SF Bay Area - Fremont - Warm Springs - Condos Toll Bros Lennar

2 Replies

Hi Guys,

Quick thoughts. Lennar, Toll Brothers, and others are building a ton of homes near the Warm Springs BART in Fremont, CA. They have plans to build like 3000 condos (there are others that are going build like 200-300 condos).  Since these are large dense development, they are going to release a bunch of inventory at once, this Spring. What worse they are priced between $1M to $1.7M.  Does anyone feel like this is going to crash the market, especially if there is a slowdown and they don't sell like hot cakes?

Hi Albert,

The warm springs project is a very large development.  There is a big demand and need for housing in the South Bay.  Fremont Warm Springs has become a hub for South Bay and SF.  The price is high but if you compare the cost to own in the area it's not that far off.  There are 1980s condos selling in the area in the $800s.  

New developments are released in phases. So if a project is not selling builders will slow down production and adjust the price.  If there is a drop in prices it won't because of the development it will be more on external factors.

For those who want to lease it out must know the rental market will be impacted appreciably. The ones at SJ Berrysessa old Flea Market has caused an abundant of housing where landlords often have offer free 1st month to get the interest of renters. The question is what one can rent for these 1-1.7M vs mortgage.