Tuesday, February 2, 2010

What's Going on in Your Neighborhood, Belle Creek? Originally Published November 2, 2009

Because I live in Belle Creek- and because I purchased my home in 2001 when the market was insane- I have a vested interest in what our micro-market is doing.  I regularly check out the solds, under contracts, new listings.  Being a runner, I usually notice when something new pops up in the neighborhood.

So, when I blogged last about what has sold recently in the neighborhood, I admit, I wasn't showing you the whole story.  Being a mixed-use community, we have townhomes, cottages, series 1 homes and series 2 homes.  Being in close proximity to the development world has taught me about some of the builder-ese that is used in a master planned area.  Buyers may know their homes as a "Logan" or one of the "Wellshire Collection".  I just know my house is in the 2 series...

Enough blathering, let's get to the meat of the issue.

In the past year, 20 homes have sold in Belle Creek.  Prices were holding steady until just recently.  On average, Belle Creek homes were getting about $105 per square foot overall.  This was regardless of which model was sold. 
In the past 3 months, however, we have seen that number take a nose dive.  Price per square foot is now at a frightening $90 per square foot!  There would have to be some sort of reason why.  That reason may surprise you.  I know it did me.

As it just so happens, until a month or so ago, there was still builder inventory available.  There were a couple of homes that were built but never closed back when BC was just forming.  These 2 homes were on the market for quite awhile- over 650 days, as a matter of fact.  Quick math- nearly 2 years.

So, when you are a retailer (of sorts), and you have inventory that doesn't move, what do you do?

Slash prices!  Have a Clearance Sale! 

The good news about this is that they sold.  We now have 2 formerly vacant houses that will have nice neighbors living in them.  That brings our home values as a neighborhood up. 

The not-so-good news is that they were reduced so severely that they dragged the value of the neighborhood (in price per sqft) down.

The verdict:  if you don't have to sell now, maybe you'd be better off waiting for awhile.  But if you know of someone who has been wanting to live in Belle Creek, it is a great time for them to buy.

Next:  UPDATE: How's the Market Doing Now?

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