Five things at play

1. Law of diminishing returns
2. land cost being equal
3. demographics
4. building costs
5. Current energy costs and ucertain future

Smaller homes on the same size lot of larger homes cost more per square foot to build because the land cost is equal. Older people, single people, people with disabilities, injuries, etc. need or want smaller homes or single stories. Single stories are more efficient and the sq ft of the stairs is wasted sq ft.

A two story 3000 sq ft and a one story 2000 sq ft (both found in morgan) both have the same roof, foudation, concrete, kitchen, plumbing, driveway, etc. The extra 1000 sq ft is often “dry” space and the costs of the extra lumber and stucco are less than the initial costs. ppsf has always increased as homes get smaller but with energy costs on everyone’s minds these days, I think they will be hit even harder. Regarding morgan in particular, 2000 or 2100 sq ft is the smallest they have, that is fine for many people, fewer people need or want 4000 sq ft so the price decreases per sq after 2000 based on supply and demand, sellers don’t set the price, the buyers do. Fewer people want the big one today with energy and carrying costs increasing, just like fewer people want Ford Excursions.

Five things at play

1. Law of diminishing returns
2. land cost being equal
3. demographics
4. building costs
5. Current energy costs and ucertain future

Smaller homes on the same size lot of larger homes cost more per square foot to build because the land cost is equal. Older people, single people, people with disabilities, injuries, etc. need or want smaller homes or single stories. Single stories are more efficient and the sq ft of the stairs is wasted sq ft.

A two story 3000 sq ft and a one story 2000 sq ft (both found in morgan) both have the same roof, foudation, concrete, kitchen, plumbing, driveway, etc. The extra 1000 sq ft is often “dry” space and the costs of the extra lumber and stucco are less than the initial costs. ppsf has always increased as homes get smaller but with energy costs on everyone’s minds these days, I think they will be hit even harder. Regarding morgan in particular, 2000 or 2100 sq ft is the smallest they have, that is fine for many people, fewer people need or want 4000 sq ft so the price decreases per sq after 2000 based on supply and demand, sellers don’t set the price, the buyers do. Fewer people want the big one today with energy and carrying costs increasing, just like fewer people want Ford Excursions.

Five things at play

1. Law of diminishing returns
2. land cost being equal
3. demographics
4. building costs
5. Current energy costs and ucertain future

Smaller homes on the same size lot of larger homes cost more per square foot to build because the land cost is equal. Older people, single people, people with disabilities, injuries, etc. need or want smaller homes or single stories. Single stories are more efficient and the sq ft of the stairs is wasted sq ft.

A two story 3000 sq ft and a one story 2000 sq ft (both found in morgan) both have the same roof, foudation, concrete, kitchen, plumbing, driveway, etc. The extra 1000 sq ft is often “dry” space and the costs of the extra lumber and stucco are less than the initial costs. ppsf has always increased as homes get smaller but with energy costs on everyone’s minds these days, I think they will be hit even harder. Regarding morgan in particular, 2000 or 2100 sq ft is the smallest they have, that is fine for many people, fewer people need or want 4000 sq ft so the price decreases per sq after 2000 based on supply and demand, sellers don’t set the price, the buyers do. Fewer people want the big one today with energy and carrying costs increasing, just like fewer people want Ford Excursions.

You are also going to have to break Morgan Valley out of the Morgan hill numbers in any comparison because they primarily sit on 1/3 to 1/2 acre lots, not fair to compare them to 7000 sq ft lots, also the morgan hill ones in Ventana are also on huge lots and have R.V. garages, I think they are over a half acre and are so upscale inside it’s not fair to compare them in ppsf, you might have to put them in the morgan valley group. The problem with the valley and the ventana homes is they are more like customs, the backyards can be worth more than the morgan tract homes so that is another x factor. Here is an example on a ventana listed at over 300 per sq ft. It is way overpriced, maybe not quite double, but look at the pictures, you cant compare it to the second link just because of the lot and the level of improvements.

http://www.redfin.com/CA/Temecula/44664-Frogs-Leap-St-92592/home/6644068

and this repo in a more tract like setting at 120 a square

http://www.redfin.com/CA/Temecula/45197-Broman-St-92592/home/6570845

But I love the effort and the data, break it into two groups, maybe under and over 1/3 acre lots or into tracts.

You are also going to have to break Morgan Valley out of the Morgan hill numbers in any comparison because they primarily sit on 1/3 to 1/2 acre lots, not fair to compare them to 7000 sq ft lots, also the morgan hill ones in Ventana are also on huge lots and have R.V. garages, I think they are over a half acre and are so upscale inside it’s not fair to compare them in ppsf, you might have to put them in the morgan valley group. The problem with the valley and the ventana homes is they are more like customs, the backyards can be worth more than the morgan tract homes so that is another x factor. Here is an example on a ventana listed at over 300 per sq ft. It is way overpriced, maybe not quite double, but look at the pictures, you cant compare it to the second link just because of the lot and the level of improvements.

http://www.redfin.com/CA/Temecula/44664-Frogs-Leap-St-92592/home/6644068

and this repo in a more tract like setting at 120 a square

http://www.redfin.com/CA/Temecula/45197-Broman-St-92592/home/6570845

But I love the effort and the data, break it into two groups, maybe under and over 1/3 acre lots or into tracts.