In this post I asked, “Do any readers out there know of any new homes selling for $60 to $80 a square foot?”
I got this comment reporting second hand a $62 a square foot sale.
Today, I received this email that reports firsthand a $79 a square foot sale, although it hasn’t closed.
I’m an investor currently residing in Gurnee, IL but with ties to Arizona (family). I also have a buddy in Arizona that I purchase real estate with. He just called me today on a few NEW homes he would like us to purchase. I’ll be wiring money Monday morning. The price per square foot was just under $79.00. These homes are the last homes built in a subdivision. We’ll be picking these homes up at ~20% below market value. My realtor buddy is also pulling a 10% commission from the builder. Sweet deal. Couldn’t pass up the opportunity.
Wow! Don’t pass that up.
I don’t know the location, or anything more than in the email… but I can’t think of a scenario where $79 per square foot isn’t a “Wow!”
If such sales are common, and I don’t think they are, they would suggest the spec home inventory will fall faster than I expected.
On the other hand, if such low priced sales were common, it would undercut prices more than I expected, especially in areas were Arizona new home builders are active.
{ 2 comments… read them below or add one }
Jerry 01.18.07 at 10:10 pm
$79 per sqft ??????
yeah may be in the moon
John L. Wake 01.19.07 at 8:12 am
That post was 2 months ago. If that guy’s email was indeed accurate, I doubt any such smokin’ deals are out there anymore.
The new home builders don’t have the fear they had a few months ago when new home inventory was increasing rapidly and no one knew when it would stop.
New home spec inventory is now declining… slowly… but it is now declining.