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Saturday, April 12, 2008

Daybreak Home Sales Slump

The latest home sale stats for Daybreak indicate that the community has more than a year's worth of inventory. In fact, according to the Wasatch Front MLS and Corie Seymour, there are 49 houses currently on the market in Daybreak. That number does not even include new construction in Eastlake or the condos in Founders. While 34 homes were closed (sold) in the first three months of this year, these sales could represent deals made as far back as 6 months. A better indicator is the number of homes put under contract since the beginning of the year. This number is a dismal 12 homes. Can you say buyer's market?

On the new home construction front, Daybreak homebuilders are trying to weather the storm offering incentives that have been promoted by the Smart Buy program. Considering the current state of the market some home builders seem to be doing well, while others have had contracts canceled and are looking to unload inventory quickly. People buying right now definitely have negotiating power with the homebuilders.

I for one sincerely hope that the home builders will be able to sell more homes in the coming months. I imagine that Kennecott Land needs to sell more plots to the homebuilders to maintain cash flow for the company. However, as altruistic as Rio Tinto (owner of Kennecott Land) may seem, they need to be able to produce a profit. I think they will in the long term if they stick with their current plan. However, if for some reason a decision maker decides to take a short-term perspective on things, then the plan that is Daybreak will likely not be realized.

Rio Tinto could have easily sold off Kennecott owned land in chunks to cookie-cutter developers and industrial companies, but Rio Tinto has a sustainability philosophy that pushed the idea of Daybreak forward. In the news today you might have seen that Suncrest, a developer in Draper, filed for chapter 11 bankruptcy. In this case homeowners like that the development will be sold to another developer. Their community has already realized its purpose. The Daybreak community, on the other hand, is the spark of development that will light the entire West side of Salt Lake County with sustainable development. In my opinion Utah needs sustainable development. All we can do is wait and see...

4 comments:

Dave said...

Thanks for all of the great posts, I am looking to buy out in Daybreak and feel that eventhough you live there, you are giving good objective information. It's the best blog on Daybreak out there, keep up the good work, I really appreciate it!

Anonymous said...

Hi,
You're sales numbers are a little off. I can't remember what January was, but February was 31 sales, and March was 37 That's net, gross was much higher. That's pretty strong given the current state of the market.

Anonymous said...

Hi,

Your sales numbers are a little off. There were actually 31 Sales in February and 37 in March. That's Net sales, gross sales were much higher--This is pretty strong given the current status of the market, and pretty high compared to most other places in the valley.

scoop said...

Hey Mr. Daybreak Man....who might you be?

scoop

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