With the dot-com boom turned to bust, it’s harder to sell
million-dollar homes these days.
GILROY – With the dot-com boom turned to bust, it’s harder to sell million-dollar homes these days.
That’s the theory behind a recent move from housing developer Shapell Industries, which has altered its second series of single-family homes at Gilroy’s upscale Eagle Ridge development – as well as at some of its other Bay Area developments – in response to reduced demand for higher-priced luxury homes.
“In an economy like we’ve seen the last couple of years, the buyers send you a pretty clear message about what they want and what they don’t want,” said Chris Truebridge, Shapell’s executive vice president and division manager for the Bay Area. “In some cases, Gilroy is pretty price-sensitive. Once you get over $800,000, you really struggle in the Gilroy market, which is pretty much true throughout the Bay Area.”
Eagle Ridge is located off Santa Teresa Boulevard in the west-side Hecker Pass area.
Shapell’s new 100-unit phase of homes there, called The Glens, will feature four single-family floor plans designed by Robert Hidey Architects that officials say reflect Santa Barbara, Monterey and Spanish Colonial influences. There are single-story and three- and four-bedroom options.
The homes will range from 2,645 to 3,330 square feet and be priced at $619,000 and above – a contrast from Shapell’s initial phase of single-family homes at Eagle Ridge.
That development, the sold-out 144-home “Woodlands,” featured homes from 2,760 to 3,800 square feet – with an option to go up to 4,260 square feet – and were generally priced over $900,000.
“If the economy didn’t go down and we could be selling (more) of the Woodlands, we’d be selling it,” Truebridge said. “They’re just outside the market in this economy right now.”
But how to adjust the price without sacrificing quality? Officials said one adjustment was to redesign floor plans and reduce the size of formal living spaces such as the traditional living room.
With lot sizes averaging 7,000 square feet but reduced home sizes, officials said there’s more room in the yard – and the new-found potential to add a swimming pool.
The first phase of The Glens opened for a preview on April 19 and went to lottery on April 26. Twelve of the initial 16 offerings had sold as of last week.
Eagle Ridge also features attached homes, called The Courtyards, ranging from 2,222 to 2,594 square feet and priced at $485,000 or above. 141 units are planned; eighty-two have been built and sold.
It’s not unusual for homebuilders to make adjustments to factors such as garage size, number of bedrooms and stories in response to the market, said Bill Faus, the city’s planning manager. Such alterations usually don’t go back to the city’s Planning Commission or City Council unless there’s a dramatic change, such as a shift from detached to attached housing.
