Realtor Jim Klinge says Davidson builds superior properties, and superior properties will not lose more than 5-10% during this downturn. “…. a few examples of superior properties to keep an eye on….Tracts built by Davdison Communities. Typically tracts fall into inferior-properties category, because you’re married to the comps – if there are a couple of low sales of your same model, you’re sunk. But if there was one builder who can beat the odds, it’s Davidson. ”
Jim has great info on his blog, like the comment that tract homes fall faster because you’re married to the comps, or his post about how to spruce up your home because buyers expect a perfect house, or his explanation that you make your money when you buy so avoid power lines or a backyard that people can look down on or being in a flight path. I love his blog.
But that doesn’t mean I agree with his prediction of where the market is headed. The question is: what was the price of the properties he considers “superior”, back in 1999? If we increase those prices by 3-5% annually out to today, what would be the value of those homes? How much do they need to fall to get to that? Also, if superior properties hold their value better, does that mean they are *always* a multiple of 25-35x annual rent, rather than the 8-10x annual rent that has been explained to me? In other words, do “superior properties” defy fundamental analysis today and in the past?
BTW, there are 4 foreclosures on Hospital Way and Highland Dr, and 22 preforeclosures in zip code 92008, 2 foreclosures and 11 preforeclosures in 92010.
