By Amy Hayslett – Verrado Realty
2014 has seen many changes for Verrado, including the opening of seven new home neighborhoods in the Heritage District with prices from the low $200,000s to the low $400,000s. Meanwhile new homes in the Main Street District are close to being closed out with just a few homes left to sell. Toll Brothers, Meritage- Sage Hill, and Frank Development are all near sell out. Lennar should be soon to follow, with only a limited number of home sites in the Main Street area. Let’s take a look at the first half of 2014 as compared to the same time frame a year ago to gain some perspective on the Verrado market.
Resale pricing in Verrado continues to improve. The average price per square foot sold increased from $104 in the first half of 2013 to $114 for the first half of 2014, The median price has also improved, moving up from $238,500 to $269,000 a 12.8% increase during the same time frame. Much of the market improvement can be found at the entry level where pricing continues to rise and inventories are down.
Looking at the $200,000 entry level pricing, it is getting extremely difficult to find a home in Verrado. In the first half of last year 30 resale homes sold at or below the $200,000 mark. While this year only 9 sold for under $200,000 during the first half. Currently as of this writing there are only 4 homes listed under $200,000. Lower builder inventory and rising new home pricing have helped to push the resale entry level market up. In 2013 a home owner looking for a new Verrado home for $200,000 or under could choose from Khovnanian, Ashton Woods and Richmond American. As recently as a few months ago you could purchase a Khovnanian new home for under $200,000. Now that these builders have sold out, the starting price for a new home in Verrado is currently $205,000. Many of these homes are closing with upgrades in the $230,000 to $240,000 range.
So what does this mean for Buyers and Sellers? Prices are improving so there should still be some urgency for buyers, especially at the entry level pricing. While buyers will have many choices from the new builders, the increase in builder pricing will help sellers to continue to be competitive.