Home › Forums › Housing › DR Horton Slashes prices $100k in Murrieta, Menifee, Wildomar and more in …
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23109VC.
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May 22, 2007 at 1:33 PM #54354May 22, 2007 at 1:33 PM #54365
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Participant“who’s to say that when the $hit hits the fan – you won’t have these same peple doing the same thing, only not even bothering to rent out the old one..they get thehouse they want…and then they just let the old one go…”
So, one house is purchased & one house is let go (foreclosed by the lender & eventually ended up back on the market). In term of supply & demand, the sale & the foreclosed house basically cancel each other out.
I don’t see how this would prevent the shit from hitting the fan ? 🙂
In general, foreclosured homes are sold for less than non-REOs. So, if anything, what you described would make things worse. 🙂
May 22, 2007 at 1:38 PM #54356newguy
ParticipantWhen I went down to Temecula last weekend, Meritage was asking for 425K for their 2334 sq ft home in Aberdeen. That puts it at about $182/sq ft. I’m sure if you pushed, you can get it for lower. I’m not sure about their two bigger homes.
However, Lennar (while the location isn’t as good) were asking for 460K for their 3068 sq ft home (Barrington). That’s about $150/sq ft. That’s significantly lower in terms of $/sq ft.
Also, these homes come with their share of stainless steel appliances, new flooring, and in general, a new home. Granted, you have to put more work into window coverings, but it’s a bonus over buying old homes.
In my opinion, I would prefer Lennar’s homes as it’s farther from the bigger streets and have bigger lots (~5100 sq ft vs ~ 4200 sq ft). You just have to walk a lot farther for the Harveston ammenities (you might even have to drive).
But for me, it’s hard to judge what’s a good price per sq ft for the Harveston area. It’s just so new. It seems like the rest of Temecula was about $120/sq ft back in 2000-2002. And some people here in piggington have been saying it’s been as low as $80-90/sq ft. I’m guessing if the prices were adjusted for inflation (and ignoring the crazy spikes of 2003+), we would be looking at $130-140/sq ft. However, because of the bubble, we’re now looking at $200-225/sq ft.
May 22, 2007 at 1:38 PM #54367ParticipantWhen I went down to Temecula last weekend, Meritage was asking for 425K for their 2334 sq ft home in Aberdeen. That puts it at about $182/sq ft. I’m sure if you pushed, you can get it for lower. I’m not sure about their two bigger homes.
However, Lennar (while the location isn’t as good) were asking for 460K for their 3068 sq ft home (Barrington). That’s about $150/sq ft. That’s significantly lower in terms of $/sq ft.
Also, these homes come with their share of stainless steel appliances, new flooring, and in general, a new home. Granted, you have to put more work into window coverings, but it’s a bonus over buying old homes.
In my opinion, I would prefer Lennar’s homes as it’s farther from the bigger streets and have bigger lots (~5100 sq ft vs ~ 4200 sq ft). You just have to walk a lot farther for the Harveston ammenities (you might even have to drive).
But for me, it’s hard to judge what’s a good price per sq ft for the Harveston area. It’s just so new. It seems like the rest of Temecula was about $120/sq ft back in 2000-2002. And some people here in piggington have been saying it’s been as low as $80-90/sq ft. I’m guessing if the prices were adjusted for inflation (and ignoring the crazy spikes of 2003+), we would be looking at $130-140/sq ft. However, because of the bubble, we’re now looking at $200-225/sq ft.
May 22, 2007 at 4:00 PM #54393Anonymous
GuestMy in-laws just moved into Harveston near the lake/pond. Except for getting on and off the 15, it is a nice place for young couples with small kids. They keep hinting that it would be great if I snap up something also. The only thing keeping me out is bubble and it’s consequences.
The advice I gave them, I will share with you.
“If you can stay in the same house for 10 years+ and stick with a fixed rate of 30 or 15 then go for it. Don’t pull any financing tricks while you are there and ride it out. Give the kids a stable place to grow up in. That is all your home should be.”
“In ten years the dollar will continue to slide and your mortgage will meet up with inflation by then and you will be back above water on the loan to house value. For all our sakes I hope it takes 10 years.” Might come quicker.
The only folks that will be able to buy into Harveston after the crash will be solid credit types or those that put a lot of skin on the game (20% or better).
This talk of pulling a fast one on lenders with a bait and switch to bigger homes will work in the short term. The big firms will still need to churn mortgages to keep going. Every avenue of cheating will be accelerated and quickly tapped out. Lenders who need to take the risk, will. Failed lenders will postpone their own death spirals as far as they can.
Eventualy they will do the same thing the stable lenders will do right-away. If you apply for a loan to get a bigger house and try to pass of the old one as a rental, they are just going to stick you with a higher rate if you don’t put enough skin on the bigger house to cover their exposure.
This will work out only for the smart folks that flipped and saved the cash. The ones with garages full of toys will not find a lender so eager to part ways with money.
May 22, 2007 at 4:00 PM #54406GuestMy in-laws just moved into Harveston near the lake/pond. Except for getting on and off the 15, it is a nice place for young couples with small kids. They keep hinting that it would be great if I snap up something also. The only thing keeping me out is bubble and it’s consequences.
The advice I gave them, I will share with you.
“If you can stay in the same house for 10 years+ and stick with a fixed rate of 30 or 15 then go for it. Don’t pull any financing tricks while you are there and ride it out. Give the kids a stable place to grow up in. That is all your home should be.”
“In ten years the dollar will continue to slide and your mortgage will meet up with inflation by then and you will be back above water on the loan to house value. For all our sakes I hope it takes 10 years.” Might come quicker.
The only folks that will be able to buy into Harveston after the crash will be solid credit types or those that put a lot of skin on the game (20% or better).
This talk of pulling a fast one on lenders with a bait and switch to bigger homes will work in the short term. The big firms will still need to churn mortgages to keep going. Every avenue of cheating will be accelerated and quickly tapped out. Lenders who need to take the risk, will. Failed lenders will postpone their own death spirals as far as they can.
Eventualy they will do the same thing the stable lenders will do right-away. If you apply for a loan to get a bigger house and try to pass of the old one as a rental, they are just going to stick you with a higher rate if you don’t put enough skin on the bigger house to cover their exposure.
This will work out only for the smart folks that flipped and saved the cash. The ones with garages full of toys will not find a lender so eager to part ways with money.
May 22, 2007 at 4:08 PM #54364Bugs
ParticipantSorry, my last post got cut off.
The missing numbers were “4,100 to 5,100” during 1992 – 1998. We didn’t reach 12,000 new units/year until yr2000.
May 22, 2007 at 4:08 PM #54375ParticipantSorry, my last post got cut off.
The missing numbers were “4,100 to 5,100” during 1992 – 1998. We didn’t reach 12,000 new units/year until yr2000.
May 22, 2007 at 5:28 PM #54401FormerOwner
Participant23109VC,
I agree with your views on French Valley. If/when I buy a house in the Temecula Valley again (not anytime soon!) it will be in location like Harveston that at least has some amenities and decent proximity to freeway access and stores. Temecula is already an exurb on San Diego and French Valley is a suburb of that exurb. I wouldn’t buy out there at any price; I wouldn’t even rent there.
May 22, 2007 at 5:28 PM #54414Participant23109VC,
I agree with your views on French Valley. If/when I buy a house in the Temecula Valley again (not anytime soon!) it will be in location like Harveston that at least has some amenities and decent proximity to freeway access and stores. Temecula is already an exurb on San Diego and French Valley is a suburb of that exurb. I wouldn’t buy out there at any price; I wouldn’t even rent there.
May 22, 2007 at 6:50 PM #54411The-Shoveler
ParticipantThe Super Target Mall and Home Depot coming soon to French Valley should help the store proximity issues a lot, But I guess the 3.5 miles to the Temeclua Mall or Harveston would be quite a trek (on a bicycle).
May 22, 2007 at 6:50 PM #54424ParticipantThe Super Target Mall and Home Depot coming soon to French Valley should help the store proximity issues a lot, But I guess the 3.5 miles to the Temeclua Mall or Harveston would be quite a trek (on a bicycle).
May 22, 2007 at 8:11 PM #54425ParticipantSpeaking of Harveston, this bank repo just popped up on ZipRealty:
xx096 PASADENA DR, Temecula, CA 92591
List Price: $419,900
1991 sq ftThat list price is 231K below the last sale – a 36% drop! I think the 650K must have involved some cash back (this house was NEVER worth 650K IMHO) – another example of a house flipped at an inflated price in a declining market. I think the 517K was a legit sale – that would still be a 100K loss though! Egad!
Check out the sales history (per CyberHomes.com – Zillow seems to be on the fritz lately):
6/30/2006 Sale Price: $650,000
3/24/2006 Sale Price: $517,000May 22, 2007 at 8:11 PM #54438ParticipantSpeaking of Harveston, this bank repo just popped up on ZipRealty:
xx096 PASADENA DR, Temecula, CA 92591
List Price: $419,900
1991 sq ftThat list price is 231K below the last sale – a 36% drop! I think the 650K must have involved some cash back (this house was NEVER worth 650K IMHO) – another example of a house flipped at an inflated price in a declining market. I think the 517K was a legit sale – that would still be a 100K loss though! Egad!
Check out the sales history (per CyberHomes.com – Zillow seems to be on the fritz lately):
6/30/2006 Sale Price: $650,000
3/24/2006 Sale Price: $517,000May 22, 2007 at 9:35 PM #54437mydogsarelazy
ParticipantWe live in Murrieta and often take our two girls over to Harveston to enjoy the playground and the lake.
It really is an attractive community, and it is well maintained. There is a waterpark planned nearby and in a few years there will be another freeway ramp, and that should be good for Harveston.
However, didn’t I read on this board that the taxes are very high? Two percent? I know that the lake has been deeded to the City of Temecula and it is expensive to maintain properly.
So, if you found a nice home for $500k and could buy it all cash, you would still be paying $1k per month property taxes forever.
French Valley? I find it to be so weird. Lots of new homes, and really almost nothing else.
JS
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