Repositioning New Home Communities

Parker Associates is being called upon to re-position communities that got underway prior to the housing market collapse, but only completed a few homes before sales stopped. Investment and development companies are searching for solutions to re-starting these communities.
     Customarily, we are asked to define the optimum level of pricing to jump-start these communities, particularly those with expensive amenities in place or planned and promoted to initial purchasers. Are smaller dwellings at lower prices the only answer? If so, what price level is necessary to attract new buyers? And how can this strategy be presented in a positive way to existing owners who face lower values for their pre-recession homes?
     Can a planned amenity be reduced in scale to lighten the load on development costs as well as operating costs? What is the risk of abandoning planned amenities for a future owners' decision on construction?
     These are difficult questions that must be faced in a great many partially completed communities. We can help. Contact our seasoned professionals at info@parkerassociates.com or (904) 992-9888.

NAR Economist: Housing Forecast Hopeful

SAN DIEGO-"We've seen a steady downtrend in housing inventory for well over a year, and home prices appear to be in the early stages of stabilizing," according to NAR chief economist Lawrence Yun, who spoke about the National Association of Realtors' housing and economic forecast during the NAR conference in San Diego, an event that drew more than 19,000 attendees. "With expansion of the tax credit to additional buyers through the middle of next year, and no major unforeseen events impacting the economy, home prices should rise between 3% and 5% in 2010, but with wide geographic differences," Yun said.

A Fresh Start

The 2010 recovery in housing will witness consumer behavior substantially different from its characteristics prior to the Great Recession of 2007-09. All age and income groups have been affected and they will view new home purchase in a fresh perspective.
     Dr. David Parker has prepared an article on this topic for publication at the end of this year entitled "A Fresh Start" which explains the evaluation process with the aid of three diagrams. It details a four-stage community evaluation process to identify strategic growth initiatives for attracting post-recession consumers.
     If you would like to have a pre-publication copy of "A Fresh Start" please contact Parker Associates by phone or email and we will forward a copy to you: (904)-992-9888 or info@parkerassociates.com.

Homebuyer Optimism

Economist Robert Shiller reports in the October 12 New York Times on a survey of home buyers across major metropolitan areas in United States in which they expressed optimism about increasing house value. Responses from these buyers to expected value increase over the next year averaged 11.2 percent.
     Dr. Shiller concludes that this relatively small sample of new homebuyers represents a strong confidence level in future home values that is not based on factual evidence, but, if widely held, could lead to volatility in housing prices. His conclusion is that buyers believe

that the price decline in housing is over and it is a good time to buy.

Recovery On The Way

The October 2009 Annual Meeting of the National Association For Business Economics in Chicago reported that its national survey of economists indicates over 80 percent believe that the U.S. recession is over and expansion has begun. They are optimistic about the housing sector, with a projection of 2 percent price increase during 2010. Improving credit markets will lead the U.S. economy to solid growth in 2010 without concern about rising inflation.