This was a well constructed house that came up for sale in September for $3.195 million, which in this market was probably too aggressive for Palmer Hill. No takers, so yesterday it was rented for $9,500 per month. I can’t tell you whether that represents a sum sufficient to carry the place but certainly it’s not going to return great profits to the builder, and I assume he’s just waiting for better times.
I’ll be back in a minute with an exact count of new spec houses currently for sale but I do know that we have over 50 priced over $5 million and 22 priced at $8 million and above. In that latter class, we sold four in the pst six months and zero this year. If they all end up being rented, and many of them are also listed for sale or rent, we’re going to see a further attack on rental prices – these are very luxurious homes, compared to most of our older stock – and a rather miserable year for builders. We have too many houses for the quantity we’re selling, if you hadn’t heard.