DR Horton Slashes prices $100k in Murrieta, Menifee, Wildomar and more in …

[hipmatt]

DR Horton Slashes prices $100k in Murrieta, Menifee, Wildomar and a bit less in Moreno Valley, Chino, N. Orange County, etc…

My buddy at work is buying a DR Horton home in the Temecula / Murrieta area… the sales office just announced $100k off of some of the homes in two communities here.. They are called Biarritz and Latour…
website here, but does not reflect the new pricing..

http://www.socaldrhorton.com/

Anyways for example.. the house he is getting is 3750sqft… was $521k, now $421k w/ granite, stainless appliances, dual ovens, cat5, etc plus an additional $10k in closing costs for a total of about $110k off!!!

Now my buddy knows how I feel about housing, but he is a really good guy w/ lots of kids, and is putting down about 65%, so for him I feel this purchase is OK. He accepts the fact that the equity he has may dwindle. After all, owning a home in the IE is what got him this equity. He however, has been smart, and lived below his means, never refi-ing to keep up with the Jonses, all on one very modest salary. His mortgage will be about $1375 per month including taxes and ins. on a RESPONSIBLE 30 year fixed loan.

As good of a deal as this may seem to some, I think it is more a sign of the IE housing dilemma, and is a sign of whats in store for us just around the corner, as there are still so many builders building up here, and so much inventory from both new and resale…

The Tem Valley, with its huge housing boom, high speculation, crowded streets, lack of high wage earning jobs/employers, and fuel prices climbing is a house values nightmare.

I, like many here, don’t see the end of the correction anywhere in site yet, so they will have to keep on dropping for me to even think about buying. The funny thing is, the homes are still at least 6 months to a year out from completion and Lennar is about to start a massive building up in this same area which will only further boost supply, thus dropping prices.

Also Windstone Ranch in Wildomar, and Lexington in Menifee both by DR Horton slashed prices $100k as well.

[paranoid]

Hipmatt, interesting info. do they have any new homes promotion in San Diego?

[blahblahblah]

Sounds like your friend has done it right. If they enjoy the area they should be very happy there. That’s pretty close to $100/sf — not bad! Hopefully we’ll be seeing some deep discounting closer to SD in the next couple of years…

[capeman]

Nice! There’s going to be a lot of owners in the area pissed at those comps. Good for him though. He lives there for 10-15 years and he’ll be lovin it while those around him are just starting to knick into their principle. At that point he can make some nice upward moves.

[temeculaguy]

I wish some of that would spread just a few miles south to Southern Temecula. I visited DR horton’s Temecula lane just a few weeks ago and wrote about it on another board. They were easily 50k overpriced compared to other builders a few hundred yards away and the other builder had a better location. I will check them out again on Friday and see if they have changed their pricing but since their models aren’t even finished so desperation hasn’t set in. It’s only ten miles from your buddy and 399 would buy you 1800 sq ft. 3/2 on a mini lot with a mini driveway you can’t park a car in, no upgrades, no incentives at all. It’s only ten miles from your buddy and the same builder.

DR needed a reality check, Temecula lane is selling a 1500 sq ft ATTACHED triplex with no courtyard for 360k and walk a mile down the street to woodside you could get a detached alley house 2100 sq ft, moderate yard, no mello roos, lower taxes, cheaper hoa, granite, pick your cabinets free and a bunch of other things for the same price (and the woodsides are not selling). Even if they matched the 20% reduction of their other projects, they would only match the competition. I think your buddy did well, nice fundamentals and a great mortgage, I hope that can spread just a few more offramps south.

[waiting hawk]

Ur buddy did it right. Don’t think about it like how much he could save in future think how much saved since 05. With that much down, kids, and living there for a long time he made out very nice. Tell em a big housing bear said great job.

[Cow_tipping]

DrH in sacramento was very agressive with discounting sheite that didn’t sell … which was pretty much everything.
Cool.
Cow_tipping.

[kev374]

those neighborhoods are worthless and severely overpriced anyway. Houses that used to cost $75k there in 1997 now cost $400k and they slash it $100k.. not too exciting, they need to slash it like $250k for it to even be a reasonable deal considering that it is the boon docks!

[23109VC]

my wife is looking at these houses in Murrieta as I type this.. 🙂

we have a standing offer to buy our 1900 sq ft home in Harveston for $350k. heavy upgrades, full landscaping, great yard..and personally we really like Harveston. nice parks, nice little lake, nice community pool… yeah you pay $120/month for HOA…but the overall community looks/feels nice. and the lcoation in relation to malls, restaurants, Costco, and my work – is perfect.

but wow.. 3700 sq ft, with all those upgrades for barely over $400k. not bad. i’ve seen some highhly upgraded models in greer ranch selling at 450-480k but they were 2800 sq ft…stil large, but not as large.

do you know if DR was including flooring too or was that all extra. try to add nice flooring to 3000+ sq ft and you’re looking at some serious additional money… this home is in murrieta..but i’ve seen some homes that are techincally IN the CITY of murieta, but due to school district boundaries, the kids had to go to school in Mennifee which is not as good of a district… whats the deal wtih these DR horton homes..they are pretty clsoe to the border of murreita, winchester and menifee…

the price/sq ft of my home is $350/1900 sq ft = 184/sq ft.

the price fo this home is 421k/3300 sq ft = 127…wow.

although given a choice between some house that far up winchester….it’s pretty far up there…PITA freeway access…might get better later as roads develop…any amenities with this place like pools parks etc? in my experience..a lot o the homes up that way tend to cost a bit less than the areas further south…closer to the freeway/malls…

you guys here that know Tem/Murr think this deal at the DR place is great or do you think it’s only gonna get better??? 🙂 or shoudl i even ask… 🙂

[Bugs]

I would ask: “How can it NOT get better?” We’re still playing in the first quarter, not even to the halftime buzzer. The numbers of available properties is going up, financing options are going down, prices are in full-scale retreat, and the number of qualified buyers standing on the sidelines waiting for the right time is not that large. They’re visible only because of what they are not doing.

Even if this was the low point (it isn’t), there will still be further declines because the builders are still building more units than they have buyers for. They’re expanding an already-bloated inventory.

The-bottom-is-now-theory absolutely defies common sense. You can’t add 10% more houses to the overall inventory during the runup and have 25% of the buyers (the flip investors) leave the market after that runup, without there being a corresponding effect on the pricing.

[23109VC]

bugs – so this house that WAS at $521k….which is now offered at $421k….

how low do you all think houses like that will go to when it truly hits the bottom?

$321k?
not that low
even lower
???

[TemekuT]

kev374 – where were comparable houses in Temecula or Murrieta priced at $75,000 in 1997? I bought a new house in Temeku Hills in Fairway Point in 1997, a small 1775 sq. ft. 2 and 2 with a den with a great floor plan and it was $154,900. That was the least expensive new home in Temeku Hills and prices in Fairway Point went to the mid 200’s. I don’t recall Murrieta being below 150K for a new 3 and 2. Maybe old, small homes in Hemet or Wildomar were under 100K. I do recall the 3 and 2.5 townhomes on Margarita (blue trim and red tile roofs) were in the 80’s.

[TemekuT]

23109VC – be very careful about those outlying areas. I was in Hemet yesterday (hadn’t driven there for years) and what a dump it all is once you get out of the new areas. Once you buy in, you’re stuck. There’s a reason why the discounts are so deep in the outlying areas.

[The-Shoveler]

Nor_LA-Temcu-SD-Guy

No expert here but been looking at homes from Ventura, North L.A. – OC – Temecula – and SD ,

Seems just about all area’s are down about 100K from their peak 2005 price (for like homes, foreget the median price whatever that is).

[Bugs]

VC23109,

If, as another poster suggested, that project was already $50k overpriced before their latest adjustment, they only really adjusted to $50k less than their nearest competition. It looks bad on the surface until you remember they probably bought the land prior to 2003 and based on those prior prices. They wouldn’t admit it, but they still have some room.

As for how low it will go, I think there ultimately has to be some correlation between wages and pricing. Working backwards from $320k and assuming the following: 5% down, 7% interest, ~33% max for mortgage payment and taxes (not counting insurance and HOA), we come out to the following:

$304,000 @ $7% = $2,010 x 12 = $24,129 + $3,600 taxes / .33 = $84,027 annual income. I don’t know that there are but one or two communities in SD County where the median household income is $84k; how many do you think there are in Riverside County? You can play around with the numbers and tax writeoffs and all, but no matter how you slice it even the $321k looks high for an “average” home in that area.

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