Did you happen to see the headline in the Daily Herald Homes section, July 12th? It read: Home Building in Southwest Florida is on the mend.
Yes, you read that right! According to a report from the Manatee County Building Department in last Sunday’s Herald Tribune, new home permits from 6/15/09 – 6/14/10 were up from a year earlier (6/15/08 – 6/14/09). And we’re not talking up just a little.
For example, the number of permits for Neal Communities and Medallion Homes have soared. And the median home price has remained fairly consistent – in a few cases, these figures are higher now than a year ago.
We spoke to two members of the 2010 Parade of Homes Home Builders Association Manatee-Sarasota Counties. And what we heard is not only consistent with these figures, it’s very positive.
Leisa Weintraub of Neal Communities is not only seeing a “lot of pent up demand”, they’re seeing “tremendous interest”. With interest rates and home prices at an all time low, this is the “best time to buy in a generation”.
They are seeing a lot of 1st time homebuyers as well as Boomers with active lifestyles. In fact, Neal is opening an exciting new community at Lakewood Ranch within the next week. More on that after the grand opening….for now, suffice it to say that the amenities are outstanding. And it’s a green-certified community.
John Cannon of John Cannon Homes says they are “definitely selling”. But the sales are somewhat different than they were during the Boom years. The sales process is longer, and buyers are being more careful than they were a few years ago. They still want custom luxury homes but are spending much less freely. This is fine with Cannon where they specialize in putting together detailed packages to ensure that each buyer gets what he wants.
Who’s buying John Cannon homes? “We’re seeing the same buyer as before,” according to Cannon. “Successful active baby boomers. Most are relocating and retiring to their dream home. The difference is that dream home is now 3000 sq ft rather than 5000. The custom features and quality materials are still there. The space is simply smaller.”
How are builders able to do this? How do you build quality homes and still stay in business? Not easy. Margins are slimmer. Subcontractors are asked to hold down costs and work with the builder. Everyone bands together in this “new reality”.
For the new homebuyer, it’s a great time to buy. For the builder, it’s meeting the challenge of delivering the best product they can – the most value – at price points that buyers can afford.
In the end, it’s a win-win for all as we continue to build quality homes that allow new owners to enjoy our outstanding Gulf Coast living.
