What are the builder’s doing??

[admin]

Can someone explain this to me, please. I live in Riverside County (Temecula/Murrieta area) and it’s more than obvious that houses are on their way to crashing down to below ground zero. Now, owners are reducing prices massively trying to get out any way they can. So, why are builders opening these new subdivisions and advertising peak market prices??

example:

House in new subdivision 3k+ square feet advertsised to be in the low 500K

Owner in trouble advertizing same house for 296K

What gives??

[orthofrancis]

I imagine they are setting fires to get insurance money from houses that haven’t sold.

But seriously, the cost of building new houses should be cheaper now, because demand is down. Fewer houses being built = cheaper labor, cheaper supplies, etc. Good for us.

[golfproz]

500K, that’s nuthin’, I went by a new tract that just opened up in Riverside (Nandinia) and they start in the mid $900’s. There are two tracts with similar homes right next to this one (Bridle Creek and Alicante) that have empty homes sitting for months that they have been unable to sell even after discounting them $200k to around $700k. I just shook my head when I saw the prices. Unfreakingbelievable. The sales lady seemed to think the high end appliances made them worth the extra $200k. Ya, right. There is a REO right behind the models listed for $564k and that’s still too high. (These homes sit on 1 acre lots, that’s whey are a little spendy.)

[golfproz]

500K, that’s nuthin’, I went by a new tract that just opened up in Riverside (Nandinia) and they start in the mid $900’s. There are two tracts with similar homes right next to this one (Bridle Creek and Alicante) that have empty homes sitting for months that they have been unable to sell even after discounting them $200k to around $700k. I just shook my head when I saw the prices. Unfreakingbelievable. The sales lady seemed to think the high end appliances made them worth the extra $200k. Ya, right. There is a REO right behind the models listed for $564k and that’s still too high. (These homes sit on 1 acre lots, that’s whey are a little spendy.)

[golfproz]

500K, that’s nuthin’, I went by a new tract that just opened up in Riverside (Nandinia) and they start in the mid $900’s. There are two tracts with similar homes right next to this one (Bridle Creek and Alicante) that have empty homes sitting for months that they have been unable to sell even after discounting them $200k to around $700k. I just shook my head when I saw the prices. Unfreakingbelievable. The sales lady seemed to think the high end appliances made them worth the extra $200k. Ya, right. There is a REO right behind the models listed for $564k and that’s still too high. (These homes sit on 1 acre lots, that’s whey are a little spendy.)

[orthofrancis]

I imagine they are setting fires to get insurance money from houses that haven’t sold.

But seriously, the cost of building new houses should be cheaper now, because demand is down. Fewer houses being built = cheaper labor, cheaper supplies, etc. Good for us.

[orthofrancis]

I imagine they are setting fires to get insurance money from houses that haven’t sold.

But seriously, the cost of building new houses should be cheaper now, because demand is down. Fewer houses being built = cheaper labor, cheaper supplies, etc. Good for us.

[Author]

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