Some New Home Builders Are Surviving...But How?

Toby Tobin published an excellent article in his newsletter on January 19th listing Palm Coast Builders and how many houses they "pulled Permits" for.  IE a building permit to enable them to build a new house.  He does not give details about the source of the information, but Toby has a reputation for providing very reliable information.   The key question...What is the quality of houses they are they building during these difficult times? 

Here is a summary of his report:
"Flagler County 2009 New Home Construction Report

Many builders are gone but a surprising number are still active. 157 building permits were issued to 37 different builders.

Palm Coast, FL – January 19, 2010 – 2009 marked a dismal year for local homebuilders, across the country and here at home in Palm Coast in Flagler County, FL. Homebuilders faced competition from distressed properties selling for about $80 per square foot. Lenders were not returning their calls. With few exceptions, the term "spec house" has become an anachronism. Though national builders abandoned our market when real estate sales dried up, an independent source reports that 157 new homes were permitted in Flagler County by 37 different builders who are gutting it out.

My hat is off to these 38 builders and their employees. I thought you would like to know who they are.

The following builders pulled more than 3 permits during the year:

• Seagate Homes – 39 permits

• Adams Homes - 23

• Moronda Homes – 14 permits

• Vanacore – 8 permits

• Habitat for Humanity – 6 permits

• Intervest – 5 permits

• CBV Resort Homes – 5 permits

• Amaral – 5 permits

Other builders who pulled permits in 2009 are:

• New Coastal

• Staughton

• Skyway

• Olsen

• Florida Green

• Paytas

• Lancia

• Ideal

• Country Club

• Auburn

• Applied Building

• Wayne Duffy

• Stajo

• Skyway

• Skyhawk

• Saltwater Homes

• Rinek

• Palm Coast Homes

• Morello

• Machin

• Longworth

• Harmon

• Delanoy

• Del

• Antonio Capela

• Haley

• Grandeur

• Gold Coast

• Gemstone

• Fontana



Reader Comments

So what is the cost new?

We can't see the actual turnkey cost new for the permitted construction, as the permits only reflect the base cost. The resales are still around $80 a square foot, for average construction on an average lot, many needing repairs and updating. Many will only buy Brand new homes as they have the money and don't want to rehab an old home. The estimate for new is around $135 plus the lot, and lots go for about $5 a square foot for average.So for $140 a square foot you get new turnkey. That's still way under the national average. The property taxes are also low, so people come here for the pricing. Resales will never go up in value at the current rate of demand, and may go down further, as they age and more foreclosures flood the market. We have a ways to go both localy and nationaly before things pick up. It is estimated thet 55% of all sales in late 2009 and early 2010 will be due to the tax insentives for new and move up buyers. After that expires and/or rates go up we will be in for another drop in values. We are waiting for jobs, and so far they can't be found, at a level paying enough, to drive the real estate prices up.

Posted by George Meegan"


To see the entire article go to Toby’s site at

http://www.gotoby.com/news/palm_coast_flager_2009_new_home_report.htm

TED SAYS:  Now more than ever prospective buyers need to work with a Buyers Agent who has a history of our local market and is up to date on the changes that have taken place. You a prospective buyer? Talk ToTed ! tedleshersr@gmail.com