Could some of the most in-demand housing markets be cooling off?
Florida Builder Sells 26 homes in 90 Minutes
Holiday Builders of Melbourne, Fla. Sold out a 26-lot subdivision in just 90 minutes during a one-day event this past June at the Melbournw community of Magnolia Village.
Holiday Builders of Melbourne, Fla. sold out a 26-lot subdivision in just 90 minutes during a one-day event this past June at the Melbourne community of Magnolia Village.
|In just 90 minutes, Holiday Builders took deposits on 26 homes at a small community in Melbourne, Fla. Prices started at $61,900.|
The blistering sales pace is nothing new for this builder, which sold 12 homes in 12 minutes in 1998 and, a few years prior to that, 31 homes in four hours. Holiday expects to build 1200 homes in 1999.
According to Joyce Wilden, marketing director, buyers were attracted by the sale prices, which ranged from $61,900 to $69,400 for 984 to 1672 square feet, including the home site and a 10-year structural warranty. The area median for Melbourne is approximately $90,000 for lots with city water and sewer service. "The 10-year warranty isn’t unusual in this market, but it’s a good selling point," she says.
Holiday was able to deliver the homes affordably by purchasing a small, unfinished subdivision at a low price. The previous builder had completed 34 Victorian-style, wood-frame bungalows in the first two phases, but was unable to maintain the sales pace and abandoned the project. Holiday is building concrete block homes of a style often seen in Florida.
The builder’s marketing strategy included entry signage stating the home package price, and radio ads, print ads and mailers announcing the one-day sale. Holiday prequalified as many buyers as possible before the event, and assigned priority numbers to streamline the lot selection process.
"There was never a model on the site because we knew we could do it quickly enough to avoid the additional expense," says Wilden. "We had, however, just completed a nearby subdivision with the same style homes, and many customers drove to this community to see what they looked like."
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