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J Stephens

Beach Comber
Aug 18, 2012
12
1
30a
www.30-a-real-estate.com
How much new construction has there been in Seacrest Beach this year and how does it compare to sales of existing houses???
I've heard this question a lot this year so this is just a little market update to help with the answer.

This market update analyzes the recent costs of new home construction in the Seacrest Beach community compared to resale prices in the development. This analysis takes into account the significant variations in lot values when comparing back lots, front lots, and lots in premium locations.

For purposes of this market analysis, the average size of a home in Seacrest Beach is determined to be 2400 sq ft.

The Impact of Lot Value
Any analysis of housing construction costs in the area must begin by separating out the cost of the lot.

The market value of a lot can vary widely depending upon a variety of factors like location, size, and shape, For example, lots located near the front of the Seacrest Beach development usually sell for more than those located farther back.

During the past year, lots located toward the back of the development have sold for an average of $75,000. Factoring this cost into the overall cost of an average 2400 sq ft home means dividing the cost by 2400. The result is $31 sq ft.

Over the past year, front lots have sold for an average of $110,000. For front lots, the cost of the lot works out to $46 sq ft. There are also lots considered to be 'premium' lots because they are either located near the pool or on Highway 30A.

Over the past year, three such premium lots were sold. One sold for $148,500. Another sold for $181,000. The third, facing toward the pool, sold for $187,000. Averaging the cost of these three lots results in a figure of roughly $75 sq ft. In other words, of the per square foot cost of constructing an average 2400 sq ft home, $75 sq ft should be attributed to the cost of the lot.

Construction Costs
Since January of 2012, there have been 14 new homes constructed in Seacrest Beach. Currently, there are another 11 homes being built. The cost of new construction in the area varies significantly depending upon various selected upgrades, materials, and features. The range has been about $120 to $165 sq ft. In this analysis, we'll establish $145 sq ft as the average build-out cost for new homes in Seacrest Beach.

Costs By Lot Location
The typical cost to build new homes in various parts of Seacrest Beach can now be determined on a 'per square foot' basis:

Back Lot -- $31 sq ft for the lot plus $145 sq ft for construction equals $176 sq ft overall cost.

Front Lot -- $46 sq ft for the lot plus $145 sq ft for construction equals $191 sq ft overall cost.

Lot on 30A and lot next to the pool -- $75 sq ft for the lot plus $145 sq ft for construction equals $220 sq ft overall cost.

Resale Price Analysis
Over the past year, home have sold in the Seacrest Beach community for an average of $199 sq ft. However, the resale performance of homes built on premium lots was significantly higher. These homes often sold for 30-40 percent more than average homes sold for in the development. Homes adjacent to the pool commanded the highest premiums. One such home sold for $279 sq ft.

10 of the 14 homes built in the past year were listed in MLS. These 10 are used in this analysis. The other four were personal projects that are not included. Three homes are under contract, but final selling prices have yet to be established. Sales of two of the homes have been completed. One sold for $192 sq ft; the other sold for $205 sq ft.

The five currently active listings carry asking prices ranging from $216 to $245 sq ft.

Conclusion
The final analysis comparing construction costs and resale prices over the past year is as follows:

A house built on a back lot in Seacrest Beach cost $176 sq ft to build; resale price was $199 sq ft.

A house built on a front lot in Seacrest Beach cost $191 sq ft to build; resale price was $199 sq ft.

A house built on Highway 30A in Seacrest Beach cost $220 sq ft to build; resale price was $273 sq ft.

A house built adjacent to the pool in Seacrest Beach cost $220 sq ft to build; resale price as $279 sq ft.

With the improved balance between new home construction costs and resale prices, there is now an upward trend in new home construction compared to a year ago.
 

sadie1

Beach Lover
May 31, 2009
144
17
Are construction cost really $145 a square root to build? maybe the've risen. so if a builder carges $145 a squarefoot avg what is he netting per home. It seems he still makes 15-20% net. so if a builder sells a 500k home he's netting a 100k profit. doesn't seem much different than the old days
 

iknowkevin

Beach Comber
Aug 3, 2008
23
3
I believe GreenWaveDave was asking for current market prices, and sales activity. I am guessing this article should make him happy. :D
 
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