Who are buying these homes?

[pnilesh]

A few days back I put a post about Shea homes releasing phase – 1 of their condo development (Cypress Greens) in carmel mountain ranch.

Today I got an email from them saying that their phase – 1 is SOLD OUT! Looks like this phase was sold out in just 4 days ( sat, sun, mon and tue)

I am wondering who are buying these homes. I thot pepole are just watching how this market tumbles down before making any house purchase.

Are these homes really affordable? Or am I not thinking right?

Here is their pricing info. Looks like there is no mello roos.

Residence 1 (3 homes) $386,900, $385,900 and $388,900
—————–
1,082 sq. ft.
2 Bedrooms/2 Baths,
1 car garage

Residence 2 (2 homes) $454,900, and $446,900
——————–
1,210 sq. ft.
2 Bedrooms/2 ½ Baths,
2 car garage

Residence 3 (3 homes ) $499,900, $487,900 and $482,900
———————-
1,414 sq. ft.
3 Bedrooms/2½ Baths
2 car garage

pnilesh

[gn]

When the builder says “SOLD OUT”, it means:

– The buyers have put up some “good faith money” & signed the contracts.

Whether or not the buyers will be able to “follow through” with the purchase is a different matter. In 4S ranch, there were many homes that were “sold” & then became “unsold” when the buyers changed their mind or could not come up with the financing.

[Raybyrnes]

Believe they also have set asides as part of the Affordeable housing component with this project. Anyone who gets one of these throught he affordable housiing program has scored a lotto ticket.

[temeculaguy]

Sold for real or not the marketing tactic worked because it caused you to think maybe these are priced well. I would assume the first phase of any project would have the strongest sales because there has to a few people who the location is perfect for, they may work close by, have family really close, etc. and they have watched the models being built and began planning months ago. 8 condos seems small for a phase, small phases seems to be the latest tactic. I visited a development that just opened and they released only six houses but they poured 12 foundations. It would look better to sell out a very small phase rather than open all twelve even though certain unreleased lots might appeal to certain buyers.

How do they compare to resales in the area, I have found developers just starting a tract are priced much better than those that have been open for a year, they can, they won’t lose any sales in progress by lowering prices.

[Cow_tipping]

Yes, developments starting now tend to be priced with an eye to the future whihc is lower potentially, with a cost basing in the present. Older developments were also priced with an eye to the future which was 10% up YOY, and cost basing for then, which was much much higher than now.
Builders are in survival mode, they’d do whatever they can to keep their doors open. Building is their only skill.
Cool.
Cow_tipping.

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