February 21, 2006

This says it all


The bubble has popped, and we are in full meltdown mode

Welcome to hell Sacramento

Thanks Trex

23 comments:

foobeca said...

Drop the prices another 30%-40% and I'll be interested.

john in va said...

Looks like all the makings of David Lereah's "soft landing".

42 said...

yech. they're all butt-ugly

keith said...

can you imagine owning a new home in these neighborhoods? I'd want to burn down the sales office

devestment said...
This comment has been removed by a blog administrator.
moman said...

Wow! This is really a full-scale meltdown. Keep up the good work Keith.

I better start saving my pennies in gold bullion for the coming recession

Grinch34 said...

This is concrete proof of a bubble. The range is 22 to 31%. Like I said the bubble will pop a lot sooner than 2008-9-10.

Anonymous said...

Well.... if you can't sell your home, you certainly can't buy the next one!

So if you want to sell your home in LA and go to Sacramento, Pheonix, Idaho, Oregon..... TOUGH because your home is dead in the water.... the effect the other places like Sacramento are dead in the water too!

THE TRICKLE DOWN EFFECT IN FULL FORCE!!!! GREAT! Its about time!

cereal said...

hey keith....i hope this is true - the sacto meltdown brochures. you wouldn't photoshop your fellow bears now would you?

Anonymous said...

I love it!!!

Anonymous said...

If this is soft landing, can't wait till hard landing happens.

Love it.

Anonymous said...

http://www.drhorton.com/corp/GetCommunity.do?dv=W3&pr=41609

hmm!

subprimus said...

Ouch! I see those kind of prices on those size homes all the time... in Cleveland!

Anonymous said...

What is preventing buyers from purchasing homes????


[Gordon is rooting for today's first-time buyers. Several have shown interest in her home, but none has made an offer.

***"It wasn't because the people weren't interested, or because of the price," Gordon said, "it was qualifying" for the loan that held them back.***]

http://www.sacbee.com/content/homes/re_news/story/14214351p-15040403c.html

Some homeowners in sacramento still do not think that their homes are over priced. While their home state is about to implement a 40 year loan with no money down!

Anonymous said...

I think someone needs to dig deeper and find out exactly what these houses have been selling for recently. Also, what have previous promotions included and have extras been gutted from these new "sale" houses. This company is probably trying to convince the marginal buyer that the bubble has already popped... hey look at these reductions, come buy now.

Anonymous said...

The reason these homes are so cheap is this community is in the middle of nowwhere with NO commercial shopping around it. The two closest cities are Linda and Wheatland. Two hell holes. I think Linda is the Meth capital of the world.

Out at the peak said...

If you were selling those in my neighborhood (Sonoma County, CA), they'd be purchased immediately.

Those houses would go for a 110% increase here in Q4 2005 at least.

You would laugh at what I was able to sell for $560K.

(Marin County has us beat though.)

Anonymous said...

Buy The Shasta, get The Shafta.

41cadillac said...

Home builders stocks up today 2-22-06

Name Last Chg Symbol
N V R L P 782.30 +22.30 NVR
WILLIAM LYON HOME 86.62 +0.92 WLS
DOMINION HOMES IN 10.22 -0.02 DHOM
COMSTOCK HOMEBUIL 9.60 +0.04 CHCI
CENTEX CP 71.71 +2.28 CTX
MERITAGE HOMES CO 62.04 +2.89 MTH
HOVNANIAN ENT INC 48.84 +2.79 HOV
TOLL BROTHERS INC 32.65 +1.88 TOL
LENNAR CP CL A 61.13 +2.33 LEN
PULTE HOMES, INC. 40.89 +2.16 PHM
STANDARD PACIFIC 35.39 +1.09 SPF
D R HORTON INC 36.69 +1.64 DHI
BEAZER HOMES USA 67.06 +2.35 BZH
ISHARE DJ R EST I 70.77 +0.76 IYR
FREDDIE MAC 67.05 +0.99 FRE
FANNIE MAE 55.76 +1.73 FNM
SIMON PPTY GRP IN 84.64 +1.16 SPG
CENTEX CP 71.71 +2.28 CTX
KB HOME 70.35 +2.43 KBH
M D C HOLDINGS 64.38 +2.17 MDC
ECC CAP. CORP. 1.94 -0.04 ECR
AMER HOME MTG INV 28.58 -0.23 AHM
BROOKFIELD HOMES 51.22 +1.36 BHS

Anonymous said...

Not surprising. There was the one magazine article about Toll being undervalued, and another article this morning in the WSJ about the entire sector being undervalued.

Waiting for Bubble Rubble said...

Barrons (normally has a lot of negative articles) was bullish on TOLL and long term rates are starting to drift down again. I think these companies will see very little positive news in the coming year, however.

ArroyoGrande said...

This same flyer has been floating around all of the "bubble" blogs...but it lists only CERTAIN LOTS in the development, not all of the houses in the development. How is that proof that the bubble has popped? I know you are all anxiously awaiting the pop, but let's be a little critical of any data, good or bad...

Dave Barnes said...

This ad was for real.
I called the number and spoke with Karen of DR Horton. She said that a thousand people showed up to get the sale price.