Home Buying in Dublin>Question Details

bubblyben, Home Buyer in Dublin, CA

KB Homes selling 900K homes which sold for 200K less six months ago.

Asked by bubblyben, Dublin, CA Fri Jul 12, 2013

I am seeing KBHome selling homes over 900K. As early as this year, the same houses were only selling in 680K to 720K range. Is this home 2600 sq ft worth the price? What's the market trend in the last few weeks with rates going up?

Help the community by answering this question:

Answers

11
It's not a matter of what the homes are worth - it's a matter of what buyers will pay to get one. As long as buyers are willing to pay to get a new home, builders will continue to charge top rates. It's simple market economics 101.

The Dublin market overall is up 17.7% from the same period last year. Newer homes, however, built after 2010, are up 28.2%.

No one knows where we will be in another 6 months, however, many are saying that the market is beginning to slow. Interestingly, it was beginning to slow BEFORE rates started going up, so it's possible that any short-term (the immediate reaction whenever rates increase) may be hidden in a declining market.

Here is a post that may be helpful:

Summer Heats Up; Market Cools Down
http://ebpublishing.com/index.php?option=com_content&vie…
.
1 vote Thank Flag Link Sat Jul 13, 2013
Well, after last two months of strong sales data, the moderation appear to be now officially happening. We'll probably if the current buyers are going to rush and lock at the high prices or wait and see.

http://www.bloomberg.com/news/2013-08-23/sales-of-new-homes-…

What are your thoughts on the prices with sales falling?
0 votes Thank Flag Link Fri Aug 23, 2013
We were called last month with an opportunity to buy a new development home in Dublin where the previous buyers cancelled. However the price we were offered was much higher than anticipated, higher the the prequalification price of the current release. I wonder how much info is exchanged between the preferred lender that you must prequalify with in order to be on the priority list and the builder. Are the builders truely following, the "list," in order of preapproval by date or are they just picking and choosing based on overall income and down payment.
0 votes Thank Flag Link Thu Aug 8, 2013
I have the same thought - they pick. I think the list is dwindling though, so they should be calling you soon!
Flag Fri Aug 23, 2013
The prices appear to be going down. I am seeing price reductions. However, it looks like the new homes I have been following (KB Home and Brookfield Windwood - I have the same experience as "Hopeful") are trying to maintain the high prices. We'll see as the slower season approaches and higher interest rates prevail. I am surprise no contract cancellations!

Thanks "Hopeful_buyer" and Daniel for sharing.
0 votes Thank Flag Link Wed Aug 7, 2013
The truth is that prices are going down, just see in this site the "Dublin market trends" in the local info menu, for a 3b house, juts in one week, from July 17th to July 24th, 4.8% less!...don't believe in realtors, brokers or agents, they just need prices go up to survive...
0 votes Thank Flag Link Wed Aug 7, 2013
I have been following the Dublin Home prices since January this year and price have gone crazy in the last 6 months. Prices have gone at least 100-200K on most of the new homes and even on the old homes. I see some change in the market at least in the last few weeks. I was interested in KB Homes @Fallonridge property when they said the prices were going to start from mid 700K. All of a sudden they increased the starting price to 825K and highest model is now going for 939K. I don't think that there is much demand or interest in the KB Home because I have been constantly getting calls from them to see if I am interested in buying and I also received an email from Brookfield properties that they are going to give 2500 referral if I refer any friends. Before they were not willing to even talk and homes were going in matter of hours when they released. I see some change in market and I hope the market becomes some what sane for the buyers.
0 votes Thank Flag Link Sun Jul 21, 2013
To be honest, I don't think we're seeing a bubble. Here's a post that may be helpful:

Current Bay Area Market NOT A Bubble: Top 5 Buyer Recommendations
http://www.trulia.com/blog/carl_medford/2013/04/current_bay_…
.
0 votes Thank Flag Link Wed Jul 17, 2013
Thank you all for your responses. If I bought a house 6-8 months ago, I will be very happy (who wouldn't with a 30% increase and low rate?). Right now though, looking at listings and past sale prices, it looks like quite a number of the houses are selling near, if not over, the 2006-2007 bubble prices. That's why I am rather hesitant to buy as if history repeats itself, the recent buyers will become the next underwater home owners.

I will leave it at this and I'll check back in 3 to 4 months! We'll see the effect of the rates on home prices and recent transactions. Thanks again for the valuable inputs!
0 votes Thank Flag Link Mon Jul 15, 2013
Yeah you maybe right. I bought my first home in 2004 and the market was also pretty crazy at that time. Ultimately I think you should only buy a place that you are happy with and one that you can afford. When we bought in 2004 that's exactly our mentality--as long as we could afford the place and we love the place, so what if the home values decrease? Worse case is we are stuck with the house for 10+ years.

I would definitely not recommend people buying because they think the value will definitely go up and bank on the fact that they can trade up later. I have a few friends who bought a crappy place in 04 using adjustable interest rate--it was a lose-lose.

Good luck!
Flag Tue Jul 16, 2013
Homes in Dublin (and CA in general?) have been trending upward the past 6-8 months. My home has increased in values for close to 30% the past 8 months. I don't see any slow down despite the rates going up.

Regarding your question on whether this 2600 sq ft worth the price, no one can answer this except you (and other buyers). I would compare with other similar houses and also assess what's your alternatives if you don't buy now. Let us know if you have more questions!
0 votes Thank Flag Link Mon Jul 15, 2013
Hi bubblyben,

"What's the market trend in the last few weeks with rates going up?"

I don't know if a few weeks is enough time to identify a trend; however, here's the 2012/2013 Mid-Year Real Estate "Weather Report" (Alameda and Contra Costa counties) from the Bay East Association of REALTORS®:
http://www.youtube.com/watch?v=xP-dAj8h9ms&feature=playe…

"As early as this year, the same houses were only selling in 680K to 720K range."

I believe the video above provides why!

-Steve
0 votes Thank Flag Link Sat Jul 13, 2013
The first 6 months of the year saw strong demand for housing and limited housing inventory. This imbalance caused a sharp rise in pricing. Inventory levels are rising along with interest rates. IMO this will cause the price increases to slow somewhat. With regard to new home prices, there is still limited inventory. If the builders are getting $900k, then that is what the market will pay. Homes are worth what buyers will pay.
Good Luck,
0 votes Thank Flag Link Sat Jul 13, 2013
The truth is that prices are going down, just see in this site the "Dublin market trends" in the local info menu, for a 3b house, juts in one week, from July 17th to July 24th, 4.8% less!...don't believe in realtors, brokers or agents, they just need prices go up to survive...
Flag Wed Aug 7, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer