State of the spec house

So far this year, a third of the way through, twelve houses priced at $4.5 million and up were sold, eight of which were spec houses. That compares to forty-six in that range sold in 2007, twenty-one of which were spec.  As of today, we have sixty-one spec houses actively listed at $4.5 million or above. If no more come on (dubious, if you look around town and see all the houses nearing completion), we have only 2 1/2 years inventory.  Of course, not all those houses have to be sold – a number of the more solvent builders are renting their projects out, hoping for better times to come, when (they hope) a used house will be worth more than it is today. Maybe.

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2 responses to “State of the spec house

  1. anonymous

    Just another Ponzi scheme: used houses worth anywhere near comparable new houses; but a sucker is born every day, right?

  2. Not sure if you caught the latest in Southern California, Guaranty bank is tearing down new, never lived in homes, and using TARP funds to do it. I wrote a blog post about it…