Directories
Quick Searches
Find a Job
Quick Search
For Employers
Yahoo! HotJobs Local Search
FALLBROOK: Homeowners upset by 'downsizing' plans
Preference for smaller houses a new trend among developers
By TOM PFINGSTEN - Staff Writer | ∞
A sign points the way to the sales office at Shady Grove in Fallbrook this week. The developer of the subdivision wants to shrink the homes that have not been built in order to sell them faster. Photo by Hayne Palmour IV FALLBROOK ---- Homeowners in the new Shady Grove subdivision said Friday they were concerned that their upscale houses will plummet in value if the developer of the neighborhood is allowed to shrink the size of most of the homes that are still in the planning stages.
Meanwhile, real estate industry analysts said the decision by KB Home to downsize the Shady Grove houses is just the latest example of a regional trend.
Those who already paid top dollar for custom-quality homes in the neighborhood say they're unhappy with the idea of smaller, cheaper homes filling up the rest of the subdivision.
Shady Grove resident Mickie St. Pierre said Friday that the 3,285-square-foot home she and her husband bought there cost more than $700,000 last year. After extensive upgrades, she estimated it would now be worth about $1 million, if the market recovered to where it was before the downturn.
While it is uncertain what effect the smaller houses would have on the value of existing homes in the development, St. Pierre said she cringes when she thinks about it.
"You're talking about homes right around the corner that would go for $300,000 or $400,000, so (ours) would probably go down into the $700,000s or $800,000s," she said. "It's a huge loss."
Nicole Dennison, president of the Shady Grove Homeowners Association, said she and her husband bought their "dream home" at the hillside development last year, and that they were dismayed by the builder's plans for plainer, cheaper homes.
"I'd love to see KB Home stick it out and keep offering the original models they advertised," Dennison said. "I understand that it's business, but they'll cut the legs out from under the homeowners. (The owners) will never recoup what they've put into these houses."
On Friday, experts said many developers have decided to switch from large floor plans to smaller homes halfway through development because small houses have been selling better since the downturn began in the real estate market.
KB Home officials said earlier this week that they plan to substitute smaller floor plans for many of the homes they are trying to sell in the proposed 101-home development at Stage Coach and Gum Tree Lane.
The company has already sold about 20 of the original models, which range in size from 2,250 to 3,400 square feet. The latest proposal calls for models of 1,690 to 2,275 square feet on most of the remaining open lots. The builder has filed for a permit with San Diego County planners to authorize the revisions.
Alan Nevin, an analyst for real estate tracking firm MarketPointe, said Friday that the Shady Grove case "is not isolated at all."
"We're seeing it throughout Southern California, primarily in areas where the homes that were being built were much larger than the homes throughout the general neighborhood," Nevin said.
He said builders who replace original floor plans in their developments with smaller homes are usually trying to sell all the lots quickly.
"The reality is that firms like KB Home will probably wind up building those new (smaller) homes and making little, if any, profit, just to use up the lots," said Nevin. "In the world of publicly held builders, land is a liability, not an asset, so they try to remove themselves from heavy lot positions, and one of the ways they can do that is by downsizing their homes."
St. Pierre said nine homes at Shady Grove have been sold and occupied, while seven others have been purchased and are either being built or prepared for construction.
She said most of the homeowners acknowledge that builders are taking a beating in the current market downturn, and that some changes may be necessary to still make a profit.
"Shortly after we moved in, they dropped the price of the homes, and we understood that. It was a hard pill to swallow, but that was the market," said St. Pierre.
On March 20, a KB Home planner met with the homeowners and told them about the idea of switching the last 65 homes to be built in the neighborhood to smaller models. St. Pierre said the planner showed them drawings of the new floor plans, which she described as far less desirable than those of the original homes.
"The homes they're proposing to put in, they're all just boxes," she said. "They don't have anything to offer as far as character or design."
Meanwhile, St. Pierre said every homeowner in Shady Grove has signed a letter that will be mailed this week to San Diego County planners, requesting that they reject KB Home's proposed changes.
"We'd like to see the values of our homes increase when the market increases, and not decrease because of KB Home's decision to change the demographics of this community," she said.
"We've all put a lot of money into our brand new homes ---- for most everyone here, the investment is over a million dollars, and to turn more than 60 percent of this community into $300,000 homes ... is not right, it's not fair."
Contact staff writer Tom Pfingsten at (760) 740-3516 or tpfingsten@nctimes.com. Comment at nctimes.com.
More Stories
Advertisement
Liz wrote on Mar 28, 2008 5:53 PM:So you overpaid for your tacky McMansion - overpaid A LOT - then sunk 300k (!) into remodeling it. What a human tragedy that your house is only worth 700k (if that).
/wipes away a tear
jklip wrote on Mar 28, 2008 7:04 PM:Forget it KB! You sold the planning commission and the County that your Shady Grove project with it's large upscale homes would be a perfect fit for the once rural setting. Now you want to dump smaller tract homes into the same locale because the market has changed? That's the risk you take. Sit on the property till the market rebounds or walk away. Wait, I have a better idea. Keep the original plans but lower your price to the new proposed amounts. KB only lost 268 million in the first quarter of 2008.
JB wrote on Mar 28, 2008 9:03 PM:jklip! your right! KB ruined the landscape, changed my view of the mountains, and know you want to devalue the neighborhood. Cut your losses and sell to a real developer who cares about the community.
JSten wrote on Mar 29, 2008 12:24 AM:Its kind of poetic, an article about McMansions, and those that are marketing them, having to move downscale to sell their still overpriced products, and a list of employment ads, all part time low paying and entry level, right here on the same page.
KB = Bottom of the barrel wrote on Mar 29, 2008 7:20 AM:KB has always been on the low end of the spectrum. Cut and run. They don't care about anything but profits.
Why anyone would buy a tract home in Fallbrook is beyond me. We bought a great custom home on a quiet, secluded lot with a beautiful view. Now THAT is what Fallbrook is all about.
reality wrote on Mar 29, 2008 7:45 AM:you bought at the height of the market, that's why u r upside down. I got news for u, its not worth a million now and won't be ever again. This is a housing correction that is good for us all. No more mansions, its a thing of the past. That letter to the planner will do nada. Suck it up and deal with it. I have no sympathy for you.
Susan wrote on Mar 29, 2008 8:14 AM:Bulldoze em all and return it to the beautiful open landscape it was. Shady Grave...that's what it should be called.
I have no empathy for yuppies moving into our rural village and then ruining it. Go back to where you came from.
Janet wrote on Mar 29, 2008 9:59 AM:Houses that are around 1700 to 2300 sq. ft. aren't shacks. I welcome the trend to smaller homes. I bought my house in 1988, but would buy smaller today. It's 2,300 sq. ft. and has tons of room-- Four bedrooms, family room, office, small granny flat. Of course, we don't have a separate room for a home theater, and the master bath/closet area is only 20x12, so some people would say we are really suffering.
izzy wrote on Mar 29, 2008 10:02 AM:What does kb homes, have to to do with your loss Nicole, or the rest of you brain dead fools.we have had housing bubbles,stock market bubbles,toy bubbles,fad bubbles---this is nothing new!....Every one has been talking about this housing bubble since 2003....remember greenspan and his frothy market comment----you people, threw away your carefullness and replaced it with pink flamingos.
John wrote on Mar 29, 2008 10:16 AM:The free market at work. Sometimes people and businesses make poor investments betting on the values increasing. I have some Enron stock myself. When you look at the big picture - the big houses are not going to hold their value. Baby boomers are going to downsize as they get older. Smaller, low maintenance homes will be more desirable and there will be a glut of big houses on the market for years to come. It's all supply and demand. The bottom line here is: buy a home to fit your lifestyle and budget and enjoy living in it. If you make a profit on it one day, that's just icing on the cake.
Been there done that wrote on Mar 29, 2008 10:22 AM:Sold my 3,000 sq ft home with guest house in 2003 after my kids went to college and built a 2,000 sq ft home. I don't miss all the expense. Utilities, upkeep, and too much space for 2 people. It wasn't a dream home anymore, it was a hassle. Smaller homes are the trend for an aging population.
Hooverville wrote on Mar 29, 2008 11:17 AM:Three and four thousand square feet homes-what do they have 10 children? A big home for two people? Greed at it,s best. You can only sleep in one bed, sit in one chair and eat at one table and if you do not have ten children 1300 square feet is about all you need.
MJ wrote on Mar 29, 2008 11:51 AM:Ms. St. Pierre, what is "unfair" is the total lack of even marginally affordable housing for those of us who are every bit as intelligent as you, every bit as well educated and every bit as hard working ... we just did not win the housing lottery, or those of us who chose to spend a career serving or protecting others and not "accumulating wealth". A house is a home, not a speculative investment --- go to the futures market for that (oops! I forgot, that is crashing too!).
REam wrote on Mar 29, 2008 11:58 AM:Stop building and just leave it for the time being. Make a nice big park out of it and let the whole community use it.
That is the best plan. When the market recover then they can build the original MCMANSIONs again.
Cal wrote on Mar 29, 2008 12:34 PM:My wife and I sold our big house to a big family and moved onto 3 acres. We built a smaller house and lived in a trailer for 12 months during construction. The trailer was more fun than I ever expected. Everything was at my finger tips and clean-up took about an hour. It made me realize how little you need to be really happy - and how your possessions tend to own you. Less is more. In a society built on debt, growth and bottomless pit consumerism this seems heretical, but it's the way of the future.
JP wrote on Mar 29, 2008 2:16 PM:"she estimated it would now be worth about $1 million, if the market recovered to where it was before the downturn."
How long will it be before these idiots realize they've been had?
The best you can do is sell your house quickly before the market drops so far that your neighbors start walking out on their mortgages.
Joe wrote on Mar 29, 2008 3:22 PM:"(ours) would probably go down into the $700,000s or $800,000s"
Your home has decreased 20% in value. You are a fool to pay as much.
Barrett wrote on Mar 29, 2008 4:34 PM:That sound we hear is the worlds smallest violin playing a sad song as a bunch of people with no business living in overpriced stucco box mcmansions are being forced to face reality.
These people unwisely contributed to the current mess, and I hope they take the brunt of it.
jeff wrote on Mar 29, 2008 5:19 PM:3,000 sq ft? Try a trailer if your single. Mine is 600 sq ft, paid 15k, My space rent, electricity, gas, water and garbage totaled $550 last month. I run a nice 45" Plasma with High-Def everything and a high-speed internet connection.
I like my neighbors(we all talk and watch out for each other)and the sense of community not easily found in a new KB Home hood. And most importantly I have piece of mind, no debt, no property taxes, no yardwork etc.
I cruise around in a $3,300 1994 Crown Vic LX with 60k miles and 18/25mi gal. room for 6 golf bags in the trunk and no car payments, sweet.
My total monthly payments for everything including health insurance, food and extra spending money is less than 2,300 a month TOTAL!
I work 3 day's a week, golf at a fine Country club 3 day's a week and eat like a friggin King and have all kinds of nice toys I don't need to boot.
I bought stock option put contracts on Home Builders and Mortgage lenders in mid 2007 and have enough money to buy 10 McMansions but I'm keeping things the way they are.
I choose No debt, part time work, maximum free time(freedom), maximum quality time stress free.
Bill wrote on Mar 29, 2008 7:02 PM:These people make me sick.
First of all the term “investment” is used here. So this guy is whining that he “invested” something (probably not much–mostly leveraged), and oops! after he made the investment conditions changed and caused it to be worth less.
This happens to me every month when some of the stocks I hold lose value. And I’ve never complained to a newspaper reporter that, for example, my PG&E stock dropped 20% in 2008.
What do these people want? If they want to be big-boy investors, they need to be prepared to lose.
Bill wrote on Mar 29, 2008 7:08 PM:“We’ve all put a lot of money into our brand new homes —- for most everyone here, the investment is over a million dollars”
Translation: We bought the house for $650,000 (putting $30,000) down, and we are making neg-am payments, but the builder threw in $30,000 worth of upgrades and we painted the dining room mocha tan, so the house should be worth $1 million now.
Bill wrote on Mar 29, 2008 7:15 PM:‘The homes they’re proposing to put in, they’re all just boxes. They don’t have anything to offer as far as character or design.’”
As opposed to the grotesque, shoddily-constructed faux-everything Garage Mahals that they overpaid for by several hundred thousand dollars, that has all the charm and character of one of Saddam Hussein’s palaces.
Bill wrote on Mar 29, 2008 7:22 PM:“is not right, it’s not fair. (the decision for KB to build smaller homes)”
No, I’ll tell you what’s not right or fair — people like you driving up the price of houses with your option ARM loans, making it unaffordable for guys like me. But you don’t hear me crying about it.
Dawna wrote on Mar 29, 2008 7:46 PM:Whine, whine, whine...so you bought a house, just like most of us did when the market was at top value. Big or small, it's a home. You choose to make of it what you want and in the end if all you wanted was an investment, than all I have to say to you is this...what goes up, must come down and we all knew eventually that is what the housing market would do. May be by putting smaller houses on bigger lots, KB Home is trying to restore what Fallbrook is about, small community in a rural area.
Raoul wrote on Mar 29, 2008 8:35 PM:Poor Fallbrook. There really is no hope for the brookians - unincorporated, rural, small town politics, etc. And poor Ms. Dennison has no idea what's about to hit her. Then again most American's have only the slightest inkling of what the near future holds. But people are beginning to realize what's happening. Kind of like that skin sensitivity and malaise that precludes the type of flu that can kill you... Good luck to all, especially Ms. Dennison
To Jeff wrote on Mar 29, 2008 9:53 PM:You are a wise soul and will undoubtedly live a very long and happy life sir, unlike the uber-leveraged McMansion type A wannabe's who will probably stroke out or have a massive heart attack during one of their carefully scheduled workouts in their immaculate home gym, while texting on their smartphone - that or during the Trustee's hearing in their bankruptcy!
Dave_O wrote on Mar 29, 2008 11:24 PM:"she estimated it would now be worth about $1 million, if the market recovered to where it was before the downturn."
When will people learn that the peak prices we had in 2005-2007 were an anomaly, not the norm? Right now, the prices are "recovering" to their historic norms, meaning falling prices. Having prices shoot up again without sound fundamental reasons is not "recovery", it is "insanity"!
To Hooverville wrote on Mar 30, 2008 12:00 PM:We have a 4 person family and run 3 businesses out of our home. We'd never make in 1300 ... we barely fit in the 2000 we have now. Now I'm not saying that every needs a 4000sf home, but your suggestion that 1300 should be enough for anything less than a baseball team sized family is laughable at best. One size doesn't fit all.
Jay Jay wrote on Mar 31, 2008 11:05 AM:I grew up in a 1400sqf house with 2 other siblings and it never seemed small in any way shape or form to me. Now I rent an obscenenly large house for a little more than the competeing apartments. We waste space. Each cat has its own room (which they never seem to use), there is the box room, the room with nothing but a lamp in it, his and hers offices...
In the future we will look back on the credit surge of the early 21st century that preceded america's 2nd great depression as the pinacle of consumerism and excess. The houses of this era will be know for their unprecedented size, lack of quality construction, and distance from jobs.
I like what one guy said "Garage Mahal". They do look a little like mini Sadam palaces. Whats with all the faux Italian decore anyway?
chickenlittle wrote on Mar 31, 2008 10:49 PM:All these comments are not only giving me a good laugh for the day, but making me realize that maybe I should just stay put. About five years after we bought, the market surged, we stayed, it went down again. Some people bought during the surge, walked away from their mortgage later. And then the most recent surge again. This can't hurt us since we live like Jeff. We think about moving to a bigger place, but with the kids gone it's starting to feel a lot bigger. Plus it's almost paid for, and we haven't touched the equity since purchase in 1986.
My suggestion..hang on to the house long enough, it will be worth something.
She has a HOA, those new houses don't sounds that much smaller. She shouldn't have bought during the surge.
- ESCONDIDO: Man shot dead at Fourth of July party (9444)
- TEMECULA: Protesters line intersection (5796)
- ESCONDIDO: 3 DUI arrests, 46 impounds at checkpoint (4653)
- ESCONDIDO: City's dreams of an 'upscale' downtown may be dying (4372)
- ESCONDIDO: Victim's roommate recalls July 4 shooting, friends gather for vigil (4050)
Advertisement
Videos
Advertisement