sleepy5136
Well-known member
I don't think it was that obvious otherwise you would have not responded with the above comment.
New communities in Portola Springs
- Thread starter abhinata
- Start date
NEW -> Contingent Buyer Assistance Program
I don't recall 20% drops on new home pricing but it could have been the stock I was looking at.
And I'm noticing that IP hasn't released new homes for Azul and Cielo at PS. Their price sheet this month looks identical to last month. No new homes.
Irvine Pacific did not start building homes until 2010. They are a totally different kind of builder with basically a $0 cost basis for the land along with being private and flush with cash so there's no pressure for them to move homes to pay the bills and/or make quarterly numbers for wall street. It'll be very interesting to see what they decide to do but I think they will remain stubborn and just wait it out.
CalPac is owned by Donald Bren's brother so a related company but without the deep pockets of iPac.
sgip
Well-known member
We had a loanDepot mortgage loan officer trolling our RSM area OCAR Broker's Preview meeting with flyers advertising a few Lapis and Sierra standing inventory homes. I guess this LO was out trying to get the phone to ring for both herself and the community, but it was weird to see given the Realtors in the area really just focus on Coto, RSM, and Mission Viejo. Irvine new construction is not a draw for them relative to let's say a Lake Forest or Laguna Hills area Realtor.
irvinehomeowner
Well-known member
Sounds like desperation. 
CalBears96
Well-known member
Cal Pac is very desperate right now. Sierra having huge price drops. They went overboard with price increase previously. They actually started hiring those sign guys a couple months back.
irviniteeee
Active member
Even a quick move-in is available for Sierra: https://www.redfin.com/CA/Irvine/104-Bouquet-92618/home/181282225
what's considered a "huge" price drop? does anyone have the latest pricing?
irvinehomeowner
Well-known member
This will probably be just like circa 2008ish where the builders will give more design credits, broker co-ops or some other incentives without dropping prices a huge percentage. Then they will slow phases/building.
Not sure who remembers but OH was supposed to open back in the Aughts and people doubted that TIC would delay that project... which they did for years... was it almost a decade?
Not sure who remembers but OH was supposed to open back in the Aughts and people doubted that TIC would delay that project... which they did for years... was it almost a decade?
Builders did drop prices a huge percentage in 2008. Not saying it’s going to happen again but it did happen.
CalBears96
Well-known member
I couldn't find the email that my wife forwarded to me, but if I remember correctly, Sierra dropped $70k. This is on top of credits (I think it was $35k) for rate buy down/design center/HOA fees, and also $35k broker ops.
irvinehomeowner
Well-known member
Probably... "huge" back then was a variable percentage because some people back then said that meant over 50% but now if you said it was around 20%, that is the new "huge".
I don't recall 20% drops on new home pricing but it could have been the stock I was looking at.
Because this is a PS thread, I'll cite a PS example. One builder was selling homes in the mid-high 900s then discounted it to the mid 600s. Since this is TalkIrvine where people like to do math to fit their narrative, I'll let you decide if that's "huge".
irvinehomeowner
Well-known member
What hood was that? Was that a detached home? I think I know which one you are referring to so it may be the "stock" difference.
Also, was that a TIC builder to someone else... that is also a factor.
Also, was that a TIC builder to someone else... that is also a factor.
irviniteeee
Active member
I remember some of the new builds dropping drastically back then. I remember Paloma in PS went from being a 700-1M community to like 600-800s and that was AFTER they expanded and redid the Plan 1 floorplan and added an entire second floor.
I also remember Cortile in Woodbury being in the 500-700 range and the FULLY FURNISHED MODELS selling for like 100-200k less.
I also remember Cortile in Woodbury being in the 500-700 range and the FULLY FURNISHED MODELS selling for like 100-200k less.
Mawesome Sauce
Member
Sadly, were any of those Irvine pacific? I suspect IP got smarter this time and took all the best land so they don’t mark down and force all the other builders to eat the losses from a downturn
CalBears96
Well-known member
Most likely not. As Danimal and I mentioned before, IP would just sit on the land and pause construction. This happened with Woodbury and Stonegate back in 2008 crash. I'm not too familiar with Woodbury, but a friend of mine was buying Stonegate and had to wait until end of 2011, I think, before construction started again and he got a call from sales office to come in to pick a lot. He rushed over immediately to pick out a corner lot.
And I'm noticing that IP hasn't released new homes for Azul and Cielo at PS. Their price sheet this month looks identical to last month. No new homes.
usctrojancpa
Well-known member
Irvine Pacific did not start building homes until 2010. They are a totally different kind of builder with basically a $0 cost basis for the land along with being private and flush with cash so there's no pressure for them to move homes to pay the bills and/or make quarterly numbers for wall street. It'll be very interesting to see what they decide to do but I think they will remain stubborn and just wait it out.
irviniteeee
Active member
IP wasn't around back then.
sgip
Well-known member
Technically, IP was around. It was called "The Bren Company" at one point, then "The Irvine Company". Same players, just under a different corporate name.
irviniteeee
Active member
Yes...let me rephrase. IP wasn't actively building homes back then. The closest to IP back then was CalPac who seemed to have a special relationship with TIC. They've even built most, if not all, of the Irvine Company apartments.
usctrojancpa
Well-known member
CalPac is owned by Donald Bren's brother so a related company but without the deep pockets of iPac.