Shhh…..Developed Lots are Beginning to Move in North Fulton
categories: Alpharetta Real Estate, Crabapple, Lots, Milton Real Estate, New Construction, Roswell Real Estate
I don’t hear anyone talking about this but I’ve noticed recently that some residential developed lots in Alpharetta, Roswell and Milton have sold. Builders appear to be cherry-picking some good values out of foreclosure. On the surface it may sound surprising with what seems like a lot of resale inventory still out there. However, that inventory is down to levels not seen since the end of 2005. And, of course, new construction inventory fell of a cliff.
On top of that, the first time home buyer tax credit has been expanded and extended to move-up buyers that have owned their home for at least 5 of the last 8 years. With 47% of home sales this year (nationally) coming from first time buyers; this tax extension / expansion will definitely help bring those inventory levels down even further.
The lots that seem to be moving are mostly in more expensive communities such as Echelon , The Overlook at Litchfield, The Manor Golf and Country Club and newer communities that have not really been built out too much, like Crabapple Oaks . Homes for sale in Crabapple Oaks were originally listed for the high $800’s but are now selling in the low $600’s. In fact, there is a fantastic deal in one of the new Crabapple communities that I’m surprised hasn’t been jumped on yet. However, one surprising sale was a 1 acre lot in Country Club of the South that sold for $750K. Not exactly what I would call a deal, but someone certainly wanted it.
I had recently written a post about this same situation in Forsyth County, where builders were buying developed lots for sale out of foreclosure, building new homes in the first time buyer price range and selling them rather briskly. This is a clear indication that there is a healthy appetite for new construction and again, may be a leading indicator of a stronger recovery in the local housing market. I think we will see more of this to come in the 1st half of 2010.
We are starting to see the same thing in several higher neighborhoods throughout North GA. A few of the high-end custom builders have mentioned that they are seeing some serious interest for 2010. Very encouraging signs.