Anyone else wondering where buyers for 16000 new OC homes will come from? (Los Angeles: for sale, real estate)

[bouncethelight]

Originally Posted by wrcousert

They are totally nuts. The housing market is dead.

The housing market is different today than it was in 2007, but it's far from dead.

[bouncethelight]

Originally Posted by wrcousert

Will they get their own Metrolink station?

San Juan Capitrano already has a Metrolink station - a really nice one! It's in the oldest part of town, in the historic train station.

[Fontucky]

Just think of all those extra cars choking an already choked up SJC.

[bouncethelight]

San Juan Capistrano is one of my favorite places on earth. The Ortega Highway is one of my favorite roads to drive. And adding more cars in that area is NOT going to be a good thing.

[recycled]

I live close to the 2000 home project mentioned in Lake Forest. I pedal by the vacant parcels of Shea Ranch every day on my bicycle commute to work. In a couple of weeks, the 2 mile long Alton Parkway extension will open up, linking the Foothill Ranch part of Alton Parkway (near Walmart) to the current deadend of Alton Parkway at Irvine Blvd. (near the OC Jail on Musick). The Alton Parkway extension was put in to allow better access to and from the future development in the Shea / Baker Ranch project (alternative to Bake Pkwy). It will probably take a few years for that project to get rolling, and they are probably hoping that things will get better, not worse in the real estate market.

KB homes is building a big townhouse development in Lake Forest at Los Alisos and Jeronimo, right next to the Target store. Those are selling in the 300K to 400K range with no Mello Roos, so it would be interesting to know how much of that project has sold as a barometer of how well the Shea Baker Ranch project might go.

[Fontucky]

Originally Posted by bouncethelight

San Juan Capistrano is one of my favorite places on earth. The Ortega Highway is one of my favorite roads to drive. And adding more cars in that area is NOT going to be a good thing.

Agree.
Agree.
Agree.

[JohnG72]

Originally Posted by Charles

That's really what the point of my thread was.....the buyers, who is going to buy the homes - especially with all the inventory, shadow inventory, foreclosures, etc.

Asian buyers are beyond nuts. They think housing is the be all and end all.

Here in DTLA, there were a few buildings where units were $350-400K in 2010 and early 2011. Sold through instantly...in one building it was 77 units, sold in 1 day, almost entirely to asian buyers.

I think the idea was that their kid would live there for 4 years while attending USC and then they'd rent the places out.

Well, the boobs are about $50K underwater based on current selling prices of short sales(already LOL). But they sure love those new build places. When they go to rent...based on current rents in the 1700-1800/mo range...heck, I'll give em the high end at 1800 for anything around 800-900 sq ft...and $400/mo+HOA, their gross return is around 4.5-5% if they paid cash. Of course thats not accounting for any months of vacancies. Basically a horrible financial move.

Anyway, thats who will buy those places....asian cash buyers utterly desperate for new build.

[ysr_racer]

If you biuld it, they will come...

[EscapeCalifornia]

So are these going to be $800K+ houses on 1/6 acre lots or $500K+ "houses" 6 inches apart with shared driveways?

[a34dadsf]

Originally Posted by wrcousert

They are totally nuts. The housing market is dead.

They build those homes so cheap though. I did some temp work on the weekend where they were building those homes. I couldn't believe what I saw. They actually have this Styrofoam concrete stuff. Its completely Styrofoam with a 1/10 inch thick concrete layer surrounding it. They put it around the edges of the roof. When its installed it looks like solid concrete. Talk about cutting corners! The entire home is built like that. When its done it looks like a solid home but once you look at the fine details you will see all the spotty construction.

That's how they make their money these days. Selling overpriced homes and tricking people into buying them. They could sell them at a steep discount and still make money on it. Plus lets face it, south oc is still in a bubble if you ask me.

I'd personally rather have 500k worth of stock rather than a 500k home in south OC.