They had the big broker party scheduled for today that was going to include an appearance by Mr. Davidson himself. But they postponed due to rain – I’m hoping to get his thoughts on the market!
Jim Klinge
Klinge Realty Group
Broker-Associate, Compass
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I love that he has done away with the formal living room and just has the great room/kitchen. I think this guy really gets what people are looking for in homes. He has a much better feel for desired floor plans than the traditional builders. And his decorator’s really dolled the places up great. I live in a Davidson place designed in early 90’s and the layout of it still works and doesn’t feel dated.
I’m sure your stitches would’ve been the hit of the party! 😉
Small community of just about 40 homes. Davidson does build beautiful quality homes.
I think I read some where that davidson’s wife does all the interior designing for the models.
Now these are homes! Much better than those older million dollar+ homes in the previous videos. Although, still overpriced. If these were 300k-400k, then maybe more people could afford them. Just shows how far the money spigot has opened wide. so much for the value of a dollar.
Thank you Mr. Negative. Could it be that we have more rich people than we thought?
The video was cut short, and featured only the Plan 2&3.
Here is the tour of the Plan 1:
http://youtu.be/vL6h-7T2OZU
There’s plenty of homes in the $300-400k range in SD. Why waste time complaining about prices of homes that’s clearly not “300-400k”.
http://www.sddt.com/news/article.cfm?Sourcecode=20110203czc
The ungraded lots average out to be $170k per lot. After grading, perhaps $200k? We know Davidson does not cut corners, so the $/sqft on the construction will for sure be over $100/sqft. But we’ll just assume $300k per home. Now we are looking at $500k. Then there’s permits and marketing and everything else.
So you expect Bill Davidson to subsidize your housing by at least $200k? When he is in this to try to make at least $200k per home. Especially since he was on the losing end of things during the peak.
Don’t know about you Jim, but I would really like to hear this guy explain his logic.
Great video, love those homes. Did Taylor Morrison sell out all the homes they bought from Davidson in Bressi/La Costa Area? Similar designs but slightly larger. I think you did a piece on that earlier this year.
They haven’t sold out but they are doing well, in spite of themselves. We’ll see how they do on the last phase, which is an inferior group.
I have one of their new ones in escrow now (it was supposed to close yesterday) and it has been a circus for the last six months.
We wanted the same upgrades that were in the Davidson-built model, but they said they couldn’t do them. Why would you buy this tract with standing models if you couldn’t duplicate?
We finally convinced them to figure it out, but it took weeks.
Last week we did the final walk-through, and thought we were set to close, but then their loan company went MIA and still haven’t printed loan documents, let alone sign them. How can the seller-owned mortgage company be so lame that they miss the scheduled close date by 1-2 weeks?
Very nice.
I think there’s a difference between the old beige-beige-beige and this approach. These houses have dark floors, some beige, but also lots of white-white, stainless steel, mirrors, and non-trav natural stone. It’s a totally different look, I think, even though it involves some beige. I like it a lot.
“We wanted the same upgrades that were in the Davidson-built model, but they said they couldn’t do them. Why would you buy this tract with standing models if you couldn’t duplicate?
Oh my goodness. That’s terrible.
#6
Looks like Davidson has a good reputation as a builder. Where i feel davidson is weak is “Demand based pricing”. I had a chance to look at sentinels in Delsur.What were they thinking ..800K home and it feels like group sharing home(front yard/courtyard). They say it is french style/similiar. They couldnt sell for last 2 years and they sticked on their guns on price. I am sure, they will re-coupe some of it in their next gig.
About Cost of home. Home Builders have to negotiate land costs. Not just pass them thru, via Mello roos to the buyers as they did in bubble years. I am sure, if they didnt do it, market (buyers) will correct their market share.
Fairness: If we are talking about fairness, then lets Tax any investment property transaction at 5% of the deal. 🙂 . This way not many of our future generations are not priced out.
What a mess with the seller owned mortgage co. Hope you close soon! Thx again for the great video and insight..
I remember similar quality & size new homes in good areas going for $150psf in 1990, which (per the CPI) equates to $262psf now; not too far off, really.
That said, I still believe historically low rates are skewing prices significantly upwards.
#12: Wages haven’t come close to keeping up with CPI according to some charts I’ve seen (from a CPI vs. salary google search), so if income really is a factor then we still could be a ways off. This assumes that there is an actual metric(s) that could function a reasonable indicator of where prices “should be.” Irrationality is the new normal it seems.
I don’t think anyone will argue with you regarding the effect of low rates on prices.
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Really helpful video, I dig the houses – especially the “accordion” doors. The prices don’t seem too crazy; it’s the mello-hoa fees that frighten me.
Depending on interest rate that $2700 MR would probably equal a payoff of $25-30k. So instead of $780k, you’ll be looking at $810k. Does that scare you more or does the $2700 per year scare you more?
I was considering the HOA as well. If you didn’t have to pay either you could afford another $50-60k of house…
Fine, you win. The fees and the prices scare me equally. And Mello-roos sickens me.
“Thank you Mr. Negative.”
Complaining that homes should be more affordable and available for more people is never negative. Having people go into debt for drabby stucco boxes or going through a frustrating buying process because of unfair federal reserve / government / bank home supply practices.. Now that’s negative.
Putting people underwater.. Now that’s negative. I think each agent or broker should have an underwater rating which shows how many or what percentage of his/her sales are now underwater. Oh and the agents sleep so well at night.
“Could it be that we have more rich people than we thought?”
We don’t have enough “rich” people. If we had more rich people, we would have less unimaginative stucco boxes and more of these “luxurious” homes being sold. I wouldn’t call the person buying a stucco box for a million dollars rich by any imagination. Were the people who bought at the top of the bubble rich? But I guess buying at bubble prices is a good thing according to the discord here.
“The ungraded lots average out to be $170k per lot.”
Why should lots be priced so high so as to start off the building process at high prices? If prices were lower, more quality materials would be used instead of the money being laundered into the pockets of individuals of the FIRE industry. Instead of 20k going into some land owner’s pocket, that 20k could be used for solar panels. Imagine a law stating every new home must have solar panels. But I guess people don’t quite understand economics.
You are Mr. Negative.
You don’t come in here to contribute to others, you solely come here to show everyone how superior you, and your theories, are compared to us normal folks. And you are always glad to throw in some agent-bashing for icing on the cake.
Go complain somewhere else, we’re trying to get something done here.
Mr Damania,
You are missing the very BASIC of economics ….
Lots are much cheaper in Iowa, Ohio and Michigan because YOU DONT WANT to move there.
Lots are expensive in Manhattan, Silicon Valley and Coastal California because YOU WANT TO live here.
Its a free country, you can always pay the top dollar if you want to live in desirable places or else move out and let others pay. Its not unique to US … las time I checked it was like that in Bombay, Shanghai, Hong Kong and other desirable locations.
“not many of our future generations are not priced out”
… really … are we living in a fairyland or something.
Future generations can always move out or pay the top rent. This is what all the grandpas from La Jolla to Manhattan have been telling me.
Should I blame them for pricing me out of that La Jolla Ocean front ?
How refreshing to see a builder with a sense of style. Love the informal dining island idea…where can I find plans for those? Going to be remodeling my kitchen soon.
Thanks,
Jay
Mitesh, you are talking only stucco boxes. You forgot about all the dirt that is underneath it. All dirt isn’t the same…some dirt is alot closer to the beaches, work centers and good schools than other dirt.
I bought my house because of the dirt, and the house was maybe worth 10% of what I paid. It isn’t even stucco.