I appreciate your insight. I also can assure you that my posts are delivered with insight as well. Let’s assume that the model home in Wisteria Place had $100K in upgrades (and I am being generous here). Since it sold for $875,500 and an equivalent home could be had today for $761,000 ($661,000 plus $100K) it looks more like a 13% discount YOY. But David Lie-reah and Blanche Evans and Appleton-Young said things could only go up?!?!
The point I am making here is this: some poor bastard is pretty unhappy about this (ask them in the sales office) and you said it yourself…the good deals in this community are killing the resales in the next door community. If people only knew how to extrapolate…
We have “summitted” the slippery slope and the downward pressure is ON, big time. As we stopped in on open houses and the models in 4S Ranch yesterday and shared the news of what you could get just 2.5 miles from the ocean (2400 sq. ft nicely appointed home) for $661,000 (new construction no less), the realtors and model salespeople were paying keen attention and they were like…REALLY?!?!
On another note, bugs said it best when he said this price drop in Bressi Ranch is surprising, considering this thing hasn’t begun to go south yet. My aim in distributing this info to the North County Times and UT is to encourage people to wise up, think for themselves, and ask “why would I buy ANYTHING right now, when I know that when sales don’t pick up, I am going to have the re-sale value of my house SEVERELY UNDERCUT by someone else who needs to sell and has a MUCH LOWER COST BASIS than I do?”
Nobody wants to be immediately underwater. Most people do not realize that if they buy today, they are doing so pretty darn near a “generational peak” and they are all immediately underwater with no hope for a life ring.
Think of the poor schmucks who bought those models in Bressi Ranch…what will their houses be appraised for next year and the year after? Nobody should buy in there if they know the builder has a history of dropping prices in there without the crap even hitting the fan!! Geez…
