Have you been invited to many grand openings lately to have a little food and see a new model in a new area? It seems some builders have found it’s time to come out of hiding and move forward because a New Year is upon us.
“I believe there are two reasons for this,” said Linda Hutchins of LMH Realty. “First, builders have depleted much of their former inventory from when sales slowed and now they are in a position to buy lots again in new communities. “Secondly, there are great opportunities for builders to buy lots at reduced prices in new communities. This is an opportunity for both new building companies and existing ones, both large and small.”
The market is changing. There is a new excitement in the air as people feel the worst is over.
“I think that there are a number of new communities or new phases of existing communities launches coming up due to the apparent bottoming-out of the Northeast Florida new home market,” said Stephen Power, project manager for RiverTown. “St. Johns County, in particular, has been very strong this year, with an expected 1,100 new home starts. Builders and developers have sold most of their inventory over the last few years and are now bringing online new homesites and houses.”
Karen Palmer of Deltona Realty said that builders are coming out with new product to meet the demands of the market and new developers are taking over projects that have halted for various reasons, causing an increase of grand openings.
“People are still relocating to Jacksonville even during the holiday season, therefore it is more important to keep your community in the minds of the Realtor community when most people are thinking of the holiday season and family,” said Kathie Lee Menninger of Andy Reynolds Homes. “Andy Reynolds Homes was not in a community last year. But, we have seen an increase in traffic to the community in the last two months.”
RiverTown is repositioning itself in the market and recently had a Realtor luncheon with over 80 in attendance.
“There was a real excitement in the air as our builders showed off their new models and we gave the group a sneak peek of our new 58-acre Riverfront Park,” said Power. “We have a grand opening scheduled for May 2012, when we will open up our brand new amenity center. Many fun and family-friendly activities are planned for the grand opening.”
Does the time of year have anything to do with the amount of grand openings?
“Buyers who purchase before the end of the year receive this year’s tax benefit for the cost of the loan along with being eligible for Homestead Exemption filing for next year,” said Hutchins.
Since Florida is known for its weather, another thought is that builders are positioning themselves to take advantage of the buyers coming from colder climate areas.
“I think everyone is getting into place for the ‘Snowbirds’ and the market is always active in springtime,” said Palmer.
Is it more traffic or a new year is coming, so there is a new lease on life in the real estate communities?
“We saw an uptick in traffic during the month of December along with sales contracts,” said Hutchins. “We are optimistic that this will carry over to 2012.”
Holding a grand opening is a great way to show that you are ready to welcome Realtors and prospective buyers to see your new product.
“I think everyone is trying to be optimistic and planning on more traffic in the New Year,” said Palmer.
Brian Martin of Standard Pacific Homes said he thinks the amount of grand openings is an attempt to make a huge splash with both Realtors and prospects.
“With luck, it will draw a great crowd and keep the buzz alive for a couple of months,” said Martin. “Typically, to do so would require a ton of follow up to the event. Many feel that this time of year is one that is slower and more money for events is necessary to get people to walk in the doors. The most amount of cash outlay is typically in November through February.”