chasingpowder
Member
Is this some kind of game the builders are playing, Cielo is significantly lower than Azul and Olivewood. How do they expect people to buy Azul and Olivewood???
New communities in Portola Springs
- Thread starter abhinata
- Start date
NEW -> Contingent Buyer Assistance Program
Anyway, it seems like Shea is still raising prices, but just very small increase. It just seems like they're not doing it because The New Home Company is insane. Still, it doesn't make sense that Cielo 1's price is lower than Azul 3's price since Cielo 1 is bigger than Azul 3 and usually comes with a bigger lot as well. You can see that Cielo lots are 5000+ while Azul's lots are around 4500, at most.
They already made most of their money by selling the land to the other builders. The commissions that IP receives per sale of home is probably not as lucrative compared to selling the land. Raising the price by 100k vs 50k for example isn't really going to make or break the bank for IP.
Quite frankly those prices that they are selling for isn't as extreme as Teresina. Lots of Teresina homes were selling for Baker Ranch SFH prices back in 2018 in 2021-2023. Even Amara in Serrano Summit was selling for more than Teresina with barely any yard space and the houses are smaller than Teresina too. Can you imagine Cielo being sold for 2018 SFH prices?
All due to lack of inventory.
In Irvine about half of the buyers are now all cash. The majority of buyers outside of Irvine are still financing. Most of my financed buyers are putting 30-50% so they can handle the higher payment and most all of that down payment is coming from equity from their current home.
Those sellers are looking for a sucker. I doubt there's anyone stupid enough to pay over $3.5m for a Highland home even if the lot is bigger.
Any well informed buyer would never buy either of those 2 homes at or around those asking prices. Maybe I should list my home for $10m and see if I can find a sucker.
I'm not surprised, I'm seeing more and more "wishful" asking prices even outside of Irvine.
irviniteeee
Active member
This is exactly what I was saying too...Shea is playing some sort of game or something. And given that in the past I've heard that The Irvine Company has to approve the pricing for builders' new homes, how did they approve this? Does this mean that Azul and Olivewood are pricing their homes higher on purpose when they could be priced lower? Who knows.
CalBears96
Well-known member
Cielo's priority list is closed, so people have no choice but to buy Azul. I don't think anyone in his/her right mind would buy Olivewood, though.
I find it to be strange that TIC would approve Shea not raising their prices. However, it's possible that since Irvine Pacific no longer builds home, they don't need to approve anymore. They only did that before since TIC wanted to make sure that IP's prices could stay high. On the other hand, I heard that TIC would get a % of the proceeds, so they should still care about Shea's pricing.
Anyway, it seems like Shea is still raising prices, but just very small increase. It just seems like they're not doing it because The New Home Company is insane. Still, it doesn't make sense that Cielo 1's price is lower than Azul 3's price since Cielo 1 is bigger than Azul 3 and usually comes with a bigger lot as well. You can see that Cielo lots are 5000+ while Azul's lots are around 4500, at most.
sleepy5136
Well-known member
They already made most of their money by selling the land to the other builders. The commissions that IP receives per sale of home is probably not as lucrative compared to selling the land. Raising the price by 100k vs 50k for example isn't really going to make or break the bank for IP.
Quite frankly those prices that they are selling for isn't as extreme as Teresina. Lots of Teresina homes were selling for Baker Ranch SFH prices back in 2018 in 2021-2023. Even Amara in Serrano Summit was selling for more than Teresina with barely any yard space and the houses are smaller than Teresina too. Can you imagine Cielo being sold for 2018 SFH prices?
It sounds like they are playing the game of Monopoly with each other!
usctrojancpa
Well-known member
I'm really curious what Olivewood will do with the lots that are now lingering on MLS unsold.
CalBears96
Well-known member
Not only that, but future lots as well. Are they going to lower the prices now because they can't sell these lots? Speaking of which, Olivewood did manage to sell one more home, lot 98, so now they only got 5 more homes to sell in the current phase.
segalduster
New member
Portola surely has seen a surge
usctrojancpa
Well-known member
All due to lack of inventory.
What % of buyers are you seeing financed? Payments have doubled or more - interested in a view on credit availability. Avg downpayment is 30-50%? Thx
usctrojancpa
Well-known member
In Irvine about half of the buyers are now all cash. The majority of buyers outside of Irvine are still financing. Most of my financed buyers are putting 30-50% so they can handle the higher payment and most all of that down payment is coming from equity from their current home.
CalBears96
Well-known member
These two Highland home sellers are so beyond delusional.
12/23/2023: listed $3,560,000
1/4/2024: price changed to $3,580,000
1/29/2024: price changed to $3,595,000
1/10/2024: sold 2,722,500 (when seller picked up the keys)
1/12/2024: listed $3,480,000
1/29/2024: priced changed to $3,520,000
Did they actually get offers to bump up their prices, or are they just doubling down on their prices?
Who in their right mind would buy a Highland home for $3.5M?
12/23/2023: listed $3,560,000
1/4/2024: price changed to $3,580,000
1/29/2024: price changed to $3,595,000
1/10/2024: sold 2,722,500 (when seller picked up the keys)
1/12/2024: listed $3,480,000
1/29/2024: priced changed to $3,520,000
Did they actually get offers to bump up their prices, or are they just doubling down on their prices?
Who in their right mind would buy a Highland home for $3.5M?
usctrojancpa
Well-known member
These two Highland home sellers are so beyond delusional.
12/23/2023: listed $3,560,000
1/4/2024: price changed to $3,580,000
1/29/2024: price changed to $3,595,000
1/10/2024: sold 2,722,500 (when seller picked up the keys)
1/12/2024: listed $3,480,000
1/29/2024: priced changed to $3,520,000
Did they actually get offers to bump up their prices, or are they just doubling down on their prices?
Who in their right mind would buy a Highland home for $3.5M?
Those sellers are looking for a sucker. I doubt there's anyone stupid enough to pay over $3.5m for a Highland home even if the lot is bigger.
The Motor Court Company
Well-known member
Wonder if
looking at the listing agents names I think they are only targeting one specific demographic group of buyers.These two Highland home sellers are so beyond delusional.
12/23/2023: listed $3,560,000
1/4/2024: price changed to $3,580,000
1/29/2024: price changed to $3,595,000
1/10/2024: sold 2,722,500 (when seller picked up the keys)
1/12/2024: listed $3,480,000
1/29/2024: priced changed to $3,520,000
Did they actually get offers to bump up their prices, or are they just doubling down on their prices?
Who in their right mind would buy a Highland home for $3.5M?
usctrojancpa
Well-known member
Any well informed buyer would never buy either of those 2 homes at or around those asking prices. Maybe I should list my home for $10m and see if I can find a sucker.
Thanks. I'm planning on putting 50% down for my South County purchase in the next year. Interestingly I received the first "price reduction" email from Redfin in a long time on some Mission Viejo listings, a good sign.
usctrojancpa
Well-known member
I'm not surprised, I'm seeing more and more "wishful" asking prices even outside of Irvine.
Irvine_Best_Place
New member
How 30-50% downpayment can come from equity? You need to pay higher interest on HELOC unless you are selling current home.
CalBears96
Well-known member
I know that at least two of Martin's clients moved up and sold/will sell their home. But that would put selling the home as contingency on the loan.