Housing Development Breaks Ground Despite Economy
Several city council members joined developer Nexus Corporation in a groundbreaking ceremony Thursday morning to toast a crop of new homes to be built at the corner of Alejo Rd. and Avenida Caballeros.
“The Morrison” will feature 53 single family homes, each containing three bedrooms, three bathrooms with approximately 2,100 square feet.
The homes which city officials and Nexus describe as “affordable” will begin selling between $475,000-$550,000.
“It’s more affordable than when we first started the project,” said Cory Alder, Nexus president. “When we first started the project, we were looking at [selling the homes between] $850,000-$1,000,000.”
Councilman Rick Hutcheson said he, too, was concerned about the half-million dollar price tag, but concluded it was a good deal after talking with several local real estate agents.
“Proximity to the heart of downtown is just a crucial factor,” Hutcheson said. “That’s the magic.”
News Channel 3 surveyed the neighborhood to determine how much nearby homes were listed.
A four-bedroom, four-bath home located at the corner of Caballeros and Valmonte — two blocks away from The Morrison — was listed at $789,000.
Another available property with four bedrooms and four bathrooms was listed at $625,000. The home was located around the corner from The Morrison.
But, one local real estate agent said the city needs to focus on selling the current inventory of homes for sale.
“Right now, there are so many short sales and foreclosures,” said Michael Paduano, of Windermere Realty. “It’s a great time to buy, a great time to invest.”
According to the Multiple Listing Services (MLS), 377 single family homes in Palm Springs are on sale. Of those 377 homes, 20 properties have three bedrooms, three bathrooms and nearly the same square footage as the homes in The Morrison.
The median price of those 20 homes was $667,000.
Construction on Phase One begins in October. The project will create 200 new jobs.
Only time will tell if the homes they build will attract the buyers.
“We’ve talked to lots of people over the last two years before restarting,” said Alder. “We feel very good.”
