Sacramento - Home Building Boom

<< Back Home                                         Created : Jan 4, 2007
                                                *** Last Updated : Jan 16, 2007


        Sacramento is somewhat different from the Big Three Metro Areas in California.
    Unlike those, it sits on a vast expanse of flat land, with room to grow in all
    directions.

        Sacramento was pretty affordable even during the dot com boom. But during the
    housing boom of last few years, prices have sky rocketed. 

        Bay area residents started taking refuge in Sacramento, as Bay Area home prices
    headed to the moon. Sacramento has added 233K new residents since 2000, a 13% 
    increase. Placer county alone saw a 26% increase.

        Most of the new homes have gone up in Placer County, as is pretty clear from
    just driving around. Several new communities built in the last few years.


        
Visited Development Builder Location
Chelsea @ Empire Ranch Elliot Homes
Villa Lago @ The Promontory Toll Brothers
Villemont Tim Lewis
The Premier @ Long Meadows JMC Homes
Casabella @ Crocker Ranch JMC Homes
Mirabella @ Crocker Ranch JMC Homes
Vianza @ Crocker Ranch JMC Homes
Shadow Creek @ Fiddyment Farm Shea Homes
The Orchard @ Fiddyment Farm Morrison Homes
Avonlea @ West Park Centex
Amberley Place @ West Park Pulte
Meadow Gate @ West Park Centex
Laureate @ West Park Lennar
The Club @ West Park Del Webb

        Developers have plans for several more. And each of these proposed communities
    is much larger than the ones I saw in Brentwood. The lots there could accommodate 
    a few dozen homes. But the amount of buildable land in just about every development 
    I visited here, was good for a few hundred homes. I have made an attempt to capture 
    it in the pictures, as much I could.

       And yes, these streets are so new the Google Geocoder does not recognise most of
    of them, so no map. Google Maps recognises some of the streets, but not all.

           Slideshow : HBB Visits Sacramento

        The highlight of the trip was Villa Lago, a Toll Brothers community and getting
    a first hand look at their McMansions. They look pretty nice and expensive. If I 
    lived in one of those, I would'nt wanna leave for work in the morning.

        Quite a few of them already completed, had "available" signs on them, which 
    indicates that either the buyer backed out of the contract or it was a spec unit.

        Driving around I came across a small street which can aptly be called the 
    Flipper Alley. There were seven for sale signs on  in Roseville,
    just next to the Mirabella Development. That speaks volumes for the state of the
    housing market here.
    

        At the end of the day, I decided to walk into the Sales Office of The Club. The
    staff was pretty friendly and courteous, and I did'nt feel pressured. The sales 
    woman at the very start pointed out that this was a 55+ community, and I looked too
    young to live there. I could buy one (for my mother) but would not be able to live
    there myself.

        She volunteered that they were giving huge discounts and incentives on the homes
    that were already built, compared to if I wanted to get a new one built. In that
    case the deposit would be 10K, and it would take about six months to be completed.

        On the question, if I changed my mind (her face immediately dropped) about the
    purchase later, I would loose my deposit.

        And they had loans for every one, full income, no income, some income, employed
    or unemployed. Thats what she had been told, and she said that with a sense of 
    disbelief.
    
        My impression was that she was just doing the job she was hired to do, and was
    herself in awe of what she saw was happening around her.

        Later in the evening as I strolled in the downtown, saw three sale signs on a 
    single block of P Street between 22nd & 23rd streets. It was dark, and I felt using
    flash could draw unwanted attention, so no pictures.

        Yet another testament to the state of Sacramento's Housing Market. 

        Though the Big three get most of the press, when it comes to California housing
    market. There are some excellent blogs on Sacramento's Housing Market.

            1. Sacramento Land(ing)
            2. Sacramento Real Estate Statistics
            3. Flippers In Trouble

        And yes, the infamous flipper kid Casey Serin of IAmFacingForeclosure.com is 
    from Sacramento.


           The Community Counts for Sacramento, Public(164) + Other(72) = Total(236)

          Standard Pacific  (8)    K Hovnanian (22)    Lennar (18)    Centex (20)
          Richmond American (6)    D.R. Horton (18)    Ryland (7)     Pulte  (10)
          Toll Brothers     (2)    KB Homes    (13)    Beazer (17)    NVR (0)
          Technical Olympic (0)    Meritage    (10)    Pardee (2)     Morrison (11)
          Parkland Homes  (4)      John Laing   (8)    Shea Homes(10)     Elliot Homes   (11)
          JTS Communities (8)      JMC Homes    (12)   Tim Lewis (11)     RB Communities (8)

 
    12/17/06, SF Chronicle - It's a buyer's market in Sacramento

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