Elite20 Builder Meeting
Hello, this is Mike Acquisto, and that is Shana Acquisto. She’s a luxury real estate broker. She had an Elite 20 meeting yesterday for her real estate stuff, and you had a builder meeting and you have some feedback that you’re going to give us, right?
Yeah. So our late 20 group, there’s 20 of us and we meet monthly, and this month we had a great discussion. We had three builders that were there. We had Hyland homes. We had Aaron Graham with Hyland Homes. We had Kevin Egan with American Legion and Zach Schneider with tradition’s.
So these are all great builders, and I’ll tell you guys, you guys should all go to their social media pages and follow them. That’s how they get information out to us of new communities coming in or, you know, incentives, whatever is going on. And, you know, with their company, they’re going to share it on social media. So it’s the best way to get the information.
So if you guys haven’t followed them, then I suggest you do so. So. You know, meeting with them and sitting down and talk with them, I will tell you the thing that I took away and it just kind of was very clear to me is they are they care about realtors. They are true real estate partners who are not going to cut our commissions.
And they want to work with us. And they’ve, you know, they’ve stood by us through good times and bad times. And that matters to us when the market’s good and people feel like I don’t have to pay you, then you know what’s going to happen when the market shifts? Well, we’re going to remember that.
And when you’re doing that to a large, you know, how many realtors are there, when you’re doing that with this group of people who have always been the ones to bring the business to the builders, I don’t think that’s a smart idea. So I appreciate them being true real estate partners.
So we’re going to go through a couple of things. So I think the one question that everybody has is what is to be expected of the future, like what’s happening out there? So, you know, our price is going to go down because now the lumber is catching up.
No, the answer is no prices are going to continue to go up. Not just hearing it from these builders, but any analysts that you’re or economists that you’re listening to out there across the whole country. They’re going to tell you these prices are going to continue to go up.
So the next three to five years, I think we should expect a very strong demand. And the reason being is we have people relocating here from all over the country. People now can work from anywhere. You’ve mentioned this many times. Our weather is great and they can get some space here.
So it’s new and exciting and this is going to be a very popular place for a long time to come. So another thing is they mentioned what they’re saying is the the age of 30 to mid 40s are now forming their households, so households are being formed at a later time.
So you guys should really pay attention to this and start talking to some of those, I guess, millennials, you know, I don’t like to use the word millennials, but it is what it is. So because they’re going to be forming their households soon.
So I like to call them get out there. And why w g and metaphors?
Ok, that’s great. Yeah. You know, and we talk a lot about, are we in a bubble? Or are we creating a bubble? And, you know, from their standpoint, from all the builders, they said, No, this is not a bubble. There’s not going to be a bubble to burst.
So if you think about back in 07 08, when we did have an issue that was more of a financial, a result of a financial issue. Plus, at that time, we had an abundance of inventory, so we had too much inventory. Right now, we can’t keep up and they don’t see that changing anytime soon.
So I thought this was interesting, so when we’re talking about pricing, right, light farms, when these builders, when this development first came in light farms, the price per front foot was fourteen fifty one thousand four hundred and fifty per foot.
Yeah. So that’s a price per foot. Lot foot is the measurement of the space across the front of the property on how many feet that property is. Yeah, irrespective of how deep it is. So light farms came in at fourteen, fifty or Team 50,
And that was in two thousand. I don’t know what it was, but what four years ago? Ok, now in November of twenty twenty one, they’re expecting that price to be twenty three hundred. Ok. So, you know, it’s it’s getting pretty pricey out there.
So it went from 14 fifty to twenty three hundred. Yeah, so it didn’t double.
It didn’t double nearly. I mean, it’s going up at a rapid. It’s like a 75% increase, I would say. Yeah, maybe even close to 80 percent increase.
Ok. So we we’ve talked about how years ago we would say a million dollar home. I mean, it just sounded like it was so such in a far reach four for most people. Well, now it’s pretty. It’s pretty average. So in two thousand nineteen, I thought this was an interesting stat, too. In two thousand nineteen, thirteen percent of homes in Collin County were over five hundred thousand
Ok, 2019, thirteen years ago. Ok, now we’re at 25% that are above five hundred thousand in our area, so prices are going up. So they talked about are those just new home construction or total sales or average values?
These are just the average price point, not just new construction.
So they also talked about how they’ve had a record number of new constructions starting right now, too. And, you know, just getting materials is a huge issue that we all see buyers wanting to wait until something happens. That’s not a good idea, and I think we’ve seen that the prices are going to still go up.
You know, maybe we’re not going to see the multiple offers and the bidding wars that we’ve seen. But if they’re waiting for prices to come down, it’s not going to happen. Here’s a challenge that could happen. Interest rates could go up. So if you combine that with with the prices that have increased, that’s going to be an issue that’s going to price people out. They’re not going to be able to be able to do it.
We also talked about, I know I’m kind of all over the place, but I just want to kind of go through my notes, the tribute. So we talked about waiting lists for the builders. So the tribute, I think Highland Homes has over eight hundred people on a wait list for seventeen lots.
Right, and I ask them, why do you keep taking people and they said, you know,
Where’s the tribute?
Tributes out where Kyle and Veronica live?
The golf course one golf course.
Yes, out there and the lot premiums out there now are four hundred thousand for a lot premium, and those home prices are probably going to be in the two million mark.
Are those golf courses?
Yes. Golf course. Yeah, yeah. Oh no, those aren’t. Golf courses are in the lake. Ok, so those are lake lots. Now another thing that we talked about and let me see if I can find it. Another question people had was the PGA, when is this? When are they going to release these lots on the golf course and when are people going to be able to buy them?
Well, we don’t know. It’s probably going to be twenty twenty two for sure. Maybe twenty twenty to twenty twenty three before this happens and 60 foot. 60 front, 60 front foot lots is small. Ok, very small like garden home.
They’re going to be in the one and a half million dollar
Range for just the site. Just for the land.
Legit, that’s legit. So we learned a lot of stuff, you know, sitting down and talking with them, there’s lots of information we can’t get into all of them right now. But I wanted to just hit on some of these things because I think it’s important for us to know.
So wait, 60 front foot is 1.5 million.
The golf course
On the golf course. Would you rather live? Yeah, and that’s in a gated community. Yeah. So would you rather live in a gated community or on a private lake? All right, I like that. 60 front foot one point five million. Thirty five hundred linear feet of shoreline. I can do the math.
Yes, I like that. Anyone playing along at home figure out how many home sites that is and get us a number. Yeah.
So there you have it. So these builders, again, they’re true real estate partners. I really encourage you guys to reach out and and follow them on social media, you know, because they’re they are great real estate partners. But these prices are not they’re not going anywhere, you guys, they’re going up.
There’s a huge challenge right now. There’s a window shortage. So they’re all struggling to get windows in. Why are they struggling to get windows in because they don’t have drivers to get them here? So this is a huge, you know, nationwide issue that we’re seeing. We’re seeing a shortage of workers at restaurants and at retail shops.
It’s an issue. And now we’re seeing the drivers. We can’t get the materials delivered in a timely fashion because we don’t have the drivers. The drivers are now demanding a higher pay. And what they were explaining yesterday is we’re not even caught up. And I didn’t really. So we’re not really cut 07 and 08. We’re not even really caught up from that with having the amount of drivers, but now they’re wanting more pay, right?
So someone mentioned yesterday in our meeting that they’re going to lay off the current drivers. And get new drivers of people who was, I guess will get maybe paid less, I don’t know, like crazy thing, you know, people demand too much and then it’s going to be like, Well, forget it.
We have a whole, you know, line of other people that are are willing to do it. So it could be contracted out, I don’t know. But that’s an issue for sure. We know the lumber prices have gone down, but that’s not going to change anything around here because we can’t get the materials to us. The other issue are that they’re struggling with are frameworks.
So the framers, want easy jobs.
So these who doesn’t? I love this list is amazing.
The builders, Highland American legend and traditions are considered a more custom production where you can actually make some changes and customize your property, your home. So the framers out there, they like the easy jobs.
The custom production builders have more of a complexity to their in design, to their product. So, you know, it’s hard to get really good experience framers to come out and do the work. So it’s just another challenge.
I like it. You said a lot of amazing things. The framers want easy jobs and we don’t have enough truck drivers, so we’re going to fire the ones we have and hire new ones because I don’t know, I hadn’t heard that until Yesterday.That is how you get higher home prices for sure.
So places to watch. So Omkar is going to slide over a map that I was given yesterday. This is for tradition, but these three builders kind of go in together and they typically you’ll find all three of them in the same within the same development. So when you’re looking here and I don’t know if we can, if you can, if you guys can see it, if not, I can email this to you.
But we have Brook Hollow, so you’ll see Brook Hollow there on the map that’s, you know, close to Custer between Coyte and Custer on three eighty. And what they were saying is Brook this brook hollow area. That’s a place to watch because they’re going to have Brookwood and Lakewood at Brookwood there.
There’s still a thousand acres to be developed, and that’s going to be a really high end luxury development. There is.
And if you scroll on down on car, it’s going to say when these are coming. So in twenty twenty two, you’re going to see more in that Brekalo hollow area when some ranch and Mustang Lakes. And then the following year, you’re going to see this mosaic area and parks that Wilson Creek.
And that’s going to be I mean, I think tradition’s said their average price is nine hundred thousand right now. That’s the average. So look for these to be very high end luxury products that they’re going to have. So it’s interesting and you know, right north of actually south of First Street.
Off Custer there and prosper, there’s an over fifty five community called Ladera that’s coming in, and that was another thing that they mentioned is a lot of people are wanting to downsize or move here to be close to their their grand kids and their kids.
So there’s not a lot of of availability. I mean, there’s not a lot of products for them right now. So that’ll be good. And I would look for more of that to come in the future because we’re going to see more of that. We need a place to put parents and grandparents.
That one that you’re talking about, the over fifty five is that. Did they break ground on it yet? Do you know anything about it or is that the one?
Raise your Capital One and don’t know. We need to drive by there and take a look.
I think I saw a sign up there for Frazier Capital on Custer, right in that area on the east hand side of the road. It could be it’s it’s called Ladera. And then the land plan that’s right across Custer.
There is that where the Brook Hollow stuff is,
It’s it’s to the west of it. For close to the west of that, a well, and that’s going to be nice stuff, too. That’s excellent.
So it’s all coming. And you know, they they were saying Salinas really the place to keep your eye on, you know, they look for Salina to go from thirty five thousand people to three hundred. And, you know. Finding some space out there, it’s going to totally blossom, so it’s going to increase in size by like nine times.
Just think about that Fresco did. No, I understand. Yeah, it totally does it. That’s a huge number. So three hundred and fifty thousand, that’s more than the current size of Frisco. Yeah. So imagine Salina becoming the same amount of people as first of all, that’s all a lot.
You know, it’s really hard to be a builder right now. They were talking about some of the challenges they were having, and now they’re going, they’re being invited into a development to bid on lots. And they might have, you know, I don’t know, three options available in there.
They’re inviting, you know, 10 different builders to come in and bid on the lots. So, oh, they have driven, you know, the land prices are really what’s driving everything up, it’s not cost of lumber and materials and labor. I mean, that does contribute, but it’s really these underlying the land.