New Homes – Where and How Much are We Talking?

Last week we touched on the comparison of buying a new home versus a used one. We said, “With the current scarcity of existing homes for sale should buyers consider buying a new build? Or is resale still the preferred course? With Caveats. Big caveats. Buyers should consider a new build.”

The major caveat to that advice is of course, Location. Location. Location. Fourth to that is price. Unless you’re buying new in an infill community, which would often be town-homes rather than single family detached, you will need to head for the outskirts of town for that new home community. The big question there is, “How do you spell c-o-m-m-u-t-e?”

“Oh yea, there is something else out there of potentially huge value: The new Interstate 11 planned to go from Mexico to Canada – through Tonopah. Hmm.”

Home Buying 101: The further away from the center of everything, the less the price of  everything – real estate-wise that is. Actually I just made that up, but it has kind of a nice ring to it, wouldn’t you say?

Investors, Bill Gates for example, are buying up tens of thousands of acres way west of Phoenix, as in Tonopah. In Gates’ case, his real estate investment firm wants to build a “Smart-Tech” city known as Belmont. Oh yea, there is something else out there of potentially huge value: The new Interstate 11 planned to go from Mexico to Canada – through Tonopah. Hmm.

https://www.bizjournals.com/phoenix/news/2017/11/30/bill-gates-puts-remote-arizona-area-on-map-sparks.html

Infill is usually more of an urban setting. Since the crash, builders have wisely bought and developed “infill” properties for affordable housing. This trend is still happening, though affordable land is evaporating. We’ve also been seeing luxury unit development in downtown Phoenix and Scottsdale where older properties are being demolished making room for new high rises.

Single family detached new build communities are mostly production tract homes. Custom home construction is most often found in Paradise Valley and Scottsdale.

If you want single family detached construction you’ll pay a premium. For example, new single family homes have a median price of:

  • Paradise Valley: $3,895,000 (Low of $955,000)
  • Scottsdale: $1.7 Million (Low of $325,000)
  • Cave Creek: $649,000 (Low of $371,000)
  • Phoenix: $529,000 (Low of $217,000)
  • Surprise: $330,000 (Low of $236,000)
  • Buckeye: $310,000 (Low of $200,000)
  • Maricopa: $233,000 (Low: $191,000)
  • Tonopah: $316,000* (Median for all homes: $250,000)

(*There’s only 1 new home for sale and 10 resales)

And as mentioned last week, if you or anyone you know wants to see new home communities, contact us. We’ll show you what’s out there and we’ll be your representation, rather than only the builder representing you. And there’s no cost to you!