Custom Homes Trend Down Slightly From All Time High
As the economy began to recover, custom homes led the way in housing market statistics. In 2009, the percentage of custom homes being built by an owner, contractor, or builder on the owner’s land – a single, custom home built with collateral – was 31.5%, a record high amount of custom homes being built.
For 15 years, most builders and owners had shied away from building one custom home at a time, however the financial constraints of the Recession brought this trend back in 2009. The reason that builders were not building custom homes was because they could build spec homes on credit before the Recession. However, builders were unable to build spec (inventory) homes because of the overwhelming restrictions on lending following the Recession. The typical AD&C credit for new home starts without a pre-sold contract was simply unavailable. Therefore, this custom home building trend for individual builders and individual owners continued until just recently when the housing market started to make a full recovery.
Now, builders are able to build spec homes once again, and the capital that has been built up by new home builders by the selling of new home inventory that had been sitting stagnant for many years has loosened up the purse strings for builders to now reverse the custom home trend. Also, lending restrictions have eased slightly as well. As a result, the percentage of the housing industry that includes the construction of custom homes has dropped back to 21.9%.
At Bedico Creek Preserve, a master planned, Conservation Community in St. Tammany Parish, our builders build both inventory homes and custom homes for new home buyers on the Northshore. Our buyers come from Mandeville, Covington, Abita Springs, and Madisonville. We also have around 30% of interested buyers from the Southshore in New Orleans, Metairie, & Kenner. The reason for this diverse audience of interested home buyers is because of the 16 available builders that build new homes and new, custom homes in our subdivision. We also offer lots for sale in 7 different, distinctive Neighborhoods in a variety of price ranges and sizes. Bedico Creek offers something for everyone, so if you have not already had the chance, Come Out & Visit Our Community to Discover the Preservation of the True Northshore Lifestyle. Call 985-845-4200 or E-mail Info@LiveBedico.com.
