Well I have been wondering how long it would take the county and Sheriff’s office to get to the rural communities of Aguanga and Anza regarding Cannabis. Since the County of Riverside finalized their ordinances in December 2018, they set the stage for the legal and non-legal growing. The ordinances set up a clear picture of where the growing was to take place legally and it wasn’t in the rural residential areas. But the growers back in 2015, 2016, 2017, 2018, and 2019, where not deterred and I guess quite frankly didn’t care. Now granted those that acquired large secluded parcels prior to December 2018, where putting their money on the pass line and where hoping it would come up with a 7 or 11 (for those familiar with craps). But instead the ordinances were essentially craps, snake-eyes, three or 12. So they loose there money on the pass line. But they decided to keep on growing. Well about three weeks ago there was a raid on about 50 to 100 properties depending upon whom you speak with. I did not go to the sheriffs to confirm the count, but suffice it to say they made a statement with their raids and arrests. Now how does this impact values. Well when you seen 20 and 40 acre land sales that are a long distance from paved roads selling for more than those that are close to pavement, electricity and civilization, then you know there is a weird impact on Real Estate pricing. In the aftermath I spoke with four agents from up in the Aguanga and Anza area and asked what they have seen since the raids. Three indicated things got quite for about three weeks and the fourth said he thinks he will keep selling to growers. Now this last comment seems a little unusual as the growers coming into the area have to know, at least I hope they do, that the county ordinances specially indicates, Rural Residential and Rural Agricultural zoned properties are not allowed to have commercial growing operations. Now there is a bigger list than this, but just to get the general gist of what is going on. So for three weeks the usual buyers were not showing up after the raids. So not sure what that means at this point, but if it makes some coming to the area stop and pause then it could decrease the volume of land sales currently. What my bigger concern is that they decide to sell their parcels and move on. If that happens then it could increase an already oversupplied land market and put downward pressure on pricing, especially for the larger secluded parcels. My thought would be that if that occurs, the buyer profile will change and now being 5 to 6 miles off paved road and 2,000 ft from power will and should impact the land pricing. All of this could create some issues in the Aguanga and Anza market. Now I am not predicating doom and gloom, but it is important to watch the land sale market over the next six to nine months and see if there is really any change in the buyer attitude and seller mentality of I have to get out. Only time will tell but for those in the general market or thinking of looking out there because of affordability, then they should keep an eye on pricing, days on market, and inventory levels.

Thanks for your time today and I hope that you enjoy the upcoming Fourth of July holiday.

Take good care, Brad Bassi, SRA (909) 262-3434