New construction continues to gain strength and popularity in our marketplace. We are now experiencing builders going partners with land owners. This is a safer way for a small custom builder to return to new construction with minimal risk and for land owners to sell their land.
There are land owners who were previously drooling just thinking about the income from parceling off some of their land. Once the market tanked, the chins were dabbed and the wait began for the market to rally again.
The time has come and small builders are eagerly searching for the right parcel of land in the right location with the right number attached to a payoff as each home closes. Land owners and small builders will have to work together and be realistic about the numbers.
This is what the past several years have accomplished for resale homeowners. Previously, when the market tanked, homeowners attached high prices in disbelief of the actual market. They became realistic with their prices and homes are selling now. Resale homeowners are reasonable and buyers are paying the price.
Small builders and land owners will be going through the same process. If the numbers work, the builder will go forth. There is no room for additional risk today. Land owners who are now partnering understand and will make money. New construction is back, and I’m ecstatic about it.