New Homes= Growth and Opportunity.
I recently met with a new client who has some great plans for building wealth in Real Estate. One of the first things they said was that they were looking for a “good deal” and even said it a bit tongue in cheek, knowing that this seems somewhat impossible these days. From my perspective its not so much about a great deal, as it is about buying something that has tremendous upside. There is literally nothing that feels like a good deal when you consider the price per square foot or the cost of land these days. What it really comes down to is what areas are up and coming, and what areas are poised for massive growth. Really all you have to do is look up my transactions in the NWMLS and its no secret where I have been taking people to find a deal- Monroe. Yep. Monroe, that’s the town we moved back to recently, and the place where I have moved lots of other families, in many different phases of their lives. I could tell you tons of stories about folks that couldn’t happier with their recent move to Monroe!
Like every town in the Puget Sound, and especially those that are in the midst of a growing spurt, traffic can be a big issue. This is not a new challenge, this is something that is pretty much universal around here. Clearly in areas like Monroe, where there are hundreds of new homes under construction, and very little being done to upgrade the roadways to handle the additional traffic loads, things are going to get worse, before they get better. If one of your critical needs is going to be an easy commute and lack of traffic, in most cases you need to double your housing budget, or start looking East of the Cascades. That’s just the painful truth. One tool I have found particularly helpful in discovering just how bad (or good) traffic can get in a certain area is the Google Maps feature that allows you to select a departure time, and calculate your commute based on what time you plan to leave instead of what traffic is doing the moment that you do your search/route planning.
So now that were on the same page with regards to Puget Sound traffic and congestion, lets talk about what you stand to benefit from buying in a up and coming area. Since this is a conversation I find myself having all the time, Lets take the largest growth segment in Monroe, new homes. This is where I believe the most potential for immediate growth (home equity) exists right now. In the past year or so I have helped folks negotiate a great deal on new homes from a few of our larger Regional Home Builders in Monroe. Quadrant, SeaPac and Pulte. Each of these builders have a similar product and are building large subdivisions in the area. There are several other Builders in town right now, both actively building and in the planning and permitting phases for several new developments.
A large percentage of my clients have decided to purchase brand new homes, typically large, stunning homes, on smaller lots. For some people this just isn’t a reality, if you have a boat or an RV that you need to store at your house, most developments will not allow this, which is both good and bad depending on your perspective. For myself and many others, its just not an option, however this is a topic for a different post.
Here’s where the true opportunity exists in buying one of these new homes- there’s no end in sight! There are currently several hundred new homes in the planning an permitting phases! This means my past and future clients who buy one of these “cookie cutter homes” will have homes very similar to theirs being built in the area, for years to come. I have a client closing on a new home this month, and it is one of the first closings in the new development. We recently had a conversation about the construction noise that may wake him up in the morning from time to time, as they finish building out his new neighborhood AHHHHHH. THE. SWEET. SOUND. OF. MONEY. My advice was to smile and mentally do the Scrooge McDuck (swimming in piles of money). While he will only hear homes being built near him for a few Months, there will be homes just like his built in his own neighborhood for at least another 18 months. This means that nearly the exact home he is about to close on (that just appraised above purchase price) will be built for months and years to come. That sound of new homes being built, is the sound of a new high price being set for his own home every time another one sells.
While some might cringe at the thought of living in a home just like so many others in the area, those who own one of these homes will have a new batch of comparable sales each and every month for years to come. You will hear me often say, “a home is only worth what someone is willing to pay for it” and that is an absolute truth. When someone buys a home similar to yours, home size, lot size, location, features, and finishes, it establishes just that, what someone is currently willing to pay. It’s much much easier to demonstrate value when you have a steady stream of “comparable sales” and when those sale prices and volume are creeping up at an astonishing rate, all the construction traffic and noise in our not so small anymore town, are the sweet sounds of money!
Yes, all these new homes and new people are changing this small town, its happening and there not much anyone can do about it. While there is some immediate pain involved in a rapidly changing area, in the end everyone benefits. Your best bet is to make sure all your friends and family move out here before its too late!
If you would like more information about New Construction in Monroe please don’t hesitate to reach out.