we went to La Costa Greens in August 2005, one particular builder was just starting phase III. We went back at end of May 2006, guess what, they are STILL in phase III. Each phase has… 6-8 homes? 10 months and they are still in the same phase!! What are they doing on price? The same model that they were asking $840,000 for they are now asking $780,000’s. But there’s more, they are throwing in another $20,000 in upgrades. So really, you’re looking at $80,000 price reduction, that’s 10% off!! And it’ll only get worse! What’s so ironic about this is the huge sign right outside of La Costa Greens actually says, “a community starting in the $800,000’s.”
Bressie Ranch. airplane noise galore. In a down market it will be very hard to get rid of, especially with the high MelloRoos and HOA on top. That is why the builder has been offering huge discounts. I’ve seen $150,000 – $200,000 off on certain models. Adding in lender incentive, there are 2300 sqft homes there for $590,000!! The strategy is working, homes are selling there. Their goal is to get out by November 2006, I think they can do it.
San Elijo Hills. very high Mello Roos of 1.75% is going to be a problem. Plus there are still communities just coming on board. One particular one is slated to build 160 homes and they are just starting out in phase I!! They are pricing in the low $700,000’s for mid 2000 sqft homes. After this year is done with, I won’t be suprised if they lower their prices into the high $500,000’s. There are actually 3 communities that are all in very early phases that will run into problems. (a lot of them have 16-17 phases in all!!)
As for the school, up to middle school you will be safe given the building of San Elijo Middle School. San Marcos High is a big worry. But they just opened up Mission Hills High for students from the East side of San Marcos. I imagine that will make things better?
After seeing all this, we are waiting as well. DO NOT BUY!!! Let things drop!
