Why are New Home Sales sluggish?

Two reasons. Rise in interest rates and builders are asking a lot of stinking money!!! One more. There are a lot of new homes being built in Palm Beach County and most new home communities in Palm Beach County start with a price point of $400,000 and up.

Kolter Homes for example has two communities in Palm Beach Gardens. Alton with townhomes starting in the $400’s and Single family homes in the mid $500’s. That’s usually before accounting for any upgrades you might like and not including some additional closing costs that buyer’s pay in a new construction contract. Call us at 561-667-4171 before walking into a community to tour model homes. We are able to make sure you are receiving all the benefits a builder will offer such as closing cost credits, free lot upgrades and higher-end finishes allowances they won’t just readily share always. Also, we may be able to find out about finished homes the builder wants to move that were built on spec or another buyer broke their contract. Builders never want vacant homes sitting, so offer greater incentives to move them.

Ancient Tree is another new community breaking ground January 2019 in Palm Beach Gardens, Florida. You’ll have to pay in high $500’s to low $600’s to be one of the first residents of this new neighborhood. This is the old Vavrus Ranch on Northlake Blvd out west of Ibis and PGA National. It’s not a golf club community, but the City of Palm Beach Garden’s Sandhill Crane golf course is right next door and has a brand new clubhouse that is gorgeous. $600,000 and up is the price range for older homes in the neighboring Bay Hill Estates community, so a new home in Ancient Tree may be a bargain. I sold a home a couple years ago for about $775,000 in the newest section of Bay Hill Estates. The PGA National Estates course runs through Bay Hill Estates, but you don’t have to be a member or pay fees to enjoy the golf course views. Lots in Bay Hill Estates are close to half acre, so probably a little more land than Ancient Tree.

Along with Ancient Tree, DiVosta Homes is also building out Sonoma Isles and Windsor Park at Abacoa in Jupiter. Again you’ll be right about $600,000 for Windsor Park and over $700,000 for Sonoma Isles. DiVosta does have one community in Lake Worth priced under $400,000. I’ll share that community in a New Homes in Palm Beach County starting under $400,000 list to follow.

There are two new communities that have broke ground in the western communities west of West Palm Beach and Wellington near Southern Blvd. Arden is being marketed as an Agrihood and will have several different builders with prices ranging from $300,000’s to $700,000’s to start. Westlake is in what we refer to as the acreage or Loxahatchee. Generally minimum 1 acre parcels this community was carved out in the middle of it all. Westlake as well will have several different builder’s product and is already advertising homes in the $400,000 – $600,000 price range as ready to move-in, but they are also supposed to have some homes starting at a much lower price range that I’ll share in that under $400,000 list.

Bottom line is there is a lot of competition among competing homebuilders throughout the county. There are more neighborhoods we didn’t even mention in this post that might be attractive to you and condo towers in great locations with great amenities that are brand new. A new home can be a great purchase, but make sure to contact us so we can give you the full picture and help you negotiate the best deal.

Check out the under $400,000 list.

Author: Joby Slay, MBA

I am a Real Estate Professional with over 18 years of real estate experience in everything from property management, investment, development, mortgage financing, and sales. I earned an MBA with a Concentration in Real Estate Development from Nova Southeastern University finishing in the top of my class with a 3.9 GPA. I'm established as a leading real estate agent in Palm Beach County, consistently ranked in the top 2.5% of agents by number of closed transactions, and often described as a "true professional" by clients and other agents. I understand that for most people buying or selling a home may be the largest single financial transaction in their lifetime and I carefully listen to the client's goals and then assist the client in creating a home buying and selling plan. I then use the education, experience and knowledge I've gained in closing hundreds of transactions to help guide my clients to reaching their home buying or selling goals. If you ever have a real estate question feel free to call me directly at 561.667.4171 and I will be happy to speak with you.

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