Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Micawber who wrote (14957)	11/10/2003 8:37:33 AM
From: MulhollandDrive	Respond to of 306849

more on the million+ homes..this is from a subscription newsletter , so no link, referencing sedona, az MARKET OVERVIEW In a nutshell, the upward trend in valuation we've seen across the board in homes and land over the last decade, particularly the last five years, is accelerating. That's something we've been predicting for some time now. It's simple Economics 101. The supply of available land continues to diminish while demand pressure builds, thanks to the demographic inevitabilities of the Baby Boom generation. We've seen phenomenal buyer responses to new land offerings in the past few months as people realize that we're not going to see much more come on the market. More on that later. Homes In the previous decade ( from 1992 through 2002), the average selling price of homes (free standing, single family, site built - i.e. not mobiles or condos) in the Sedona area (including the Village of Oak Creek) has advanced from $178,900 to $348,625. That's an annual average increase of about 9.5%. Comparing the first ten months of 2002 with the same period in 2003, we have seen a 16% uptick in the average selling price. It's $391,373 currently. By the way, that figure hit $409,000 this summer and I expect to end the year closer to that after the busy fall season sales figures come in. Inspite of the jump in prices generally, the luxury market for homes is a bit soft. Builders, have somewhat overbuilt for the moment - there are over 60 homes now available in the million+ range (compared to 3 or 4 back in 1997) so prices are rather negotiable.

To: Micawber who wrote (14957)	11/10/2003 10:56:13 AM
From: GraceZ	Read Replies (2) \| Respond to of 306849

Thankfully the rest of the US isn't like LA. The big national home builder I do a lot of work for has limited their participation in the CA market, they build very few homes in CA because growth restrictions have made it impossible to grow their business there. ryland.com Meanwhile they have great growth prospects in areas with a far lower median home price. Here's one of their up and coming markets: ryland.com As well as my local area market which is booming, most of these communities are within 30 minutes of decent employment opportunities: ryland.com One can't look at CA and make an assessment about the state of the national market.