Monday, February 15, 2010

Shuttered developments

Anyone else noticed how many tracts have closed up shop half built (or less). Driving up La Sierra Blvd it's hard to miss the Riverwalk Vista development. They built the streets, the clubhouse, the models and phase 1. Then they boarded it all up. Now all the homes have plywood over the windows. It's like a new home boneyard. Of course Lake Hills (Brehm) has closed up shop and stopped building. Lots of empty pads up there. Across the 91 is the Highlands, lots of empty lots there too.

The Retreat in South Corona went bust. I'm not sure what the total number of lots are that were left but they were trying to sell them a few months ago as a package deal after the developer went BK.

Stellan Rigde in Riverside is closing up shop. It seems like it's still in business but they have been trying to unload the last few homes for ages (Some are still under construction too). However the development is not built out. They sold all the remaining lots to the owner of the mission inn. He will probably sit on them for a few years at least. How would you like to pay $700k or more for a home and find out that the lots across the street might be weed filled fire hazzards for the next 5 years. I'd be a little pissed off. It also means the HOA isn't coming down to the level promised at build out ($180/mo) it's currently nearly $300/mo.

There are quite fea in MoVal. One tract up near the golf course (Pacific Eagle?) has shuttered up. Although I hear they may start up again. The Beazer development near Nason Street is closing, There's another development of the east end of the city that has been trying to unload its last few homes for 2 years.

Post more if you know em!

9 comments:

ButterMonkey said...

Actually, I'm kind of confused. There is SUCH a lack of inventory out there right now, I thought the new home business might have picked up by now.

Karen's Corner said...

And there's that huge Summerly development in Elsinore by the Links golf course. The models are there, but that's all there is. I can't imagine how much money has gone into the infrastructure, there are pads, streets, and of course all of the plumbing and electrical.

Jeff said...

To be "fair and balanced" there are builders that are actually building.

In Eastvale there are 3 home builders that are currently building AND selling homes. Sedonia by DR Horton, Avonlea by Shea and Sumner Ranch by Centex. I think there is one other but cannot remember the builder.

Why is this? Because of limited inventory in Eastvale like I've mentioned in another post.

I'm not trying to be a cheerleader for Eastvale and I don't work in any industry connected with real estate. I'm just a resident of Eastvale and see daily what goes on in my community and it contrasts greatly with what Golfer is noticing where he is looking to buy.

Remember folks, real estate is very localized. What is going on in one community is not representative of another.

Jack said...

I'm a resident of the Retreat and I'd echo what Jeff said in the previous post. Although there may be potential future build out, the current 400+ units seems to be close to capacity. For-sale signs have slowly diminished over the last year; I definitely do not see a second wave hitting the Retreat that would cause the home values to dip below what it stands at today.

VectorzSigma said...

Wow, I just thought of something - is it possible that the government is plotting to get all these deadbeats into mod'd loans so that they can't walk away from them? It turns a non-recourse loan into a recourse one right? The people who are in deep financial debt can always file bk but the strategic defaulters think they're getting a sweet deal but end up being held accountable. I hate to admit it but I sort of like the idea of keeping deadbeats from being able to walk away.

golfer_X said...

There's not much for sale in the retreat currently but if you check foreclosure radar that place lights up like a christmas tree. There are close to 50 homes with NODs and NOTs already filed against them. If there are only 400homes that means 12.5% of the homes are currently in trouble.

The Yen Guy said...

What you are describing is Slumburbia: housing built often on farmland, typically featuring homes bought with no money down, and/or Alt-A, and option Arm loans, HELOC abuse, where flippers invested, and now experiencing greatly reduced real estate prices, a high rate of foreclosures, shadow inventory, and boarded up homes.

Examples of Slumburbia:
1) Suburb of a fast growing city:
Riverwalk Vista development, Riverside, 92505,
Stellan Ridge development, Riverside, CA, 92506,
The Highlands development, Riverside, 92879, and
North Las Vegas, Clark, NV, 89084.
2) Fast growing city:
North Port, Sarasota, FL, 34288,
Lake Elsinore, Riverside, CA 92532, and
Rancho Cordova, Sacramento, CA 95742.
3) Transit city: Lathrop, San Joaquin, CA, 95330.
4) Second homes for the middle and upper classes: Reno, NV.
5) Low cost instacity for the working class, or lower class:
Lehigh Acres, Lee, FL, 33971, 33974, 33976, and
Perris, Riverside, CA, 92571
6) Failed retirement towns, Port St. Lucie, FL 34987.
7) Failed master planned communities:
Cape Coral, Lee, FL, 33909, and
The Retreat in Corona, Riverside, CA 92883.
8) Town at a long, yet do-able, commute to a desireable city, like San Francisco:
Richmond, Contra Costa County, CA, 94802

ask an arab said...

anyone know anything about the Monarch Pointe development in Corona near Foothill and California? houses are slowly going up. sign says from the high $400's.

i was expecting this development to slash prices but at least according to the sign they have not.

B said...

Jeff,

Lennar is another one. I actually looked at those a few weeks ago. Yep, new construction here is starting to take off. Did a quick lookup on realtytrac and about 400 or so homes show up preforeclosure in Eastvale. If I select auction and bank owned it comes back around 1,500.

Jack,

Guy that ownes the rental across the street is trying to close on a home on Gentle Winds. Nice house for 400k.