San Joaquin Builders Pullback ‘Reflection Of A Slowdown’
The Record.net reports on the housing market in California. “Building permits for single-family homes in San Joaquin County were down even more sharply in January year-to-year than in December, a reflection of a slowdown that has some homebuilders cutting prices and offering incentives in the past couple of months. A total of 322 construction permits were issued last month countywide, down nearly 40 percent.”
“Builders say that fast-escalating prices are over as prices rose to levels that began putting off many potential buyers. The San Ramone-based homebuilder, Pacific Mountain Partners, hasn’t marked down sales prices at its 134 lot Mossdale Landing development, which features models running in the $582,000 to $687,000 range.”
“Incentives have ranged between $10,000 and $40,000 per home in the past couple of months to prod sales, though, Heidi Mezenski said. ‘We weren’t doing incentives last summer,’ she said. ‘We were working off waiting lists.’”
“The changed sales market had Oakland residents Stoney and Toni McCree checking out model homes in Mossdale Landing on Friday. The McCrees, who don’t own a home now, are aware of the slower market, and they not only think it’s a good time to buy, but they also intend to take six months to do it.”
“Stoney McCree said he’s not surprised that new homes are better deals these days. ‘I eventually thought the housing market would hit a ceiling and prices would come down,’ he said. ‘I like the prices for what they’re offering.’”
“Toni McCree said they also liked the way homebuilder sales representatives seemed willing to deal, something they wouldn’t have expected in the past.”
This article is a good example of the reporting these days; prices have fallen $40,000 so it’s a ‘good time’ to buy. No consideration that they might fall another $40,000.
Exact same mentality as during the dot com bust. Price has fallen so it must be a “good buy” now.
stoner”
dude, put down the bong
It is buyer trap! Prices fall a little and the RE people congratulate them selves on offering product to potential buyers as a get in now opportunity. Man…where are your mental faculties? This happens so many times from stock to bonds and other assets. Look at Prices,taxes, association duses and the full cost of owning. The math does not work in most cases.
“Stoney McCree said he’s not surprised that new homes are better deals these days. ‘I eventually thought the housing market would hit a ceiling and prices would come down,’ he said. ‘I like the prices for what they’re offering.’”
“Toni McCree said they also liked the way homebuilder sales representatives seemed willing to deal, something they wouldn’t have expected in the past.”
Stoney dude, whatcha been smokin’? Take the HB reps’ willingness to deal as a warning sign!
“Stoney McCree said he’s not surprised that dot.com stocks are better deals these days. ‘I eventually thought the internet market would hit a ceiling and prices would come down,’ he said. ‘I like the prices for what they’re offering.’”– circa spring, 2000
Stoney and Toni - another couple of California millionaire wannebes looking at half to three-quarter of a million dollar homes and seeing a good value.
Other than the potential for flooding, the uncertainty of the schools and wondering how they’ll hold up on the commute, these two jackasses think it’s a good time to buy.
Is California located above some huge pocket of gas that seeps into everyones brains and makes them complete, 100% morons?
what a bunch of morons. what do you guys think their commute is?
Actually we’re not above the pocket of gas, we’re smack-dab in the middle of it! (Now, where’s my inhaler?)
-A San Diego Renter
OT:
Huntington Beach, CA inventory is off the charts. I have been tracking 92648 since 8/05. Highest inventory in 2005 was 206.
Inventory for sale today on Ziprealty…. wait for it…..
249! Over 30 new listings since I last checked 4 days ago!
It is looking good for buying in 2007. I think that Auction Heaven and my household are looking in the same neighborhood.
There is too much funny stuff in the air of California. Commuting there SUCKS the big one. I know from experience. If only that kind of sucker would listen to me, they would be running from those bonehead housing places out in the middle of the tule fog sticks. (tule fog is nearly impossible to see in, and extremely dangerous.
yeah.
the town of Mossdale in on highway one, near the ocean, and 60 miles from SF and 45miles from SJ. Anyone that needs to work is in for one miserable commute on the 2 line Pacific Coast HIghway, especially when it is foggy and rainy. THe fog can get so thick near the coast that you are reduced to 5 mph, even if there is no traffic. Also nowhere to shop (except for the gas station), and no jobs there. I hope those morons have fun.
so our homeowners(not specifically these ones) will be hit with higher prices for gas, heating their home and mortgage payments. all the while they have a somewhat risky commute?
Might have a correction, I was speaking of the town of Moss Landing, between Santa Cruz and SF. Don’t know if this ‘planned community’ is there. I just know I have seen too many McMansions built in and around San Ramon/Dublin/Pleasanton/Livermore that are way overpriced, and on what used to be nice, rolling hills. Houses don’t belong there, and I hope they all lose their A$$es
Moss Landing. An old PG&E,Duke,power plant.Try the ‘Whole Enchilada’ and the stuffed artichokes or go to the biker bar, The Bear Flag, on the ‘island’ for pot luck and a good rumble.How much $ did you say . Antique stores and Hewlett-Packard oceanographic yuppies and dinks. What a joke.You can get some nice berrys though.
Over the past 50 years, people who have bought a house here in California and held on to for, say, 20 years or longer have been able to provide for a substantial part of their retirement through homeownership equity gains. Long-term ownership of a home in California has been just about the best investment an individual could make. So people are willing to make big sacrifices to own a home here; I’m talking about long-term owners, not flippers.
Whether homeownership will pay off the same way in the future remains to be seen.
My gut feeling is that the baby boomer generation within California had a lot to do with the steady gains despite wild economic swings.