David Mandarich-Now is a better time, the best time to buy a house!!!!
David Mandarich, President & COO of Richmond American Homes jolted everyone out of their seats as he shouted, “Now is a better time, the best time to buy a house!!!! Let’s get excited! I’m so glad that I live in Denver, so proud to be part of this community.”
“What we experienced in 2005 & 2006 from local builders is a lot of overbuilding. We saw an interesting phenomenon during this time and had a lot of speculators. We saw a lot of people who came to Las Vegas and areas like that to speculate. People were no longer viewing a home as a place to live but rather looked at it as an opportunity.”
David Mandarich exclaims, "Now is the best time to buy a home!"
David continued, “Here we all are in 2008 and we are in a hangover from the party of buying and speculating in 2004 and 2005. We are living through that foreclosure process. You have a lot foreclosures in Las Vegas, Pheonix, and in a lot of markets. Why did this happen? Real estate values went down. In California, if you bought a home in some areas of California in 2005, the average home was priced around $550-$600K. Today that house is worth $350,000. You don’t have motivation to stay in that house anymore.”
Ryan Neville, Kentwood City Properties applauds David's opening remarks
David stated, “We are in Denver and glad to be here. I was talking to John Fitzpatrick. Denver was feeling really good a couple of months ago. Denver has a great story, different than most cities in America. Resales are down year after year. We are selling new homes and WWII levels. Why is this happening now? Other markets like California and Arizona feed into Denver.”
David proceeded, “Now local builders are feeling the affects. Beazer and Centex have left the local market. Other national homebuilders are not investing in any new markets. Some are selling inventory below cost.”
Mandarich furthermore questioned, “What trends are we seeing in new houses? We are seeing across the country, people today are looking at a house more as a home vs an investment. Today, people are really looking at a house to buy as a home. Today the average square footage is really smaller across the country than it is in Denver. Today the average sales price for Denver is in the $300’s. Other places, is around $200-$240K. That’s one of the challenges that we have in Denver. We are coming out with a product with a single family detached product in the $200’s. In Denver, that is being replaced with an attached product vs detached.”
“Negative press has really hurt our consumers,” he stated. “Once that disappears, we’ll have a healthy market in Denver. There will be a void to fill because the other builders that left town. The real challenge in housing is that most of the banks don’t want to lend money to home builders. A lot of the big national banks have a moratorium and do not make loans to home builders . The banks have seen a lot of credit defaults where they have had to take properties back. For some you smaller home builders, you know it is very hard in the Denver market even to get a construction loan. Banks are really concerned about lending to a home builders. ”
“What does all of this mean for consumers,” he shouted. “Now has never been a better time to buy a new home in Denver!”
Click below to download a copy of David’s power point presentation
