In 1992, I bought a home as the market was crashing for $350k from the developer, to keep the prices “up”, and this in an area much more desirable than Temecula.
After closing, I was given a cashiers check for $50k.
At the time I was young and simply thought that was how it worked.
Think that isnt happening or wont happen now?
McMillin is cutting deals right now, have been for awhile, and those prices above are for suckers, and they use it as a sales tool when they offer a serious buyer a deal.
In regards to Morgan Hill, Did you already forget the REO’s that were listed under $120?
I had 3 homes in Morgan Hill at different points, and even in the market peak, many were freaking out because they couldn’t afford their homes. And when we left the last one, there wasn’t a neighbor not feeling the pain and freaking out.
Go back to one of my old posts and watch the LA NBC channel 4 report and see how a Morgan Hill street was panicking months ago. Think they feel any better now?
How about on Tudal, houses dropping and then you got your neighbor with the astroturf? Not fake grass, astroturf front lawn.
Just because many there in Morgan Hill got screwed, and paid 600-700k, and some more, doesn’t mean they are not going to lose their shirts.
Don’t you think the former Greystones just down the street and older rundown Redhawk areas a block away won’t have an impact? You can buy a 4000 sq ft Greystone right now for 400k.
Also, you failed to mention that those same Blackstone homes, some sold for $700+. I have a friend who offered $600k for the plan 3 and was laughed out of the office not to long ago. Now they’ll take a shade over 500k for that. How about in another year?
And what happens when the McMillin sons decide to off the hundreds of graded lots on the cheap, the so called Phase 3 of Morgan Hill?
McMillin claims that they are private and not subject to the same pressures as the public builders. True, but their pockets aren’t as deep, and their holdings are SD based and tell me that market isn’t hurting.
If they decide to get out, and pull the trigger, they will dump all those empty lots to KB, Centex, or some other low end builder and just watch. Not to mention auctioning off what’s left.
The real auctions, not the BS ones that are on now, but when the market gets to the point where the blowout auctions occur as they did in the mid 90’s (in primo areas mind you) that’s when you know we are near the bottom.
