Wednesday, October 10, 2007

"Giving up on a fast-falling market"

From CBS Evening News:

In California, where developers have been racing to turn farmers' fields into subdivisions, they're now walking away, leaving houses partially built. Those who have already moved in wondering what will hit next. “I'm concerned that once the weather starts getting bad, there's tile piled on the roof that could just fly off,” homeowner Marius Gieske told CBS News correspondent John Blackstone.

Dunmore Homes had building projects in a dozen California communities from Bakersfield to Yuba City. Now it’s halted work everywhere, giving up on a fast-falling market. “We couldn't sell a moving target,” said John Slaughter, vice president of construction and operations for Dunmore Homes. “What we wanted to do is stop.”


Sippn said...

I thought I read a quote from the same guy yesterday saying they were going to make the homes "weatherproof" before they mothball them - that generally means laying out roof tile.

I also remember seeing those concrete roof tile fly in a news video - of a tornado - there were flying pigs too.

SacramentoCrash said...

I can't believe "Jet Plane" Sid got onto the national evening news.

He probably will never show his face at the development. He already knows about Paseo West and the Anderson Homes debacle.

Any attorneys out there that can answer the following:

If the developer goes out of business who will address home warranty issues?

Can bankruptcy shield the buyer of the development company from prior warranty issues?

Who pays the HOA dues if the developer slows construction significantly?

Will the police even have time to respond to pull squatters, partiers, teens having sex or snorting drugs out of a property?

It is a civil matter unless the officer can prove that there is trespassing. Squatters in Southern California have been making fake leases and forging the former homeowner's signature. These fake leases are shown to the responding officers to "prove" occupancy rights.

anon1137 said...

Check this out, Stephen Levy calls the bottom. Could he be posturing for a job with CAR or NAR?

Although buyers are enjoying more power in some markets for now, Stephen Levy, director of the Center for the Continuing Study of the California Economy, thinks the supply and demand curves might intersect sooner than in other housing cycles. . . . . "I think we're at the bottom now for resale activity and (new home) permits and the real question is how fast we go up," Levy said. "These levels are way below what the job and population growth would support. But it all depends on how fast prices adjust."

Sac_Sol said...

"These levels are way below what the job and population growth would support."

I spit coffee out my nose laughing at that comment.

andnee said...

Its sad to me how outrageously wrong all these "experts" have been over and over. Then they reassess thier forecasts and are so far off its laughable. Makes me wonder who is paying them and why they feel getting real data out to people is a bad thing. Or maybe they just have a happy denial stick up their large tushies. You can paint up a pig as much as you would like, but it is still a pig. I check the MLS daily and the amount of homes listed continues to rise, as the amount of homes sold continues to decline. Then you throw in REO and defaults going up every month, and there is no immedate end in sight to this. People need to understand this "correction" is not a bad thing for the majority of people, this is a GREAT thing, because it means people will be able to afford homes again, and still have money left over to spend in the economy. Not to mention that our CHILDREN may now have a chance in hell of buying a home at some point in the future.

Jacob said...

I guess he just means the bottom in regards to total sales, not prices.

Even if that is true, and it might be since sales are so low now, we will still stay at this level for years until the prices slowly come back down and inline with wages for this area.