- This topic has 40 replies, 12 voices, and was last updated 16 years, 9 months ago by
SD Realtor.
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June 19, 2007 at 11:29 AM #60447June 19, 2007 at 11:29 AM #60480
SD Realtor
ParticipantSchizo –
I know it is a really tough spot to be watching and waiting and not see the price reductions that many people think will happen. Deep down I do believe they will happen. Maybe sooner, or maybe later, but I think they will. They also may not take the form of a new home from the developer but of a foreclosure or a distress sale. So far the resellers of homes in 4S are not coming down in price. Eventually though I believe they will. It just may take longer then you want to wait.
What I cannot do is make the ironclad gaurantee that it will happen in a month from now, or a year from now, or 3 years from now.
Like you I am going to have to buy sooner then I want to but I am holding out as long as I can…
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Schizo if you are going to pony up and sign the contract make sure you are clear on the financing aspect, whether you will float the loan or not, etc… I am sure you saw the threads last week on this subject. The good news is the 10 year has come off its high of last week. The question is, will it start to reverse the trend it has been in since March.
SD Realtor
June 19, 2007 at 11:30 AM #60449recordsclerk
ParticipantThe reason why these new homes are selling is because the builders have to sell them. They will continue to lower prices until all their units are sold. They will sell the homes for whatever the current market will allow. There will always be new homes for sale as long as builders can make a profit. Once we get to the break even point for builders, the master planned communities will have to lower the price of land to make it profitable for the builders. Everyone involved with builders making a profit will have to lower the prices. Materials, Labor, Fees, Land, Commissions. This will continue until people can afford homes or demand picks up.
June 19, 2007 at 11:30 AM #60482ParticipantThe reason why these new homes are selling is because the builders have to sell them. They will continue to lower prices until all their units are sold. They will sell the homes for whatever the current market will allow. There will always be new homes for sale as long as builders can make a profit. Once we get to the break even point for builders, the master planned communities will have to lower the price of land to make it profitable for the builders. Everyone involved with builders making a profit will have to lower the prices. Materials, Labor, Fees, Land, Commissions. This will continue until people can afford homes or demand picks up.
June 19, 2007 at 11:48 AM #60455PD
ParticipantAlex, I’m going to give you the benefit of the doubt and decide that you are being sarcastic rather than sincere.
June 19, 2007 at 11:48 AM #60488ParticipantAlex, I’m going to give you the benefit of the doubt and decide that you are being sarcastic rather than sincere.
June 19, 2007 at 11:55 AM #60459ibjames
ParticipantNo, Alex really believes there is no more land. The house across the street from me was torn down and a big condo complex was built, those people didn’t get a new place I guess.
June 19, 2007 at 11:55 AM #60492ParticipantNo, Alex really believes there is no more land. The house across the street from me was torn down and a big condo complex was built, those people didn’t get a new place I guess.
June 19, 2007 at 12:01 PM #60461sdcellar
ParticipantHeck, it will be interesting to see if even just 4S is finished in 3 years…
June 19, 2007 at 12:01 PM #60494ParticipantHeck, it will be interesting to see if even just 4S is finished in 3 years…
June 19, 2007 at 12:07 PM #60463ParticipantSDR– Resellers are definitely coming down in price in 4S. Sure, there are still a lot of wishing prices, but there are others that are priced to either compete with new, or at least less than what similar properties were listing for last year.
(and I know you know your stuff. I just follow this area very closely)
June 19, 2007 at 12:07 PM #60496ParticipantSDR– Resellers are definitely coming down in price in 4S. Sure, there are still a lot of wishing prices, but there are others that are priced to either compete with new, or at least less than what similar properties were listing for last year.
(and I know you know your stuff. I just follow this area very closely)
June 19, 2007 at 1:16 PM #60481ParticipantSDC I agree with you 100%, they are coming down. Most of the regulars here know that the builders have no emotional attachments and a higher margin to work with and they will always be able to undercut the resellers. Also that the builders squeeze the number of homes per phase release AND they slow down the phase releases to limit the supply thus creating an appearance of more demand. You called it correctly and I anticipate the trend to continue.
So yeah maybe buyers will not get the house directly from the builder and maybe it will not be brand new, but they may be able to get the “2 year old pre-owned model” at a nice discount if they hang out for a spell…
SD Realtor
June 19, 2007 at 1:16 PM #60514ParticipantSDC I agree with you 100%, they are coming down. Most of the regulars here know that the builders have no emotional attachments and a higher margin to work with and they will always be able to undercut the resellers. Also that the builders squeeze the number of homes per phase release AND they slow down the phase releases to limit the supply thus creating an appearance of more demand. You called it correctly and I anticipate the trend to continue.
So yeah maybe buyers will not get the house directly from the builder and maybe it will not be brand new, but they may be able to get the “2 year old pre-owned model” at a nice discount if they hang out for a spell…
SD Realtor
June 19, 2007 at 1:17 PM #60483Bugs
ParticipantCompared to areas farther north, 4s still has a great location relative to employment. I never would have expected it to be among the initial wave of losers. It’s “Temecula day” will eventually come, I just don’t expect to see it for at least another year, maybe 2 or 3.
Carmel Valley is even more convenience to employment, so I think CV will hold out longer than that.
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