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alstry (35.13)

Weed Infested New Home Communities

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June 11, 2008 – Comments (2)

From the Modesto Bee:

The signs are painted over. The models are empty. All building has stopped at the three Falling Leaf subdivisions in Modesto's Village I. With less than half of the planned 314 homes complete, developer William Lyon Homes has quit construction. Empty lots growing weeds remain. Falling Leaf apparently is the latest victim of the housing market downturn plaguing the Northern San Joaquin Valley.
...
Falling Leaf repeatedly cut prices. Example: Its smallest house, a 1,620-square-foot plan, was priced at $379,000 in August 2006, then dropped to $329,990 by February 2007 and dropped again to $269,900 in April 2007. By last month, the development drastically sliced prices on its remaining inventory to about $100 per square foot.

The above was found at Sacramentolanding.com

 

Think about this folks, prices are so cheap now that builders have simply turtled.  Those poor folks that purchased homes in the past few years are so underwater that practically their only option is to go into foreclosure as who the hell wants to buy a new house in a weed infested mosquito riddled unkept new home development.

This is California reality. 

It is hapening all over the state in areas where large tract homebuilders overbuilt and sold to anyone with a pulse.  Now we have to live with the consequences.  Destroyed communities with no funds to complete.  Those already in the communities are hosed with little chance to recoup their investments.

Now builders are liquidating hoping to extract anything they can out of the land....but prices are getting so low that there ain't much left to extract. 

When you can't extract, you must contract.

Sure, SPF found some idiotic sophisticated distressed specialist private equity fund to invest $600 million into equity in its overleveraged CA land portfolio in this environment?  I am telling you, it would be easier to find investors to open a pork processing plant in Tel Aviv or Dubai.

2 Comments – Post Your Own

#1) On June 11, 2008 at 10:45 PM, alstry (35.13) wrote:

In case you thought it was limited to Modesto.

http://www.sacbee.com/static/weblogs/real_estate/archives/012790.html

Yuba County dreamed a big dream and everybody came.

But it was the abrupt end of it all that really got my attention. I don't think I saw more than 20 houses being built all day - and most of those were at a D.R. Horton project in Plumas Lake that I am sure they are trying to be done with and move on.

 Mostly, it was acres and acres of dead subdivisions that just jumped out at a driver touring this part of the state. In so many places the streets and sidewalks are in, the utility wires are sticking out of the ground, the street signs are up - and it's nothing but weeds almost as far as you can see.

It's also the houses still awaiting buyers: In Edgewater: A street of 20 houses built by Roseville's JMC Homes with only one house occupied.
 
 In Plumas Lake: a Ryland Homes subdivision called Thoroughbred Acres. Five lovely models and nothing else. Behind it a pile of Ryland flags and poles. I walked up to read the writing on the flags and a jackrabbit ran off. Down Arboga Road, another subdivision by Lakemont Homes. Even the models had dead lawns.

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#2) On June 11, 2008 at 10:48 PM, madcowmonkey (< 20) wrote:

Dude, I thought you were talking about the other weed. If they were handing that out, they might get some lookers/buyers:)

So is it inventory or price that is causing the weeds. Both, you say.No way!

When you say "Destroyed communities with no funds to complete." Are you suggesting they should keep building if they did have the funds? 

 

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