Author Topic: New Home Inventory: Demand or Price?  (Read 18228 times)

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Offline freedomcm

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Re: New Home Inventory: Demand or Price?
« Reply #30 on: August 11, 2010, 11:24:18 AM »
I do know that if you don't own the land, then you are probably leasing the land.  If you are leasing the land, then the term of the lease is probably for 99 years.  And when that 99 years is up, I think you need to negotiate with the county for another 99 year lease.  So this won't affect your generation but maybe future generations.  Someone correct me if I'm wrong.

county does not own the land in lease situations (which iirc have been extinct in Irvine for 30 years), the developer does.  there are two condo devs in OC currently about to lose their land leases, one in tustin and one in hb.  the develper has them by the cajones, and so the value of these condos has dropped 80%.  the land fees may go from $25 to $1000 per unit per month.

irvine condos, the land is owned by the  condo association, of which each owner owns a share, as i understand it.


Offline fe9000

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Re: New Home Inventory: Demand or Price?
« Reply #31 on: August 11, 2010, 01:13:40 PM »
This whole detached condos vs. attached and land ownership is blurry.

Someone who bought a detached condo needs to chime in here to tell us what their contract says.

From what I can garner (I've never owned a condo, townhouse or detached condo), you may own land but it's land in common, meaning you have equal ownership in the land and why you pay a share to maintain it. For true condos, you only own the airspace between the walls and may not even actually own the structure.

And the issue isn't what you can do with land you own (although for bigger and older lots, it's an option to destroy/build/destroy), it's the cost you pay for homes where you don't own the land. Price stability exists in the mid-range, the first to experience priced drops are the lower attached condo style homes and the ultra high end. So by pushing out all these attached products... you're creating whole neighborhoods with less immune values.

Does anyone remember what the detached condos in Woodbury initially went for (I forgot the plan names)? I think they were somewhere from $400-500k... and are now on resale for $300k. So the issue isn't just having affordable detached SFRs, but also making the attached or condo products more inline with value pricing or give it better features for the price (which is probably why Santa Cruz is one of the slower moving products... it's designed like a detached SFR so it's priced similarly yet does not have enough features or a good enough location to fully qualify it).

We bought one before.  Mericort, we do own the land the house is sitting on.  Not the alley, or the walkway to get to the house in the back of the pack.  Just the land the home is on.

Offline irvinefan

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Re: New Home Inventory: Demand or Price?
« Reply #32 on: August 11, 2010, 01:41:58 PM »
This whole detached condos vs. attached and land ownership is blurry.

Someone who bought a detached condo needs to chime in here to tell us what their contract says.

From what I can garner (I've never owned a condo, townhouse or detached condo), you may own land but it's land in common, meaning you have equal ownership in the land and why you pay a share to maintain it. For true condos, you only own the airspace between the walls and may not even actually own the structure.

And the issue isn't what you can do with land you own (although for bigger and older lots, it's an option to destroy/build/destroy), it's the cost you pay for homes where you don't own the land. Price stability exists in the mid-range, the first to experience priced drops are the lower attached condo style homes and the ultra high end. So by pushing out all these attached products... you're creating whole neighborhoods with less immune values.

Does anyone remember what the detached condos in Woodbury initially went for (I forgot the plan names)? I think they were somewhere from $400-500k... and are now on resale for $300k. So the issue isn't just having affordable detached SFRs, but also making the attached or condo products more inline with value pricing or give it better features for the price (which is probably why Santa Cruz is one of the slower moving products... it's designed like a detached SFR so it's priced similarly yet does not have enough features or a good enough location to fully qualify it).

We bought one before.  Mericort, we do own the land the house is sitting on.  Not the alley, or the walkway to get to the house in the back of the pack.  Just the land the home is on.


you are lucky you sold when you did... a friend of mine is having a tough time selling now...

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Re: New Home Inventory: Demand or Price?
« Reply #33 on: August 11, 2010, 03:32:11 PM »
fe9k:

So did your contract/title give you a lot size? If you notice many of those detached condo listings on Redfin, the lot size is not specified because they do not own land or just own land in common.
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Offline fe9000

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Re: New Home Inventory: Demand or Price?
« Reply #34 on: August 11, 2010, 03:45:53 PM »
fe9k:

So did your contract/title give you a lot size? If you notice many of those detached condo listings on Redfin, the lot size is not specified because they do not own land or just own land in common.

Good question.  The answer is probably no and I don't remember.

Yeah, back when we were selling our home, we didn't list lot size.

Offline Talyssa

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Re: New Home Inventory: Demand or Price?
« Reply #35 on: August 13, 2010, 01:46:48 PM »
I think that it does skew their preception.  However,  I think everyone would agree that their 2010 Home Collection was a major success.  I think TIC has only gotten stronger w/ pricing power after this. 

The TIC runs a business similar to McDonalds.  If they have been selling Big Macs this whole time and people are still eating it up, why change the products?

the difference between big macs and new homes is that if you make 1000 big macs and no one wants them, you are out a few hundred bucks. Not quite the same as a house.   

If the Irvine company is only using this data for their metrics, they could get lucky and be fine or they could get unlucky and find out that the market only wanted 500 homes of such and such nature and 1000 homes of antoher nature, but because they only focused on their sure knowledge that there were people who wanted the first kind o fhome, they missed the second kind of market.   I don't doubt TIC knows that. I think they probably do a LOT of market research.  combined with a marketing department that knows how to sell you something you might not have known you were willing to accept.

 

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