Northland Foreclosures

[drramos101]

I've never seen so many new homes bought one month and up for sale or foreclosed a month or two later. I live in Staley Farms which has homes ranging from the 350's to 2mil+ and I've been seeing homes pop up for sale, almost every week, it seems. A home that sold a year ago for 700k is back on the market for 600k, it's insane, now there's homes being sold in the 240's. Staley Hills, a new development down the road with homes ranging in the 300's-450's is less than a year old and already tons of houses are back on the market. It's starting to really effect the value of my home, it sucks. Still, there are new neighborhoods scattering everywhere only to stay empty. It's everywhere, Johnson County and Lee's Summit is having the highest foreclosure rate, but I think the Northland is getting there. I've seen homes that haven't even been lived in and have been for sale for 2 years. Anyone else seeing this a lot in your neighborhoods?

[Steve52]

I've seen homes that haven't even been lived in and have been for sale for 2 years. Anyone else seeing this a lot in your neighborhoods?

Yes indeed.

Not a pretty picture.

[Sportster]

Thank God I live in Historic Northeast. It must be absolutely frightful out there in the burbs!
Wow! And I thought I lived in a "bad" neighborhood.

(sorry - just don't have a lot of sympathy for the "put the Hummer and the VISA on the mortgage" crowd.)

This is the same crowd that's waiting at the mail box for the economic stimulis check too! Everyone's gotta have a bail-out!

Sportster
...personal responsibility begins when???

[nota]

Staley Farms is hilarious to begin with. There are a couple of houses there that are EXACTLY my same house - the only diff was the extra $200k plus. A similar lot, etc. Not on the golf course. In fact, my house, built in 1998 has a much nicer finish-better trim work, nicer floors, bigger garage, bigger laundry room,  bigger kitchen. Square footage was the same, floor plan was the same, outside was the same, but the extra space in the rooms was taken out of rooms that didn't need to be quite so large.

A developer's dream for sure. An extra $200k just for the address.

[FangKC]

How much sq. footage was in that house?

[aknowledgeableperson]

Staley Farms is hilarious to begin with. There are a couple of houses there that are EXACTLY my same house - the only diff was the extra $200k plus. A similar lot, etc. Not on the golf course. In fact, my house, built in 1998 has a much nicer finish-better trim work, nicer floors, bigger garage, bigger laundry room,  bigger kitchen. Square footage was the same, floor plan was the same, outside was the same, but the extra space in the rooms was taken out of rooms that didn't need to be quite so large.

A developer's dream for sure. An extra $200k just for the address.

A few years ago my wife and I went around the city on the Parade of Homes.  There was one floor plan my wife liked, me not so much.  That one floor plan was in at least 5 developments and all by different builders.  The price difference between the lowest price and the highest price was over $100K.  Some of the price differences was with the lot cost, other factors were plumbing and electical finishes, cabinets, countertops, and flooring.

[ShowME]

A buddy of mine just bought a repo house in Lee's Summit just west of Raintree Lake.  It's a two year old house and never has been lived in.  It was listed on Reece and Nichols for 385k and he got it for 250k.  Supposedly there's another house a block over and he thinks you can get it for 240k.  Funny thing is I went by there yesterday and noticed someone had stolen the damn AC unit.  Told him about it and he was headed over there to see if someone broke into the house and stole the copper as well.  Luckily he hasn't closed on it yet.

[dangerboy]

It's happening all over American suburbs, not just the Northland.  Many developers are going bankrupt and abandoning new subdivisions, leaving people living in new houses surrounded by abandoned half-finished houses.

It's really bad in Joco right now.  A realtor I know there is commuting to Lee's Summit because she says that the only place people are buying houses.

[drramos101]

I think there's a lot of people buying houses in other areas too. A new addition by me with homes in the 700's is going up and you just look down the streets and all you see is reserved reserved reserved. The Northland still is experiencing the most growth in the metro, and rapidly fast, but it's just a lot of these homes aren't going to be lived in for long. There's going to be more empty houses than houses being lived in everywhere.

[nota]

A few years ago my wife and I went around the city on the Parade of Homes.  There was one floor plan my wife liked, me not so much.  That one floor plan was in at least 5 developments and all by different builders.  The price difference between the lowest price and the highest price was over $100K.  Some of the price differences was with the lot cost, other factors were plumbing and electical finishes, cabinets, countertops, and flooring.

As I said, the finish in my house was much nicer. As builders have progressed, they have cut corners more and more. Like, who would build an entertainment center with a hole for a big TV, but putting the cable outlet was "an extra option". The crown molding in my house was much wider and more ornate and in every downstairs room. The big buck house only had crown (narrower and smaller) in the living room and dining room. The fluted columns in my house are a full 12" wide, the ones in the big buck house were only 10". All of my white trim was painted with oil base paint. Latex paint was used in the big buck house. Both houses had formica countertops (upscale, but still formica) - the corian/granite/etc hadn't caught on yet for either of them.

Door and cabinet hardware was the same as was the bath hardware. But my house had the nice elongated bowl toilets and the big buck house had the cheapo builder's grade round ones.

Yes, the lot probably cost more however it wasn't a golf course lot or a lake front lot-just a run of the mill streetside lot just like mine.

[nota]

all you see is reserved reserved reserved.

Normally, "reserved" means a builder has reserved a lot for speculation. When it says "sold" - then it is actually sold. That's how builders lock up the primo lots for their building and the ordinary buyer doesn't even get a chance at those.

[jlbomega]

As I said, the finish in my house was much nicer. As builders have progressed, they have cut corners more and more.

This is consistent with America in general.  Construction, manufactuing, etc... every facet of our economy over the past 15 years has charged more for lower quality.  "Made in the USA" used to mean quality, not anymore.  Germany has been able to maintain a very strong export/manufacturing economy by building quality, the US fell behind not because of "high costs" but because they refused to continue building a product that was worthy of that cost. 

Quite frankly all of these real estate speculators who have driven up this bubble (from the real estate agents, to the developers, to the idiot consumers who took these absurd loans) deserve to lose their shirt from their utter stupidity.  I for one will wait around before buying because this housing debacle isn't even close to hitting bottom.

[drramos101]

Yeah, but in Staley, when a sign says reserved it means the lot is reserved by a home buyer not the builder because they have signs also that say Model with the builders name below it At least that's how it was for us when we built ours. They put a reserved sign on our lot and once our house was finished and moved in, they put a sold and owner occupied sign in front.

[justin8216]

New article in the star today. They talk about all the Loch Lloyd foreclosures. Now is the time to buy if you have the money. Houses that cost a million to build are being sold at half off clearance discount. A million dollar home complete with indoor basketball court for $ 500k. That is a steal.

I'm glad to see the mortgage melt down hit the upper class finally. They deserve their share.

They mentioned one house on Myer Circle, which I believe is the Ward parkway district. It was rehabbed by a Calafornia developer. It sat vacant for sale for 890k for three years. Then someone bought it for a million, never moved in and now another year later it is for sale for 850K. Crazy.

Anyways if all you can afford is a 500k house but you always wanted a million plus dollar house, now is the time to buy. You don't find deals like this everyday.

[justin8216]

I think there's a lot of people buying houses in other areas too. A new addition by me with homes in the 700's is going up and you just look down the streets and all you see is reserved reserved reserved. The Northland still is experiencing the most growth in the metro, and rapidly fast, but it's just a lot of these homes aren't going to be lived in for long. There's going to be more empty houses than houses being lived in everywhere.

Values are just going to have to come down dramatically. We need to get back to reality. Houses should not be investments that you try to cash out every two years at a profit. They should be a place to live. We have warped way of thinking of housing and now we a paying the price.

We need a correction in homes prices. It will hurt but in the long run it is the best thing that can happen. Housing costs just aren't in touch with wages anymore.

500k houses need to come down to 300k, 300k homes need to come down to under 200k, 200k homes need to come in under and houses that are 150k? How bout 75 to 80k. That sounds more like, and I think we are well on our way there.

[nota]

Yeah, but in Staley, when a sign says reserved it means the lot is reserved by a home buyer not the builder because they have signs also that say Model with the builders name below it At least that's how it was for us when we built ours. They put a reserved sign on our lot and once our house was finished and moved in, they put a sold and owner occupied sign in front.

How did you choose the builder for your lot?

[jlbomega]

500k houses need to come down to 300k, 300k homes need to come down to under 200k, 200k homes need to come in under and houses that are 150k? How bout 75 to 80k. That sounds more like, and I think we are well on our way there.

Obviously it depends upon the area.  Of course homes on the edge of the city will be the hardest hit.  I don't think homes under $150k will be hit too hard.  However homes over that level will see values drop and become stagnat for the next several years.

[4everNorthlander]

Thank God I live in Historic Northeast. It must be absolutely frightful out there in the burbs!
Wow! And I thought I lived in a "bad" neighborhood.

(sorry - just don't have a lot of sympathy for the "put the Hummer and the VISA on the mortgage" crowd.)

This is the same crowd that's waiting at the mail box for the economic stimulis check too! Everyone's gotta have a bail-out!

Sportster
...personal responsibility begins when???

Gee, aren't we being stereotypical of everyone up North!  How would it feel to hear "Over in the NE area how many Sec 8, hud houses, etc are there?  I'm sure there are some "Baby Mommas" waiting on their check too, only they get it every month plus food stamps."

For the most part we are hard working and pay our taxes. It's hard being middle class nowadays.  Too rich for govt. help, but not wealthy enough to make ends meets easily.

[FangKC]

Over a billion people on this planet live on less than $1 a day.  Get a grip.

[nota]

Over a billion people on this planet live on less than $1 a day.  Get a grip.

Makes all those $4 coffee drinks look a bit different, huh?