Real Estate Supply

[fisher]

IMHO the association fees, taxes and build out time all affect the motivation of the seller. I would guess that all 3 could be a problem in Water Color.

I believe he/she was asking about the sales in the Preserve.

Yes, all those carrying costs plus interest certainly factor into people dropping prices in order to sell. However, I don't believe that in Watercolor or Watersound that St. Joe will ever pull the trigger and start buying back lots (unless of course the market skyrockets again). It would be a PR nightmare and cost big bucks to buy the lots back. Then, they would be stuck with lots of inventory again in a market flooded with inventory. No, IMHO, next time a big chunk of lots bumps against the buildout deadline, St. Joe (and other developers for the same reasons) will give grace again. No developer is going to want to shell out the cash for a large number of lots and then be stuck with trying to sell them again.

 

[SHELLY]

St. Joe will ever pull the trigger and start buying back lots (unless of course the market skyrockets again). It would be a PR nightmare and cost big bucks to buy the lots back.

As I recall, ST JOE is now a "Place-Maker"....not a "Place-Taker."


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[hi n dry]

I believe he/she was asking about the sales in the
Preserve. Yes, all those carrying costs plus interest certainly factor into people dropping prices in order to sell. However, I don't believe that in Watercolor or Watersound that St. Joe will ever pull the trigger and start buying back lots (unless of course the market skyrockets again). It would be a PR nightmare and cost big bucks to buy the lots back. Then, they would be stuck with lots of inventory again in a market flooded with inventory. No, IMHO, next time a big chunk of lots bumps against the buildout deadline, St. Joe (and other developers for the same reasons) will give grace again. No developer is going to want to shell out the cash for a large number of lots and then be stuck with trying to sell them again.

I agree that developer build out time deadlines have lost their teeth for the time being, but it is still a little unnerving having that uncertainty hanging over your head.

The Preserve has comparatively low association dues but does have a build out time of sometime in 2009.

Years ago when we visited the Preserve I was amazed how far it is to the beach-but once you get there it is beautiful!

I heard that 4 lots sold toward the end of the year in the Preserve for around $200k but I have not seen verification of any closings.

 

[pk305]

The Preserve at Grayton Beach just had a homeowner's vote to further extend the buildout....it's my understanding that it passed and is now 2012.

 

[pk305]

And, yes, there were a couple of Preserve closings around $200k in December. However, the most recent that I know of was in January for $225k.

 

[SHELLY]

The Preserve at Grayton Beach just had a homeowner's vote to further extend the buildout....it's my understanding that it passed and is now 2012.

Please remind me again as to the purpose of a "buildout" as hawked to potential buyers by developers' salespeople? Anyone?



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[hi n dry]

One of the Preserve lots did close:

LOT 94 THE PRESERVE AT GRAYTON BEACH OR 2606-1295 OR 2744-3955
$195,000 SOLD

This is the lowest priced "flip" I have seen in the Preserve.

The extended Preserve build out time may help sellers, but his comp won't.

Anyone want to bet if the prices will go significantly lower in the Preserve?

 

[beachmouse]

Please remind me again as to the purpose of a "buildout" as hawked to potential buyers by developers' salespeople? Anyone?



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Community lore here says that in the early days of Bluewater, 5 out of every 6 lots were sold with pretty tight buildout dates because the original developer wanted to discourage ordinary land speculation and flipping and encourage a bigger number of people to move there early on so that an actual community would form in the wilds beyond Meigs bridge. We didn't get here until the late 90s, but from what we've seen and heard, it worked out pretty well.

If you're planning to be an end user of the house, I see it as a draw to be surrounded by neighbors who care about the neighborhood instead of empty lots owned by people who still live in Metarie full time and have no intention of building soon.

 

[SHELLY]

lots were sold with pretty tight buildout dates because the original developer wanted to discourage ordinary land speculation and flipping.

Oh, yeah, right--to discourage speculation and flipping...now I remember..........

 

[fisher]

And, yes, there were a couple of Preserve closings around $200k in December. However, the most recent that I know of was in January for $225k.

PK and HI--check my post from 1/12 noting one December closing at $195k and one at $200k.