Are Builders Starting to Build Specs Again?

I just spent the last several days with a couple who wants to buy a new construction Scottsdale home on a tight timeline. That means they would rather buy a home that is currently under construction or just completed. They are looking for a brand new, never lived in, 4-5 bedroom custom home under $1.5 Million. Guess what? That is almost an impossibility in Scottsdale right now. There is a drastic lack of new homes on the market. The majority of new construction is production built, not custom, by builders like Toll Brothers in Windgate Ranch.

Custom builders in Scottsdale stopped building when the bubble burst. Since the downturn, it is much cheaper to buy an existing house than build a new home. There is an over-correction in Scottsdale real estate prices. The current price of homes is BELOW replacement cost.  So the builders stopped building specs because it didn’t make any financial sense.

Just another positive trend for the Scottsdale real estate market….builders are starting to prepare to build again. (Yeah!). New Village Custom Homes just purchased 13 lots in the Mirabel Golf Club and intends to build home on those lots over the next several years. The first spec home will be starting in November with an expected delivery date of late 2012. This further confirmation from the construction industry that the Scottsdale market is at or close to bottom.

Questions? Feel free to call me at (602) 791-0536. North Scottsdale real estate is my specialty and I would love to help you find your next home. Contact me to schedule a showing of any homes for sale in Scottsdale.

 

Carmen Brodeur JD
Realtor
Trillium Properties, LLC
9825 E Bell Road, Suite 120, Scottsdale AZ 85260
(602) 791-0536
Carmen@TopScottsdaleHomes.com
www.TroonRealEstate.com