How Foreclosures (REO’s) Affect New Homes Sales & Construction

First in a four-part series.

Brian Medeiros, Livingston & Oakwood Shores Manteca call at (209) 606-3507

While new home construction has slowed to a trickle, new home real estate sales have been flowing strong for Brian Medeiros.

Brian Medeiros, 37, realtor for 12 years with Century 21 M&M and Associates in Livingston, CA., specializes in selling new homes at orphaned subdivisions.

“I’ve done 11 of these,” Brian said about subdivisions he’s sold out.  “I’ve sold almost 300 new homes in the last 3-1/2 years.”

At the peak of the recession, he noticed once bustling subdivisions were stalled in selling their final finished homes.  Medeiros had a plan to move the unsold product.

Typically working with the developer and banks, Brian is able to remarket and offer the unsold homes for an attractive price.  Medeiros is selling against foreclosed, bank-owned and short-sale homes, all which can be in less than pristine condition and needing work.

“I’m selling the best stuff at the best price,” said Brian Medeiros. “You’re getting a turnkey home, ready to move in.”

Oakwood Lake

Brian’s latest project is Oakwood Shores, a 360-acre development in Manteca.  The gated community, on the former site of the Manteca Waterslides at Oakwood Lake, was foreclosed in summer 2008.

Tricon Capital Bank of Canada reopened Oakwood Shores in late January with Medeiros handling sales.  The inventory includes 25 completed homes, 12 models and 427 lots.  Highlights include a 4,000-square-foot clubhouse, lakeside living, boat dock for water sports, two private lakes and 170-acres of water.

“It’s exciting,” said Medeiros.  “We’ve already sold three homes in two weekends.”

Oakwood Lake home

The finished homes, most displacing more than 3,000-square feet, range in price from $300,000 to $600,000.  The $600,000 furnished model originally was priced at $1.2 million.

“You’ll never see these homes at these prices again,” Brian said.  “You can’t build these homes for that price.”

Brian is hoping to sell all of the finished homes at Oakwood Shores within a year and then move to the next phase.

“We’re looking at building.  That’s our long-term goal,” Medeiros said.  “Our hope is to have hammer on nail in spring 2011, or it could be fall 2012.  Right now is our study period.  In about six months we’ll evaluate it.”

NEXT FRIDAY: Has new home construction hit bottom?

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