Resellers can afford to hold on longer because they don’t have quarterly earnings target to meet. It takes several years of a down market to wear-down existing homeowners.
There’s also a good chance that builders will pay the Mello-Roos in new projects. See related thread:
The LA market is stronger than San Diego’s yet you’re seeing this kind of change there. My feeling is that builders won’t drop Mello Roos in existing developments. They’ll close them out then start new projects next door that interestingly don’t have Mello-Roos to avoid upsetting existing homeowners. Can’t wait to see when that happens in San Diego.
