Prices of spec projects are being disproportionately punished by the market. Last week we submitted a $900k offer on a 10K+ square foot lot and the bank countered today at $1m. I think that is a sad but relatively accurate depiction of the trend on Coronado land prices. It just seems to me that if finished prices of Coronado homes are signficantly down, and construction prices are only slightly down, then something has to give and that something is the price of land.
There is an abundance of turn-key Coronado homes for sale, as the market is oversupplied. Moreover, most buyers are vacation buyers who want a finished product. It is thus a particularly difficult scene for those who want to sell unfinished projects, tear-down homes, and other similar Coronado home opportunities that need development.