyerhaeuser (WY). The Seattle-based real estate investment trust that has its hands in virtually everything to do with forests — including the development of real estate. The Weyerhaeuser Real Estate Company generated $870 million in 2012 from the sale of 2,659 homes at an average price of $376,000. In terms of future development, it has 17,844 lots in California, 1,477 in Arizona and another 1,683 in Nevada. Operating through Maracay Homes, Pardee Homes, and others, it has all five cities covered. Due to WY’s diversified businesses, it’s a great long-term hold.