San Diego Housing Bubble News and Analysis

The lots are huge and I believe Cornerstone will work a deal with any buyer. We are currently in escrow at another project in Stonebridge. IMO sales will be slow due to the economy. Any buyer should set a target of less than $200.00 per sq. ft. out there.
Localguy

I like Stonebridge. Great views. Nice location. Poway schools. However:
1. Lots of early owners are underwater big time. Neighborhood stability is years away.
2. High Mello-Roos and HOA fees. $600/month and up are fairly common.
3. Hot summer temps. Cooling a large Stonebridge home could be costly.

Yes, some of the lots are huge and it's hard to imagine that a lot of buyers are wiling to spend a large amount in landscaping in the current economical environment.
If I may ask, in which development are you in escrow?

There are even some knife-catchers sweating. 13348 Shadetree has been on and off the market for over a year after they got is from someone who walked.

For those who have access, it was also featured on OC's blog

This one is way overpriced. The house is situated in front of massive powerlines.

Yes. Did you read any of the history. It's not going to sell. At this rate, it would not sell at what he bought it at.

It's a nice house in the wrong location at the wrong time....
I wouldn't be surprised if they have to lower the price to $900 k before it sells.

"nice house in the wrong location at the wrong time...."

So why is Cornerstone better?

Montoro's homes are lower priced and the location is slightly better (no powerlines).

transmission tower

that flop on shadetree will not find a buyer until it goes down to $700k. every time a potential buyer comes out of that front door he or she will be staring at THAT.

meanwhile, homes on better lots nowhere close to powerlines are going for $800k range in the community.

Sunny,

Are the models open? They were still building the last time we visited.

Sunny I agree with your analysis on Montera. I live right around the corner from Stonebridge and cruise around there alot. If I were to compare it to 4S I like the homes/lots much better. Community wise it is lacking alot. Distress wise I think uniform depreciation will continue to occur. Lots of distress has happened in Stonebridge and more will continue to happen there. However like everything else this spring, we are in the midst of a twilight zone type of rally so I expect decent sales.

The 2 models are open now and 4 homes are under construction. One apparently already sold according to the sales agent.
The backyards of the models are huge and in my opinion a deterrent to many potential home buyers as landscaping will be extremely expensive.

I agree with you, the community lacks a certain degree of attractiveness. The landscape feels very barren and shopping is a hassle. However, some of the homes are very nice inside. I would think that once the prices reach a certain level (i.e. less than $200 sqft) buyers will be more attracted to Stonebridge.

Interestingly, some buyers don't mind poer lines at all. But in general, a large discount is necessary to attract people.

For those who have acess, OC featured Stonebridge

The property was 11540 Edgewood

I really like the larger lots and as a do-it-yourself kind of guy I look forward to the chance to set up the house as we like.
Sunny88, you asked what project. We are under contract at Scripps Preserve. Large, flat view lot.
I agree with other posters that there are and will continue to be distressed properties out there. The prices some people paid are crazy.
Localguy

Scripps Preserve has beautiful homes on larger lots and I think they are a great value.

Yeah I would agree. I am not a big fan of MR fees and will most likly not buy where there are MR fees. However if I had to choose between 4S and Stoney I would choose Stoney due to the lot size as well. It is just a personal choice. Most people I take out to both seem to lean towards 4S because of the more local community structure.

I think that Scripps Preserve is offering the best product for the price currently.
Localguy,
What plan did you get?
I like plan 2. The entryway with spiral staircase is very impressive. I also like the little indoor balcony off the secondary bedroom that looks down into the living room.

I heard Scripps Preserve is all sold out.

No, they still have homes on sale. One of the models already sold.

No additional homes at "Montoro" have sold since our last visit.

The amusement continues. 13348 Shadetree relisted. I mean, they've been trying to sell this since November 2007. They bought in August of 2007. Originally bought for 1,080,000. First listed for 1,199,900. Then he raised the price to $1,299,000 to $1,399,000. Now a new listing.

List Price: $1,329,000
MLS#: 090014349

Gotta give him credit for his persistence and optimism.

The are power lines in front of this house and nobody will even pay $800 for this house.

chiropractors need to stick to cracking backs, not flipping houses.

forgot to pay his property tax back in December too... is the power line affecting his memory?

How many backs does he have to crack to make up for the loss?

good question sunny88

he financed at 90% back in 8/2007, monthly carrying cost (not deductible due to not primary resident) is $8200/month.

so far he has held on for 18 months, so that'll be $147600, $5400 to keep the utility on, water the lawn, and have a gardener come monthly, and assuming $40k for landscaping, that'll be $193,000 down.

let's assume $100/back cracked, that'll be 1930 back cracking sessions.

this is of course provided that he is able to sell at $1.08 million, which is doubtful at this point.

I just wonder if he is delusional since buyers can buy nicer homes in Stonebridge for less and at a better location. The power lines are a big turn-off for most potential buyers.

I have to say that I'm impressed that one has this kind of staying power considering payments to be made on other home and business expenses.