Observations of Other Markets

[cyphire]

Hey maybe the government could step in and buy those 69Palms homes and let the service people have / rent them. I’m against staying in Iraq and despise the current administration – but I think that the military gets the short end of the stick and it’s a way to have some synergy going.

(I’m not saying pay the developers full price or bail them out – just get some of the inventory off the market and help out the troops.)

[cyphire]

Hey maybe the government could step in and buy those 69Palms homes and let the service people have / rent them. I’m against staying in Iraq and despise the current administration – but I think that the military gets the short end of the stick and it’s a way to have some synergy going.

(I’m not saying pay the developers full price or bail them out – just get some of the inventory off the market and help out the troops.)

[cyphire]

Yes – my understanding is that there are about 4 thousand Brit’s who have gone completely upside-down on Florida condos. Even at the crazy prices when translated into Pounds they are a cheap bargain compared to London. Unfortunately they way over paid, pre-bought and are now in financial trouble (the vast majority).

[cyphire]

Yes – my understanding is that there are about 4 thousand Brit’s who have gone completely upside-down on Florida condos. Even at the crazy prices when translated into Pounds they are a cheap bargain compared to London. Unfortunately they way over paid, pre-bought and are now in financial trouble (the vast majority).

[jan777]

I live in Corona and we have hundreds of bank owned homes for sale. It has been painful to watch the market here. Some of the banks are finally getting a reality check and have started lowering their prices. I have even seen some bank owned homes now with $150,000-200,000 drop in prices since they went on the market.

I have been in the market since January to purchase a home. While driving by looking at bank owned homes I happen to come across a KB development in South Corona. We stopped just to look at the models and my husband and I ended up purchasing a 3700 sq ft. home with $94,000 of upgrades for $582,000. KB is paying $10,000 closing cost and a 3% commission to our realtor. (We came back the next day with our realtor and bought)

There are only 30 homes in this development and KB (for some insane reason) is not advertising this development. Apparently, the homes were previously sold but KB had major problems with permits and some other problem that most people couldn’t wait and ended up cancelling. Now they have these homes that are almost built with all upgrades that were chosen by the previous owners. We were not able to change anything. But I am not complaining. I love the upgrades.

We bought mainly for investment purposes. We were looking to upgrade from a 1700 sq ft. house to something a little larger around 2500-3000 but nothing that we looked at including the bank-owned homes came close to what we bought with the KB home.

For those in the market do your due diligence, be patient, drive around the deals are out there.

[jan777]

I live in Corona and we have hundreds of bank owned homes for sale. It has been painful to watch the market here. Some of the banks are finally getting a reality check and have started lowering their prices. I have even seen some bank owned homes now with $150,000-200,000 drop in prices since they went on the market.

I have been in the market since January to purchase a home. While driving by looking at bank owned homes I happen to come across a KB development in South Corona. We stopped just to look at the models and my husband and I ended up purchasing a 3700 sq ft. home with $94,000 of upgrades for $582,000. KB is paying $10,000 closing cost and a 3% commission to our realtor. (We came back the next day with our realtor and bought)

There are only 30 homes in this development and KB (for some insane reason) is not advertising this development. Apparently, the homes were previously sold but KB had major problems with permits and some other problem that most people couldn’t wait and ended up cancelling. Now they have these homes that are almost built with all upgrades that were chosen by the previous owners. We were not able to change anything. But I am not complaining. I love the upgrades.

We bought mainly for investment purposes. We were looking to upgrade from a 1700 sq ft. house to something a little larger around 2500-3000 but nothing that we looked at including the bank-owned homes came close to what we bought with the KB home.

For those in the market do your due diligence, be patient, drive around the deals are out there.

[PerryChase]

jan777, I’m a little confused here. You’re seeing all the foreclosures in Corona and you bought a new KB house for investment purposes? How much do you think your new house will appreciate and when?

[PerryChase]

jan777, I’m a little confused here. You’re seeing all the foreclosures in Corona and you bought a new KB house for investment purposes? How much do you think your new house will appreciate and when?

[jan777]

Our new house was less expensive than the bank owned homes we were looking at. Plus the builder is paying all of our closing costs. With that said, we sold our 1724 square foot house bought a 3700 square ft house and our monthly payment went up by $50.00. Originally our new house was selling for mid 700,000 about a year ago but kb ran into major permit issues and so the buyers cancelled. Not sure when or how much our new home will appreciate but we are getting a really nice house at a price we can afford.

[jan777]

Our new house was less expensive than the bank owned homes we were looking at. Plus the builder is paying all of our closing costs. With that said, we sold our 1724 square foot house bought a 3700 square ft house and our monthly payment went up by $50.00. Originally our new house was selling for mid 700,000 about a year ago but kb ran into major permit issues and so the buyers cancelled. Not sure when or how much our new home will appreciate but we are getting a really nice house at a price we can afford.

[hipmatt]

I have to agree with PC, jan. Your logic seems a bit hypocritical. Chances are great that your new home will drop to below what you paid for it, and so will the Corona resales and foreclosures. Hopefully the increased taxes and energy costs don’t kill you. Just one year into the decline, we have a long ways to go to hit bottom, let alone appreciate into anything resembling a decent investment.

The same thing is going on here in Temecula. I had a chance last week to buy a brand new 2800sqft single story, fully upgraded granite, stainless built-ins, home theater speakers installed, for $360k. Two weeks earlier they were trying to sell for $450k. 6 months ago, they were $550k. The sales women kept calling me, and then offered 10k towards closing costs. After talking it over, we decided to pass, they (and everyone else) still have a ton of homes to sell. This is just the beginning, I can only imagine the deals that they will be offering next summer.

[hipmatt]

I have to agree with PC, jan. Your logic seems a bit hypocritical. Chances are great that your new home will drop to below what you paid for it, and so will the Corona resales and foreclosures. Hopefully the increased taxes and energy costs don’t kill you. Just one year into the decline, we have a long ways to go to hit bottom, let alone appreciate into anything resembling a decent investment.

The same thing is going on here in Temecula. I had a chance last week to buy a brand new 2800sqft single story, fully upgraded granite, stainless built-ins, home theater speakers installed, for $360k. Two weeks earlier they were trying to sell for $450k. 6 months ago, they were $550k. The sales women kept calling me, and then offered 10k towards closing costs. After talking it over, we decided to pass, they (and everyone else) still have a ton of homes to sell. This is just the beginning, I can only imagine the deals that they will be offering next summer.

[temeculaguy]

matt, where was the 360k house, I haven’t found any of the builders cutting below 400 for an sfr especially that size range in the city of Temecula, just Murrieta and French valley so far.

[temeculaguy]

matt, where was the 360k house, I haven’t found any of the builders cutting below 400 for an sfr especially that size range in the city of Temecula, just Murrieta and French valley so far.

[jan777]

Not sure what you mean by hypocritical but the development we bought in only had 30 homes for sale and they have only 5-6 left to sell. They have sold about 20+ homes since January. These homes were originally preselling at the end of 2005 and they were starting in the high 600’s with no upgrades. Since we bought in April some of the homes have actually gone up in price. When I said our monthly payment was only increasing by $50.00 a month that was including taxes and homeowners insurance. The house we sold had mello roos taxes and the new house doesn’t have any. That offset the increase in taxes based on sales price.

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