Author Topic: No new sales in Great Park  (Read 2335 times)

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Offline gpquest

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No new sales in Great Park
« on: April 14, 2020, 09:09:38 am »
Coronavirus is real estate’s ‘induced coma,’ says Irvine’s Great Park developer
“Once the patient awakes, they should be healthy,” Emile Haddad says.

Sales fell to nine in a week. And since then, basically, none.

https://www.ocregister.com/2020/04/10/coronavirus-cuts-irvines-great-park-neighborhoods-home-sales-to-zero/

Offline USCTrojanCPA

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Re: No new sales in Great Park
« Reply #1 on: April 14, 2020, 12:38:46 pm »
Coronavirus is real estate’s ‘induced coma,’ says Irvine’s Great Park developer
“Once the patient awakes, they should be healthy,” Emile Haddad says.

Sales fell to nine in a week. And since then, basically, none.

https://www.ocregister.com/2020/04/10/coronavirus-cuts-irvines-great-park-neighborhoods-home-sales-to-zero/

That mirrored what I've been seeing, new home sales were picking up in Jan to early March as rates started dropping (whether it was at the Great Park, Portola Springs, or Orchard Hills).  What was interesting is that Irvine Pacific was increasing prices of their new Portola Springs homes in Feb/Mar.
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Offline Soylent Green Is People

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Re: No new sales in Great Park
« Reply #2 on: April 14, 2020, 06:44:27 pm »
The new sales is one piece. Closings are what I'm looking forward to seeing info on.

Not sure if any of the January/February sales were May/June closings. If they were, how many are going to see it through? During the last two crises (1992/2008) there were many new home buyers who gave up their deposits rather than going through and closing. Some of the buyers were able to get a portion of their deposits back later, but it was quite a fight.

Who knows about this go 'round?

Offline PSbuyer

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Re: No new sales in Great Park
« Reply #3 on: April 17, 2020, 04:02:36 pm »
Hi! I'm a new member but joined recently as I discovered this website and all the helpful information and members. I'm hoping to get some input as I am in the buying process in Portola Springs.

I put down a deposit earlier this year on a new build with Cal Pacific before COVID-19 came into the picture, and after reading the mentioned OC Register article can't help but wonder if this goes on for awhile whether prices will decrease if there are no new sales.

The home I put a deposit on won't be available until September, but am wondering if in the past downturns like 2008 if builders were extending any of the price decreases they had to make on later releases on purchases that were already in progress. I would imagine that if prices dropped enough, they would want to do this to avoid buyers ditching their deposit and bailing like Soylent Green Is People mentioned.

Anyone remember if this was the case back in 2008? Thanks in advance!

Offline Cares

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Re: No new sales in Great Park
« Reply #4 on: April 17, 2020, 04:41:58 pm »
There were many buyers cancelling escrow on new homes simply because it was better to lose $10-20k on your deposit than to instantly lose $100k in your home value.

Offline PSbuyer

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Re: No new sales in Great Park
« Reply #5 on: April 17, 2020, 05:15:23 pm »
Makes sense. I was wondering to avoid that, were builders giving those who were already in the purchase process some of the same price drops to avoid buyers from  cancelling escrow. Because if prices drop enough I would want to see if builders would negotiate the purchase price down.

I imagine it’s a win win as builders wouldn’t have to find a buyer in a potentially challenging market, and I as a buyer wouldn’t lose our deposit and overpay for a property.

Offline Compressed-Village

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Re: No new sales in Great Park
« Reply #6 on: April 17, 2020, 10:31:19 pm »
Hi! I'm a new member but joined recently as I discovered this website and all the helpful information and members. I'm hoping to get some input as I am in the buying process in Portola Springs.

I put down a deposit earlier this year on a new build with Cal Pacific before COVID-19 came into the picture, and after reading the mentioned OC Register article can't help but wonder if this goes on for awhile whether prices will decrease if there are no new sales.

The home I put a deposit on won't be available until September, but am wondering if in the past downturns like 2008 if builders were extending any of the price decreases they had to make on later releases on purchases that were already in progress. I would imagine that if prices dropped enough, they would want to do this to avoid buyers ditching their deposit and bailing like Soylent Green Is People mentioned.

Anyone remember if this was the case back in 2008? Thanks in advance!

That's alot of money to walk away from. If it was my money, and with the current environment, it would be understandle for one to loose your job or on an extended furlough or may not have a job after the furlough period. You would need a letter or a documents as proof of your pending termination of employment and builder would not only give your deposit back but also empathy for your situation. You can be create here how to obtain your proofs.

Builder are not loosing anything, except if you gone through the upgrade selections for your intended home, then that might get deducted from your deposit. Hopefully you are not that far into the process. Builders can and will able to refund for you, if you have hardship financially from owning a home.

Offline Agent Joe

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Re: No new sales in Great Park
« Reply #7 on: April 18, 2020, 12:52:57 pm »
Makes sense. I was wondering to avoid that, were builders giving those who were already in the purchase process some of the same price drops to avoid buyers from  cancelling escrow. Because if prices drop enough I would want to see if builders would negotiate the purchase price down.

I imagine it’s a win win as builders wouldn’t have to find a buyer in a potentially challenging market, and I as a buyer wouldn’t lose our deposit and overpay for a property.

You can ask for a price reduction but probably won't get it. Once you put down a deposit, the builder has the leverage as most buyers couldn't possibly fathom losing $20k+ for nothing. If you have a capable realtor, it would be better to have your realtor do the talking. If you want to back out, now is the time. You will need a valid excuse and documentation to support that. If you need help, feel free to DM me.

As for the builder not losing anything, that's not exactly true. When people back out, it could create a cash flow problem for them but builders should be capable of handling that as they have access to financing and possibly gov't bail-out whereas you and I probably don't.
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Re: No new sales in Great Park
« Reply #8 on: April 18, 2020, 01:43:03 pm »
I would definitely have you and/or your agent start the communication of your concerns with the builder. It's very early in the process so it's doubtful that the builder will reduce the price BUT where the builder may have flexibility is with credits (design center and/or closing costs). The builder will look at the market and their current sales/wait list in determining in what they will be willing to offer you, if anything. Builders will be more reluctant to give away much in the lower end of the market as homes are moving in that price range. Goal is to get to a win-win situation where everyone feels good. Good luck and keep us posted.
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Offline eyephone

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Re: No new sales in Great Park
« Reply #9 on: April 18, 2020, 02:15:15 pm »
the music has stopped a long time ago.
#musicalchairs

Offline irvinehomeowner

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Re: No new sales in Great Park
« Reply #10 on: April 18, 2020, 02:21:45 pm »
You have a case not to lose your deposit if Covid causes a layoff or loss of income.

Your mileage may vary.
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Offline PSbuyer

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Re: No new sales in Great Park
« Reply #11 on: April 18, 2020, 09:52:45 pm »
I would definitely have you and/or your agent start the communication of your concerns with the builder. It's very early in the process so it's doubtful that the builder will reduce the price BUT where the builder may have flexibility is with credits (design center and/or closing costs). The builder will look at the market and their current sales/wait list in determining in what they will be willing to offer you, if anything. Builders will be more reluctant to give away much in the lower end of the market as homes are moving in that price range. Goal is to get to a win-win situation where everyone feels good. Good luck and keep us posted.

Thank you Martin! That is helpful to know. I did express concern naturally as all of this went down after deposit was made and they were confident that the market at the time would hold up. If I’d come across this board sooner I wouldn’t have made the mistake of signing in with an agent :-) When I asked mid-March if I could get some sort of credit because I wasn’t working with an agent I was denied.

To those saying I have a case to get my deposit I lose my job, I can confirm that yes, that was mentioned in the (already!) numerous papers I signed. It also says that they have the right to increase or decrease the purchase price before closing.

My question is specifically if builders were lowering prices in 2008 when prices dropped significantly. My thought is that it would be a win win if they came partway down between the purchase price of pre and post downturn, since it would allow builders to retain an existing buyer and not have to find another one in a market in which it would’ve been challenging.
« Last Edit: April 18, 2020, 09:57:57 pm by PSbuyer »

Offline irvinehomeowner

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Re: No new sales in Great Park
« Reply #12 on: April 19, 2020, 08:32:40 am »
The answer, in my case, is yes... builders did lower prices during the 08 time period.

At at least 3 different tracts (Columbus Grove, Woodbury and Portola Springs) builders were actually open to offers on homes. In one case, they had our deposit and they asked if there was something they could do to prevent us from cancelling as they said they would consider lowering the price but we just said we didn't want to buy at that time (no job layoff excuse or anything from us).

But that was a different time... maybe builders are more strict today.
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Offline Compressed-Village

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Re: No new sales in Great Park
« Reply #13 on: April 19, 2020, 11:23:49 am »
I would definitely have you and/or your agent start the communication of your concerns with the builder. It's very early in the process so it's doubtful that the builder will reduce the price BUT where the builder may have flexibility is with credits (design center and/or closing costs). The builder will look at the market and their current sales/wait list in determining in what they will be willing to offer you, if anything. Builders will be more reluctant to give away much in the lower end of the market as homes are moving in that price range. Goal is to get to a win-win situation where everyone feels good. Good luck and keep us posted.

Thank you Martin! That is helpful to know. I did express concern naturally as all of this went down after deposit was made and they were confident that the market at the time would hold up. If I’d come across this board sooner I wouldn’t have made the mistake of signing in with an agent :-) When I asked mid-March if I could get some sort of credit because I wasn’t working with an agent I was denied.

To those saying I have a case to get my deposit I lose my job, I can confirm that yes, that was mentioned in the (already!) numerous papers I signed. It also says that they have the right to increase or decrease the purchase price before closing.

My question is specifically if builders were lowering prices in 2008 when prices dropped significantly. My thought is that it would be a win win if they came partway down between the purchase price of pre and post downturn, since it would allow builders to retain an existing buyer and not have to find another one in a market in which it would’ve been challenging.

Did you attempt to ask for price improvements? Just don’t say can you lower the price? Give them a number that you looking for, like 5 or 10 %? Or XXX.XX dollars? You will then leaving an impression that you changed your mind , then in that case builders will use this to keep your deposit. Come in with a numbers and not open ended questions for them to guess.

Offline aquabliss

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Re: No new sales in Great Park
« Reply #14 on: April 19, 2020, 02:28:35 pm »
If you’re interested, don’t just say a number but make a written offer.  My co-worker wanted to buy new construction in Ladera Ranch right after 9/11 and the ask price was $525k at the time.  They had no sales all September, but said they weren’t lowering prices.  At the end of the September he made a written offer for $490k and they took it.  So you never know.

 

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