Big reduction in Carmel Valley

[SDbear]

MLS #: 066034176
MLS #: 066034153

Seems like they had a huge price reduction (~70k) on the 21st. The listing price now seems to be below most other listings of comparable size. They are listed under Zip:92130 and as being built in 2005. Does this address really come under Carmel Valley zipcode and school district? Is this really a new construction or a conversion?
Seems like the listing is by the builder. Is this the start of big mark downs by the builders or is it just an abberation? Anyone know more about this community?

[Daniel]

Yes, this is the Airoso development, and those units are listed by the builder. There are also some flipper units on the MLS, but they are now suudenly priced $100K too high…

[PerryChase]

I visited that development just this week. And yes, it’s a listing by the developer, Standard Pacific Homes. The price is still too high. I think that at this point they’ll take an offer of $480,000. $500,000 is the psychological barrier they don’t really want to cross because that will get previous buyers very angry.

[Daniel]

PS: the flipper unit is MLS 061031750.

PPS: the area is brand new, and yes, it is Carmel Valley (just off 56 at the Carmel Valley Road exit). There is a lot of construction coming down the pike in that area over the next 5 years (the Pacific Highlands Ranch master planned community, with a dozen subdivisions or so).

[mrquoi]

They look nice. I’d make an offer for $350K if I thought they’d take it 😉

[jabrwoki]

I have been following that area for the last year as well. They were initially priced around $600k last Dec. After trying to throw in meaningless incentives like 3 of 5 incdentives like Plasma TV (cheap EDTV at that), epoxy flooring for garages, HOA fees for 6 months etc. looks like they finally got the message and lowered the price. Even though it looks tempting now they still have high HOA and tax rates for the area. Good schools though. I would second mrquoi’s offer which seems about the right price for that neighborbood (Just 4 years ago single family homes were around $400k in Torrey Hills which is much closer to I5). Let the carnage begin !

[an]

I too have been following that development since they first started. That model started out in the mid 500s, around 560k or so. Then they raised it to 580k. I went there a couple of weeks ago and talked to one of the agent. I asked her if there’s and incentives right now. She mentioned the typical like 6 month HOA, etc. I then pressed on if there’s any negotiation in price. She then asked me when can I closed, once I told her I can closed w/in 30 days, she say there are some deal available right now. I guess she was referring to these. Also, the listing price now for those are around 530-540k I think.

I like that area and that size home as a starter home. However, I would not pay much more than 350-400k for them either. We’ll see how far and how fast this house of cards crumble.

[equalizer]

Oh, hurt me!
down anywhere from 60k+24k(4%)at 600K sale (84K)
or up to 100K +24K at 550K sale (124K). (its 4 bedroom, not 3 like builders listing)

Alan Gin and John Karawhocareswoll of DataQrcook(trademark of the Equalizer):

I listened to you guys saying that no recession, no loss in real estate. Real estate is up 1% YOY, but I’m sitting on
on an 80-120K loss. Can you recommend a good bankruptcy attorney or better yet, will you buy my house at my cost since no loss in equity is possible?

Sincerely
F***d borrower

PS
Powayseller is not the only one who can whip em…

http://www2.sdcounty.ca.gov/ARCC/SalesSearch/search_detail.asp?pb=305&pp=190&pn=14&pi=34&sd=12_23_2005

Parcel Number: 305 190 14 34
Property Location: 06132 MYSTRA PT
Purchase Price: $662,383
Living Area: 1,572
No. Bedrooms: 4
No. Bathrooms: 2
Document Number: 1102335
Document Date: 12/23/2005

[PerryChase]

Hi Equalizer, how to you search the County Recorder’s site for sales information? It did not look self evident to me and I haven’t figured it out yet. Thanks.

Looks like there’re be many unhappy homeowners in this development. The developer is selling for $507k and this owner bought for $662k. With commision and sales cost, it looks like about $200k loss to me. If this was flip, you have holding costs too. Yikes…

[zk]

Pardee Homes’ Arabella development (very close to Airoso) also has some homes listed on the MLS, some of which have been reduced after staying on the market for a while.

[SDbear]

MLS #: 066034153 is off the listing (I’m looking at Ziprealty). Did someone bite the new price?

[PerryChase]

MLS #: 066034153. Don’t worry, it’ll be back. I suspect it’s off the MLS because it was priced at $507k, below prices of $530k at the development and might affect their sales efforts. I don’t believe it was a “real” listing but simply a ploy to create traffic at the project.

Considering that developers pay 5% broker coop, I think any potential buyer who wants a new house now, can easily offer 10%-20% below the asking price. But why would he want to do that when he can get it at an even lower price later?

I also noticed that flipper in new projects are in world of trouble since the developer is undercutting them by offering incentives. Flippers need to get real and price 5-10% below developers in order to unload their albratrosses. And that, in turn, will prompt a response from the developer creating a downward spiral.

[Daniel]

Carriage Run (another Pardee development, very similar to Arabella, but on the south side of 56) has just started to list on the MLS as well (no price cuts yet).

And speaking of Arabella, there is at least one flipper unit there as well, also priced about $100K above the buider’s new price.

[Daniel]

Yeah, Equalizer, how do you get that info? There are a few more flippers in Airoso that I would like to look up.

Thanks,
Daniel

PS: nevermind, I think I got it. It doesn’t work for all addresses, though.

[Daniel]

At Arabella, MLS# 061049542 (plan 1) is listed at $775K-$850K (down from $795K-$850K). Since the builder is selling plan 1 units in the low 700s, I can’t quite see how that sale is going to work. Purchase price on 10/12/2005 was $848K (thanks, Equalizer!).

[Author]

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