Remember when they said housing is a safe investment because prices never go down? Builders fell for their own sales pitch. Now they’re paying the price, big time.
This weekend and next weekend, D.R. Horton is trying to shrink of a stubborn backlog of unsold new homes in Southern California by cutting prices up to 50%. Here’s a link for more information.
The homes are in communities with faintly ridiculous names like “Alicante at Talavera” and “Lavender Trails at City in the Hills.” They’re in Kern, Riverside, Ventura, San Bernardino and Imperial counties—that’s the Inland Empire east of Los Angeles that isn’t looking so imperial these days.
Not trying to promote D.R. Horton, but it seems like a good buying opportunity to me. On the other hand, I’d be furious if I bought a D.R. Horton home in the area for full price a couple of years ago.
Here’s a link to a story from Big Builder magazine about the sale.
BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.