Even with the housing market decline, developers who were late to the game still continue to build new developments hoping to break even. Because most builders are not regional, and build in a variety of markets, one market slump can adversely affect their whole portfolio.
One prime example is in Palo Alto, Warmington Homes is starting to advertise a couple of their more common "standard" units at a $45K discount. A brand new home that 6 month ago sold for $850K+ is now being advertised for $800K. Across the street, a new development is advertising their homes for sale for as low as $700K.
Although these declines are nowhere near as much as other areas such as parts of Sacramento/ Los Angeles/ Oakland/ Antioch, the decline is still significant to be noticed.
Why is this decline important? The best news is this may be the best time to buy into Palo Alto and their great neighborhoods and school districts. It is unheard of to be able to buy into Palo Alto High or Gunn High School for $700K.
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