Me and the wife took a drive over to Bridle Creek today to see a REO property. It was a bust, the house was in bad shape and they wanted way too much for it. On the way out I stopped in at the sales office and picked up the latest sales sheet. Everyone in that tract that is trying to sell a home is now hosed. Lyon has dropped the prices $230k+ for the new phase. Homes that were starting at $725k now start at $499k. That's gotta sting for those desperate sellers and it even undercuts all of the bank owned homes. The REO property we looked at was priced at $700k and now they are $648k new from the builder. Hmmm let's see, $648k for a new one where I pick my own options or $700k for a half thrashed one painted green in most of the rooms and pale pink in one of the small bedrooms. The 2 year old's artwork on the walls is no additional charge!
I have two price sheets from Bridle Creek. The old one is from July of 2007 and I picked up the current one today. So these prices are 7 months apart.
Plan 1 Appaloosa, 2899 sq/ft.... was $744k.... Now $499k
Plan 2 Chestnut, 3266 sq/ft.... was (none avail) Now $525K
Plan 3 Lippizan, 3512 sq/ft,...was (none avail) Now $547k
Plan 4 Palomiono 3385 sq/ft, was $863k....Now $585k
Plan 5 Pinto, 3701 sq/ft, was $891k....Now (none avail)
Plan 6 Shetland, 4023 sq/ft, was $899k, Now $579k
Plan 7 Dapple, 3512 sq/ft, was $783, Now (none avail)
Plan 8 Andalusian 4364 sq/ft, was $952k, Now $648k
Plan 9 Breton 4830 sq/ft, was $950k, Now $599k
As you can see some of these homes are down over $300k from last July. It looks like they dropped the price by approx 30% from July. I don't have any price sheets from later in the year to compare. I did pick one up in Nov and the prices were still quite high but I think they were lower than the July price sheet I have. I guess it does not matter though. What matters is the huge price drop. This will put pressure on the other builders in the area to compete. It will make the agents and banks cringe when they see it. Every resale home in the tract is now overpriced by a bunch.
This little afternoon trip made my weekend!