Lot Shortage!!

I just had a moment to catch up from the wild spring and start to the summer and was thinking about the new issues we are up against as builders and building customers.  The lots in Rochester are becoming very scarce and very few have been in the position to begin developing due to the recent down turn in the economy.  The ones who are developing, are running into uncooperative weather these past few months.  The lots that had planned on going in this year are now being pushed into late fall if even this year.  It has never been more critical to get this process going if you are at all thinking about building a new home.  In working with my clients I’m finding VERY little in good quality lots and you must keep in mind that if you plan to wait on a new one, you will be up against an average of $20,000 plus in increased cost to buy one you like.  Many of the lots left are bank related lots meaning the developer has worked with the banks they had to keep the lot cost where it is.  Moving forward, we are seeing a minimum of $50,000 in city fees and development costs.  Add this to the cost of the land at an average of $10,000 per lot and raw costs are up around $60,000.  A developer will not consider pricing these under $75,000 average cost or it won’t make sense to move forward with the project.  We have been fortunate to see costs hovering around the $50,000 the past few years and this change alone will bring the average cost to build up by $25,000 alone.  Add the lumber price increases and other material costs and we will soon see the new home costs start to dramatically jump for our buyers.  Currently, I’m building homes all over Rochester into Mantorville and Oronoco.  There are still some to jump on, but NOW is the time to do it if you are on the fence.  Call or email today to get this process started.  As busy as we are now, I’m only planning on busier summer and fall!

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