CA santa maria times

Saanta Maria Times.


It's not unusual to see one-day or one-weekend sale prices advertised on groceries, appliances, sporting goods, cars and even recreational vehicles.

But rarely do you see a sale on brand-new homes with prices marked down as much as $30,000.

Yet that's what's happening this weekend and next as Centex Homes conducts what it calls its Golden Opportunity Sale at the Gardens at Briar Creek in Lompoc.

The sale may be less a sign of the times, however, than it is of the company's desire to reduce its inventory of move-in-ready homes.

Andrea Bradford, director of marketing for Centex Homes, said the company would like to sell off some of its inventory before the end of the metric quarter determined by Wall Street.

“It's really not a secret that right now the housing market is on the slow side, although we're seeing an uptick in some of our neighborhoods,” Bradford said.

“We have a limited number of homes that are ready to move into right now, and we're willing to offer outstanding, outstanding offers on them,” she said. “... We have six homes that we're highly motivated to sell. We think we'll sell all six in two weekends.”

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Prices start around $460,000. The one- and two-story homes range from 2,167 to 2,648 square feet. Some have four bedrooms with large “bonus rooms,” up to 2 1/2 baths and two-car garages.

Features include kitchen pantries and islands, family- or great-room fireplaces and walk-in master suite closets in every home.

“These are really beautiful homes,” Bradford said. “We have a number of people living there now, and it's really a neighborhood in the old-fashioned way - the ‘play in the street, ride your bicycle' type of neighborhood.”

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Marking down prices on new homes is not a common strategy among home builders in this area, especially among smaller and custom-home builders.

And most observers don't expect to see more of it, despite sluggish home sales right now.

“Centex is a little different because of their scale,” said Jerry Bunin, government affairs director for the Home Builders Association of the Central Coast. “They're one of the major builders working in (San Luis Obispo and Santa Barbara) counties, and they're one of the top three or four builders in the country.”

Centex operates in major housing markets in 25 states and built more than 35,000 homes in its fiscal year ending March 31, according to company statistics.

But rather than build a large volume of homes like Centex, smaller builders tend to pace their construction rates based on the market, Bunin said. That's why you won't see small builders' new homes in special sales.

“What (the smaller builders) are doing is a lot of waiting,” Bunin said. “There's kind of a fine line between having an approved project and continuing to pay interest on it and the loss you're taking through that, and building units and increasing the amount of money you have out in a market that's kind of slow right now.”

For example, he said, if a builder had most of the units finished in a development, that builder would go ahead and finish out the last few units to complete the project.

“But people certainly wouldn't start a new project” given the soft market at the moment, he said.

Centex's sale also may be rooted in another factor.

“I think it may be because the company is leaving (the Central Coast) in the next couple of years,” Bunin said.

Chris Bowley, division manager for the L.A.-Central Coast Division of Centex, couldn't be reached for comment by press time. But he has said the company won't be starting any new projects between Monterey County and Santa Barbara.

“It's been kind of common knowledge for some time,” Bunin said of Centex's plan to leave the Central Coast market.

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Even if other builders aren't holding short-term sales on their new homes, some are offering other incentives, as is Centex.

“We haven't seen a whole lot (of new homes marked down) in Santa Barbara County because there's not a lot of new housing there,” Bradford said. “But we have seen some incentives offered by builders in SLO County, including by ourselves.”

For example, she said, Centex has seven homes left to sell out of the 61 in the project called 3592 Broad Street in San Luis Obispo.

To move those homes, ranging in price from $530,000 to $580,000, the company is offering special financing as well as help with closing costs through Centex's related mortgage, title and insurance services.

“That's typically what happens” when there is a standing inventory of homes, Bradford said of the incentives. “We're trying to add value.”

To make Centex homes more att- ractive to buyers, the company also offers a two-year “Fit and Finish Limited Warranty,” providing an extra year of coverage over the industry standard.

“We don't build homes so they can sit there; we build homes to sell,” Bradford said. “If we can help someone get into a home who didn't think they ever could, that's good. And, of course, it's good for us, too.”

Mike Hodgson can be reached at 739-2221 or mhodgson@santamariatimes.com.

July 29, 2007