Why build new construction?

There are 2195 pieces of raw land available in Watauga, Ashe, and Avery counties at the time of this posting.

236 pieces of raw land have sold in the last 180 days.

There are 967 single family homes and 250 Condos/Townhomes actively on the market.

In the last 180 days, 754 single family homes and 245 Condos/Townhomes have sold.

It’s time to talk NEW CONSTRUCTION! At this pace, the High Country will be so low on inventory by May that we might have nothing to sell.

There have been a lot of rumblings of price per sq foot being exceptionally high (over $200 per sq ft) and guess what; it’s TRUE and it’s only going to go higher. I’ve had a lot of folks ask me this question and here are some thoughts for you to ponder regarding this issue:

• At one point this was a second home market. Today I would estimate that around 60% of my clients are actually buying a home for primary residence. Think about it, a couple, mid 30’s/early 40’s, making about 100K a year combined, finally got the go-ahead to work from home and suddenly a light bulb goes off: “why stay in the city when we can live wherever we want!” And off to the mountains they come! Less crime, better schools, lots of fun activities; you get the picture.

• So, as all the homes go under contract (let’s call everything built prior to 2014 “pre-existing” for the sake of this exercise) there were 733 Homes of the 967 homes sold in the last 180 days that were built before 2014. On average these homes had 3 beds and 3 full baths, 2.1 acres, 2096 sq ft, and sold for about $137 a sq foot, or $299,145!

• Moving right along, of the WHOPPING 21 single family homes that sold and were built AFTER 2014, you have an average of 3 bedrooms 3 baths, 1.54 acres, and average SOLD PRICE OF $556,453, or average price per sq foot of $242!

So, what do these numbers mean for the High Country?

• Get ready for a massive increase in new construction, BUT be prepared to pay $200+ per sq foot. Unlike your larger cities, the Boone Area doesn’t have any track builders like Ryan Homes or Lennar Homes. ALL construction is pretty much custom. Most builders are so busy they can’t start a new house for a year, or even two, without hiring en masse. 

• Local is key up here.  The craftsmanship of the homes built is far superior than what you would find in a larger metropolis. Energy efficiency and preserving and protecting our environment is key. These builders do not have economy of scale. They buy that drywall for one to 4 houses at a time, not 100, so they don’t get that price break of a track builder.  Here is an example of what one of our local guys, Lost Ridge Construction, can do:

• Most importantly, and often forgotten, well and septic. Add at least $20K to any standard build up here for those. Of course since we aren’t building (for the most part) on flat land, either, a foundation could also have to be a $100,000 structural masterpiece to fit on the side of a mountain. 

• BOTTOM LINE: If you own land, you are that much closer to getting it sold. If you are looking to build, prepare yourself for a higher budget or a smaller house. Better get those older homes while they last, if you can! 

Tags: Build Cost, Construction, New Construction