R.I.P. McMansions (Chesapeake: middle-class, for sale, condo)

[D train outta nowhere]

News Headlines



Sorry to all those around the Shore Dr. Riviera.

Excerpt follows:


Death of the 'McMansion': Era of Huge Homes Is Over


Published: Thursday, 19 Aug 2010 | 11:42 AM ET

By: Cindy Perman
CNBC.com Writer



They’ve been called McMansions, Starter Castles, Garage Mahals and Faux Chateaus but here’s the latest thing you can call them — History.

In the past few years, there have been an increasing number of references made to the “McMansion glut” and the “McMansion backlash,” as more towns pass ordinances against garishly large homes, which are generally over 3,000 square feet and built very close together.
What sets a McMansion apart from a regular mansion, according to Wikipedia, are a few characteristics: They’re tacky, they lack a definitive style and they have a “displeasingly jumbled appearance.”
Well, count 2010 as the year the last nail was hammered into the McCoffin: In its latest report on home-buying trends, real-estate site Trulia declares: “The McMansion Era Is Over.”

[tvpirate05]

I live out in Greenbrier. There's a neighborhood across the street from mine, and a house selling for somewhere in the $600s. That's a reduced price; it was about $750K. In July. Of 2009.

I've kinda wondered why so many new neighborhoods are more McMansionvilles, and less of the average, middle-class neighborhoods from the late-70s/early-80s. Have tastes really changed that much in 30 years?

[citydweller]

The run up in values of property and relaxed lending are what lead up to a lot of the McMansions being built. Now that values of properties have come down a lot and lending has tightened its belt, I think a lot less people will have the ability to afford these houses.

[chesapeakesim]

It's amazing what people were paying for these places back in the day. There is a neighborhood near me called Cahoon Plantation. We went to an open house back in the mid 2000s just for fun and they wanted like $850K for this place. It was a nice house, but had almost no landscaping and was right on top of the road and neighboring homes. Not even enough room to play catch. I ride my bike through there sometimes and it is kind of eerie and depressing, almost like a ghost town. Empty lots, no kids playing, no one out barbuecuing or sitting on there front porch. Prices there have come down a couple of hundred thousand on average, but I would still take a more established neighborhood like Las Gaviotas anyday.

[chesapeakesim]

Originally Posted by citydweller

The run up in values of property and relaxed lending are what lead up to a lot of the McMansions being built. Now that values of properties have come down a lot and lending has tightened its belt, I think a lot less people will have the ability to afford these houses.

Yep, exactly. The only reason people could afford them in the first place is that their own house went up so much in value. I was playing around on Trulia the other day and they have the ability to tell the sales price history of houses that are currently for sale. One house sold for $512K in 2010, had sold for $650K in 2006, but had sold for $155K in 2000. Basically the people that sold in 2006 made $500K. That much in equity would make a $750K to $1 million McMansion not seem that bad. However, without that the price would seem just plain silly.

[D train outta nowhere]

What happened on Shore Dr. is just an abomination. It is the weirdest mix of urban glut I've ever seen. On one side are the Prius drivers and Hummers with soccer ball decals (puke), and on the other side you have well, whatever, just don't go out after dark. Irony is, if it were ever allowed to normalize and go "medium ballpark," without all the safety issues, etc., then it would just go right back to McMansionville. Sky-high prices.

This is why we can't have nice things!

[tvpirate05]

Thanks for the explanation! :-)

I was actually off in my numbers. It was going for $900K around last summer (okayyyyy, $899,000 ), down from a million from late-08. It's now "only" going for $749.9K.

It still hasn't been inhabited between July 2009 and now. And I imagine for that price, it won't be anytime soon either.

[TEKSRZ]

Originally Posted by chesapeakesim

Yep, exactly. The only reason people could afford them in the first place is that their own house went up so much in value. I was playing around on Trulia the other day and they have the ability to tell the sales price history of houses that are currently for sale. One house sold for $512K in 2010, had sold for $650K in 2006, but had sold for $155K in 2000. Basically the people that sold in 2006 made $500K. That much in equity would make a $750K to $1 million McMansion not seem that bad. However, without that the price would seem just plain silly.

You said a mouthfull there. I remember the average house from the early to mid 90's they were going for 155-200K tops. Same home in mid 2000's going for 1/2 a mil. Same house, which was basic in construction w/ no real upgrades and a qtr acre lot. I knew right then and there this was bad news...I'm just surprised it lasted as long as it did.

[emeraldgirl]

Originally Posted by TEKSRZ

You said a mouthfull there. I remember the average house from the early to mid 90's they were going for 155-200K tops. Same home in mid 2000's going for 1/2 a mil. Same house, which was basic in construction w/ no real upgrades and a qtr acre lot. I knew right then and there this was bad news...I'm just surprised it lasted as long as it did.

And this is why we are in the predicament we are in right now in regards to the housing crisis.

I never really saw the appeal though for the McMansion. (even if I had the $$$$) I'll take my little beach cottage any day over an overpriced tacky POS.

[tvpirate05]

Originally Posted by chesapeakesim

It's amazing what people were paying for these places back in the day. There is a neighborhood near me called Cahoon Plantation. We went to an open house back in the mid 2000s just for fun and they wanted like $850K for this place. It was a nice house, but had almost no landscaping and was right on top of the road and neighboring homes. Not even enough room to play catch. I ride my bike through there sometimes and it is kind of eerie and depressing, almost like a ghost town. Empty lots, no kids playing, no one out barbuecuing or sitting on there front porch. Prices there have come down a couple of hundred thousand on average, but I would still take a more established neighborhood like Las Gaviotas anyday.

I noticed that as well. 4000-sq foot homes that are $750K, but the backyard is about the size of something you'd see at a townhouse or condo (exaggerating of course, or am I?), and then no space between the neighboring houses. WTF?

There's other parts of Greenbrier or Kempsville I'd be perfectly content to live in, with just as much space (or not much less), and a huge backyard. Hunningdon Woods in Chesapeake comes to mind. True suburban neighborhoods with a unique mix of houses, not the pre-packaged McMansions that all look alike. Most importantly, more than half the cost, even in this overpriced area!

If anybody needs me, I'll be holding my breath to see prices go back to c. 2002-04 levels. :-P