TIC Pricing Discussion

[irvinehomeowner]

So I've got some kPolls going:

Stonegate Pricing:http://www.talkirvine.com/index.php?topic=1481.0

Laguna Altura Pricing:http://www.talkirvine.com/index.php?topic=1482.0

But I actually want to discuss The Irvine Company's pricing strategies because I think they are very calculated. They seemed to have divided their model into 3 parts:

1. Low end attached products starting in the $300ks
2. Mid level detached condos starting at $500k going to low $700k
3. High level detached SFRs starting at high $700k and going into the $1m+ range.

Why not make detached SFRs in the mid $600k range? Or detached condos starting at $400k?

As much as it is about profit, I do think it's more about keeping price retention from the 2010 Collection considering they started their SFR pricing in the low $700ks over a year ago. If these homes are more money, then people who bought last year won't feel like they bought too soon. In addition, resale homes in Irvine can remain a healthy market because you can get "more" for the same or less than new homes. I honestly do think that TIC strategically prices their homes as not to erode prior projects and the overall market in Irvine.

Maybe it's just my own psychology, but if I'm looking for a 3CWG/living room/big lot/long driveway/[insert wish feature here] in Irvine, and none of the new homes have it, will I pay similar benchmark prices for a resale home that does? I do think that's one of the reasons why Irvine prices have been more stubborn than surrounding cities... they have multiple new home neighborhoods that keep pricing benchmarks high.

 

[irvinehomeowner]

So both polls say people feel pricing is too high yet TIC has adjusted preliminary pricing on their yet-to-be released homes up instead of down.

I just can't see the demand at those price points and I think these are going to sell slower than they think.

But who knows, maybe their interest list and priority registration list is telling them a different story.

 

[IndieDev]

Since everyone isn't responding to this thread because of the blatantly obvious, I'll spell it out:

Too high. TIC must be run by chimps, the market they are pricing for doesn't exist anymore unless Donald Bren is going to hand out $8,000 checks to buy a house from him.

 

[iacrenter]

TIC is still high off of their 2010 Home Collection but low inventory and poor new homes sales outside of Irvine are on their side. They will squeeze as much profit as they can before we hit another double dip in housing (see LA Times article:http://www.latimes.com/business/la-fi-double-dip-20110223,0,7569825.story). It all depends on how banks manage their shadow inventory. If they speed up foreclosures this year, we may see say a spike in inventory and a corresponding drop in prices. But recent history indicates we are in for a very long drag to the bottom.