2016 Was Rough Year to be Brooke Smith Builder
2016 was a rough year to be a builder in the Heights. It was a very rough year for builders in the Brooke Smith corner of the Heights.
The year started off well, but the oil bust put a damper on big new home sales.
Brooke Smith is an area I have loved and recommended for a long time. A few years back, land was cheap and builders could afford to build single story bungalows. New bungalows are pretty rare now (See photo of 501 Vincent by Wiseman Builders as the exception), though there are a lot of beautifully remodeled bungalows and the rarer Victorians. Most new homes now are bigger.
See my post on Remodeled Brooke Smith Homes.
The table below shows the second half prices (2016) of big new homes on full sized Brooke Smith lots
New Construction Homes-Brooke Smith-Sold 2nd Half 2016
|Descrip'n||$ Range||SF Range||Lot Size||$SP/SF||DOM**||LP/SP***|
Avg. 2618 SF
|**DOM=Days on Market|
Meaningless for new homes
|***LP/SP = ratio of list price to sales price|
The list price to sales price ratio (97% avg.) doesn’t reflect the real beating that builders took. Sales were so slow that the average list price was reduced by $60K as the homes sat on the market. After these reductions, buyers typically negotiated another 3% reduction.
2017 Prediction: The election is over, the economy is picking up, oil price is back over $50, big home sales are up, interest rates are up and expected to go up more. So, don’t expect any more bargains. If you are thinking about buying in Brooke Smith or other parts of the Heights, now may be the time.
A couple of new Brooke Smith homes are shown below. The new one story bungalow by Wiseman Builders is a rarity. More typical of new homes are the larger 2 story home, like the one by Bungalow Concepts.
See the attached pdf of Brooke Smith New Homes. It shows sales for second half of 2016 (Status = S = Sold) and it shows the new homes on the market as of today’s date. (Status = A = Active). You may also go to the MLS Search on my Brooke Smith Neighborhood Page to see all homes on the market