update on OLD spec thread

[Rich Weese]

As many of you know, I'm not very good with this techie stuff. I posted a thread a LONG time ago about specific custom spec homes I was building in SO. Utah. I posted the results of all the previous ones but not the most recent one. It closed this week.

   I built EXACTLY the same floor plan in the same area for the 3rd time. Made super returns on the previous 2. Not nearly as well this time and an extremely long holding period. I felt the slow down coming and sold a lot I had bought for future spec at a great profit and sold a month ago. Purchased for 47K and sold for 73K (I think) only a few months later. Some other "fool" wants to build a spec. I didn't make any more profit on the house that just closed than on the lot-with no risk.

I also just closed on my personal residence (basically the same home) that I bought 2 years ago for 269K and sold for 340K. Again, nice profit. 

I really feel that the area all these homes are in is WAY over sold and trouble is on the rise. These homes were upper mid range in pricing. Anyone seeing the same thing?

I'm continuing to build lower price homes in my SO TX subdivision, and they are doing really well with a lot of sales of homes and lots. I think I have 4 lots and 6 homes sold this year so far. I think the price range and area is the difference.

I'm also beginning to build in the Ocala area of FL with first 2 homes approved and under const. $200,000 is price range and I expect to do well with these as long as The Villages is going crazy.

Just wanted to give my views on what I've seen first hand lately. Rich

[Justin Morgan]

Hey @Rich Weese 

Southern Utah is looking scary to me.  I've sat on two rehabs over the $300k price range for way to long this year.  Sold one and made a small profit.  The other is under contract for 10% less than my February Comps and I will be losing money on it. 

Under $200k is the place to be unless you can sell at a REALLY, REALLY good price!  The scary market is $300k-$400K right now in Southern Utah.