Over the last 2 weeks or so, Windemere is seeing some slowdown in inventory and there is an increase in sales activity. New home sales have seen a reversal of circumstances with existing home sale prices coming down lower than they were 4 months ago.
Current Windemere activity is indicating that short sales are the name of the game. There are only 16 resale homes that are not short or REO's; 15 brand new construction are listed for sale; 3 active REO's; and 18 Short sales ! In the pending market, 19 short sales are currently pending; 10 regular resales; 6 pending REO's; and 5 brand new homes are pending.
On What basis you are saying Windemere is holding Stable when within two weeks I have seen Builder reducing the price by 50K . I visted Windemere last week and found most of the builders are willing to negotiate much more they were a month ago. By the time I reached home two of them already left me a voide message with additional discounts.
I ma talkin gon basis of the resale market. Builders are now trying to compete with the resale market that is riddled with short sales. And BTW, the houses that the builders are negotiating are mostly south facing homes, which south asians do not like. I know wthat builders are now looking at comps on the MLS for resale homes ad are trying to price competitively- I have been a witness to that
sorry for the typo earlier- I am talking on basis of the resale market. Builders are now trying to compete with the resale market that is riddled with short sales. And BTW, the houses that the builders are negotiating are mostly south facing homes, which south asians do not like. I know wthat builders are now looking at comps on the MLS for resale homes ad are trying to price competitively- I have been a witness to that
2K or 20K or 200K? Maybe you made a typo, could you please clarify? Centex has standing inventory which they need to get rid of.And they did not sell them that expensive last year, in fact their prices came down drastically towards spring last year when they sold dirt lots, with houses closing towards fall of 2008. Once they got people hooked on to it, then prices started going up. Unfortunately when the credit crunch came, a lot of people could not get loans and had to cancel.Now those same homes are available for sale at lowered prices.
From your data and talking to Builders it seems Old houses are expensive in Windermere than new Houses . On Top of it both Centex and Lennar are giving excellent Mortgage rates . It is hard to believe how Windermere can be Stable when Builder who has more insight than average Home buyer about the market are giving heavy discounts to lure the buyers. You may be knowing Lennar sold Paloma at $735K in Jan , 2009 .
If resale homes were more expensive, then how come the builders have been unable to sell their standing inventory?? You have to be in the market making offers to know that prices are holding steady and no one is throwing away the homes.My buyers' offers have been thrown out a couple of times in the last 2 weeks. Centex was not offering any low rates till thursday last week;honestly, don't know if Lennar is offering lower rates.If a Paloma sold for 735K, it does not surprise me because that is where the market price is for a plan 1. Builders are giving "heavy discounts" because they realise that they are overpriced compared to the rest of the market. You are misunderstanding the context of my post- I am talking about stability in the resale market.Please try to understand that in the last 2 weeks I have made offers for clients on resale homes and we have been beaten in multiple offers !! In some cases the offers were coming higher than asking price, which surprised me too.If there was a glut of cheap builder inventory, we would not see this situation.
Do you think this one month data of reduction in Average days on the market reflect a stronger trend than the other one from your chart between 07/1/08 to 01/01/09 which is a steep increase in Ave days on the market .
I think it does show month to month variation which is an important factor, a strong trend- I would know after seeing one more month of activity.Please note that these charts are created with averages for the 94582 zip code
Thanks for posting new Blog. What are the fundamentals behind Windermere holding Stable when the broader economy is sinking deep into the recession . Stock Market is finding new Lows every week ,Job Losses are mounting including in Bay area what is keeping Windermere prices stable ?
I agree with you that the broader economy shows a dismal picture.My comments are based on solid evidence on the field. I have been making offers for clients and getting rejected on low ball offers. Sellers are not dumping homes.Even on REO's, the banks are getting smarter to the prices and the banks are not giving away homes.Majority of the short sales are selling close to asking price.Windemere is holding steady because of the demand of homes in the area.A lot of people are moving here for schools and I personally think that people are attracted to Windemere because prices have come down substantially, posing an attractive opportunity to buyers.Currently inventory is low compared to demand. There will be a few oddly priced homes that sound like prices dropped really low but these homes are priced to attract multiple offers and the ploy is working !
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On What basis you are saying Windemere is holding Stable when within two weeks I have seen Builder reducing the price by 50K . I visted Windemere last week and found most of the builders are willing to negotiate much more they were a month ago. By the time I reached home two of them already left me a voide message with additional discounts.