Construction at two tracts in northeast Bakersfield’s City in the Hills development has been halted by one of the builders there, K. Hovnanian Homes, a company official said.
The Rosemary Arbor and Lantana’s Edge neighborhoods are on hold, said Joseph Manisco, vice president and chief legal officer at the company’s Southern California regional office in Ontario. Manisco said the tracts weren’t profitable.
"What we're looking at is a fire sale of properties in newer affordable neighborhoods that were bought or refinanced near the price peak with lousy mortgages.
The median price paid for a Southland home was $348,000 last month, down 2.0 percent from $355,000 in June and down 31.1 percent from $505,000 for July 2007. That peak of $505,000 was reached in March, April, May and July of last year.
Orange County down 28% YOY
Riverside County down 34.8% YOY
San Bernardino County down 35.2% YOY