Housing analysts are predicting new home prices will rise by 10% to 15% in 2013, chiefly because of rising demand and because of the scarcity of land. This is a significant shift from the economic downturn, when builders halted development and liquidated land for pennies on the dollar. From 2006 through 2011, residential land nationally lost a cumulative 58% of its value.
To be sure, land prices in Pima County are still far from the peak levels of 2005 and 2006 and remain notoriously volatile. But, these end of Q1 sales show a definite shift in prices for new transactions versus rolling options commitments made during the downturn. For consumers, costlier land means more-expensive houses. Land cost constitutes about 21.7% of the final sale price of a new home, according to the National Association of Home Builders. As land prices rise, builders tend to pass 100% of those costs on to consumers.
New Transaction – Richmond American Homes of Arizona bought 87 platted and engineered lots for $2, 392,500 ($27,500 per lot) at the Mountain Vail Estates, a 135 acre master planned community with 501 home sites, located east of Houghton and Mary Ann Cleveland Way in Vail, from Diamond Ventures’ affiliate MC 140, LLC. The lots are 50′ wide. Will White of Arizona Land Advisors in Tucson represented the seller.
New Transaction – Also in Mountain Vail Estates MPC, Lennar Arizona purchased 78 platted lots for $1,930,500 ($24,750 per lot) for 45′ wide lots from Diamond Ventures. Will White of Arizona Land Advisors in Tucson handled the transaction for the seller.
New Transaction – Scotia JV 2005, LLP dba AF Sterling Homes, purchased 14 finished lots for $1.12 million ($80,000 per lot) from Redwing Investments, LLC of Tucson (Bud Cardinal, manager). The subdivision, Uplands atLambert Lane, is a gated community at La Canada and Lambert Lane with a total of 16 lots and two homes constructed by seller. Kit Donley of Donley Commercial inTucson represented the seller and Mike Carlier and Jim Vincent of the Carlier Company inTucson.
New Transaction – New Era Tucson, LLC an affiliate of Redpoint Development, (Daniel Leung, managing member) sold 42 platted and engineered lots to Pulte Homes of Scottsdale for $1 million ($23,810 per lot). The new 42-lot subdivision, Edgar Heights, totals approximately 6 acres and is located northeast of La Cholla Blvd. and Magee Road. Dan Feig and Aaron Mendenhall of Chapman Lindsey in Tucson represented the seller in the transaction.
New Transaction – Whisper Canyon Holdings, LLC of Tucson (Steve Quinlan, managing member) purchased three custom home sites at Catalina Foothills Estates No. 2 from Wymore Revocable Trust of New York, NY for $210,000 ($70,000 per lot). The three approximately 36,000 sq. ft. lots were split from a larger infill piece located northwest of Hacienda Del Sol and River Road, and will be used for custom homes. Tim Harris of Long Realty represented the seller and Steve Quinlan represented the buyer. The buyer is also a partner in Miramonte Homes.
New Transaction – Charles Bennett, Jr. of Torrance, CA bought 35 finished lots at Mountain Manor View for $472,500 ($13,500 per lot) in a bank owned REO sale from FNBN-RESCON I, LLC. The subdivision is at Irvington and Cardinal in Southwest Tucson. Average lots size is 5,288 sq. ft. Dan Feig and Aaron Mendenhall of Chapman Lindsay of Tucson represented the seller.
New Transaction – Lennar Homes purchased 6.58 acres of raw land for development of 27-lots in Rancho Vistoso Parcel 10N in Oro Valley from JDW Management, LLC (Jason Wolfswinkel, manager) for $1.12 million ($41,480 per lot). The lots are still in design review but are slotted for 45′ x 115′ lots at this site. Jim Vincent and Mike Carlier of the Carlier Company handled the transaction for the seller.
New Transaction – Fairfield Homes (Dave Williamson, managing member) is in plan review for the Donut Hole at Stone Canyon in Oro Valley. Homes sell in the area for $600-$800,000 and will be structured as a rolling option between Fairfield and Stone Canyon. Details of the sale are not yet available. Jim Vincent and Mike Carlier of the Carlier Company handled the transaction.
New Transaction – Denise Alexis Roberts bought 7.76 acres for six platted lots in Picture Rocks from the McReynolds Family Trust for $180,000 ($30,000 per lot). It is unknown at this time plans for this site.
Rolling Option – Maracay Homes’ affiliate, Maracay Rancho Sahuarita, LLC completed its final takedown at Entrada Bonita in Rancho Sahuarita with three finished lots for $90,000 ($30,000 per lot) from Klondike Land Portfolio of San Diego that it was land banking for the builder. The 55′ x 120′ lots were part of a 107-lot rolling option that began in December, 2008.
Rolling Option – Maracay Homes’ affiliate, Maracay 91, LLC closed out its option with the final three finished lots at Tangerine Crossing from MFV-FC Portfolio, LLC an affiliate of Forest City Land Group in Cincinnati, OH for $217,500 ($72,500 per lot) for the 70′ x 117′ lots. Will White of Arizona Land Advisors Organization in Tucson and Ted Herman, formerly with Land Advisors and now with Sharpe and Associates represented the seller. The option began in 2010.
Rolling Option – Maracay continued building at The Preserve at Dove Mountain IV in Q1 and took down seven finished lots for $395,500 ($56,500 per lot) from Miramonte at Dove Mountain and three at $166,500 ($55,500 per lot). Average lot sizes run 5,678 sq. ft. in this subdivision. Will White of Arizona Land Advisors Organization of Tucson represented the seller. The option began in January, 2011.
For additional articles on land sales in Q1 see the following article published by Arizona Daily Real Estate News this quarter:
[mepr-show rules="58038"]Quinlan can be reached at (520) 918-3801 and Harris is at (520) 918-2463. Feig and Mendenhall can be reached at (520) 747-4000. To reach White contact (520) 514-7454. Herman is at (520) 299-8766. Donley can be contacted at (520) 907-0955 and Carlier and Vincent are at (520) 529-3800.[/mepr-show]