Let’s be honest, new home constructions have been very quiet for the last few years and for good reason. The nation’s home builders never stopped building homes, yet some severely cut back production. For a long time, the argument had been with too much inventory on the market that a consumer could buy at deeply discounted prices why build or buy new? Those clearly were the more expensive options.
Today, with little or no inventory on the market in Denver, people once again are looking at home building as an option. I have spoken with many clients over the last few months that have said, “I have looked at everything on the market and there are no existing homes that I am interested in buying. Maybe we should look at land to build the home that we want.” In fact, speaking with my real estate brethren, everyone seems to be reporting a spike in their land sales. My team, The Colorado Dream House Team, has seen the activity and offers almost double on our land deals.
I think that consumers are once again feeling that raw land is a good deal, and they would be right. Land has far lagged behind residential homes in terms of recovery. What that means is that there are many fantastic pieces of property for sale at rock bottom prices. Once the real estate recovery trickles down to land and prices start rising, consumers would have missed their opportunity.
Some examples are the custom home sites I have listed in Franktown, CO just south of Parker. These three and four-acre wooded/picturesque home sites once sold in the mid $400,000 price range. Today, they are selling from $100K to $135K. Better yet, there is no time limit on when you have to build. Its deals like these, combined with an improving economy that gets consumers excited about land again.
When I spoke with my friends over at Oakwood Homes, they continue to tell me that they cannot build them fast enough. I drove through Back Country and saw Shea Homes building and selling just as fast. These are all solid signs of a recovering real estate market. It’s one of the reasons why MSN called Denver the #1 Real Estate Market this past spring.
It’s now June and we are still not seeing the massive influx of re-sale homes coming on the market that we would have expected for the spring /summer. So if you are not finding what you want in the existing home market, maybe it’s time to look at land and speak with a builder?
Dan Polimino is an Owner/Broker with Keller Williams Realty DTC. He can be reached at firstname.lastname@example.org