Developers buying up foreclosed developments

The past few years have been a whirlwind of trends with investors purchasing batches of foreclosed homes and distressed properties.  We are now seeing a new trend that has been gradually climbing for the last 18 months.  No one imagined new construction bouncing back like it has the past few months but we are experiencing a shortage of good inventory.  New construction is booming and home buyers are latching on to properties before they are even being started.  Developers have picked up a new trend.  Distressed land that was developed and then lost in foreclosure is now creating a frenzy among new construction specialist.  These properties are being purchased at pennies on the dollar.  Often times, the land can be purchased for less than what it would have cost to install the infrastructure.  This is allowing developers to build new homes and provide a superior product for less money.  Buyers are getting great deals on great properties.

Not everyone is happy about this.  Often these developments have existing houses and developers are killing the comps in the subdivision.  There is little that the existing home owners can do besides sit back and wait for the developer to start creeping their prices up.

For the buyer who has been on the fence about purchasing, you may want to get back in the game and find a deal before they are all gone.  One development in the Blue Ridge real estate market has seen and increase of over $70,000 in the first year on new construction.  Interest rates are also starting to climb.

For the developer looking to be a player in the market, most of the smaller project have been purchased but if you are willing to stick your neck out a bit, there are some higher end developments that can purchased  in the $5,000 to $8,000 per lot range.  Individual lots are a tough sale but homes move quickly.

The economy in the Blue Ridge area is almost entirely supported by new construction and tourism.  The downtown Blue Ridge area is a booming area and new shops, restaurants, and boutiques are opening monthly.  Great time to visit.

View Blue Ridge Real Estate

Nathan Nicholson
706.455.8284

Jamie Abercrombie
706.455.6303