Homebuilders get creative to woo buyers, Realtors

Southern Land Co. believes its Tucker Hill residential development in McKinney is so unique that eventually it will sell itself. Burdened with the realities of today’s soft housing market, however, company officials are pulling out the stops to increase foot traffic — and sales — in the sagging market.

“The idea is to get people here,” said Jim Cheney, vice president of corporate communications with Tennessee-based Southern Land. The company has used everything from community concerts to plane rides to reel in buyers.

Tucker Hill’s $248 million planned community broke ground in early 2007 on 800 acres zoned for 2,100 homes and amenities such as pools, walking trails, a dog park and other green spaces. Houses will range from $350,000 to more than a $1 million.

So far, there are 30 houses finished in Tucker Hill, with contracts on 10. The homes are close together, with small front yards, large front porches and garages along alleys in the back. It is an example of neo-urbanism, a pedestrian-friendly design style with a diverse range of housing. The 16 planned phases will take more than a decade to finish. Joe Rider, vice president of community development sales and marketing, said 75 to 100 houses will be started in 2009.
To help increase foot traffic through the neighborhood and promote a small-town feel, Tucker Hill gave away trees during a spring market attended by several hundred. And over Labor Day, the community sponsored Arts on the Lawn, which included music acts and entertainment and was attended by 900 people.

“These events allow us to give folks the vision of what the community will be like,” Rider said.
Kathy Self, operations manager for Arlington-based First Texas Homes, which has homes in 51 communities in the Dallas-Fort Worth area, said that regardless of marketing strategies and promotions, buyers and banks are simply too conservative for much success in the current market.

“You can throw a big party out there, it’s not going to get people in,” Self said.

Margaret Pesnell, marketing director of Hillwood Residential, said the focus has shifted away from wooing buyers and more toward impressing Realtors. Hillwood recently flew two groups of Realtors to Costa Rica to promote property there for second homes. The company also has a 15-year-old incentive program in place, “which right now is more important than ever,” Pesnell said. A Realtor who sells two new homes is rewarded with a free trip.

“As important as these Realtors are to us all the time, we need to be in front of them even more,” Pesnell said.

David Brown, director of the Dallas-Fort Worth office of the housing market research firm MetroStudy, said Tucker Hill’s “unique product and design” will set it apart from other subdivisions.

“It’s a new type of concept for the D-FW market,” he said, adding that there are just a few other communities being built in the area with similar concepts. “To capture the buyer, they’re having to raise the bar and give them a reason to come to the community, other than just another house.”

Builders think they’ve found sweet spot

In a North Texas housing market where starts are off a third from last year’s pace, mortgage lenders are cutting staff, Realtors are competing aggressively for a contracting number of sales and the number of foreclosures is the only thing on the rise, the first sign of hope — be it however modest — has emerged.

Houses in the $250,000 to $300,000 price range actually saw sales increase by 0.7% in the second quarter from 2,412 to 2,450, according to research by the housing consultant Residential Strategies.

While that number is far off the North Texas housing market’s glory days from earlier this decade, every other price point has continued to see dramatic drops, according to Residential Strategies data. Houses priced from $111,000 to $200,000, for example, saw a drop in sales of 14% in the last quarter. And closings on high-end homes — those costing $501,000 or more — did no better than hold steady.

Area builders are responding, with starts on houses in the $251,000 to $300,000 price range up 6.4% in the last quarter. All other price points saw a decrease, as many builders are trying to unload their inventory of finished homes.

“There’s lots of activity in different parts of the region,” said Bob Morris, executive officer of the Home Builders Association of Greater Dallas. “It’s not new spec-built product. It’s been sitting on the market for six to eight months. There’s no rational reason to bring new product into the market.”

The numbers reflect “current market realities,” said Jim Gaines, research economist with the Real Estate Center at Texas A&M University. It’s difficult for builders to get reasonable financing for houses at lower and higher price points, he said.

“The segment of population that can afford homes are in the above-median price bracket,” he said. “And a lot of these buyers may be saying now is a good time to hire a builder who might be selling a $250,000 or $300,000 house that a year ago would have been a $300,000 to $350,000 house.”

‘Not business as usual’

Nationally, home sales are off by 62% since the peak of the housing market in January 2006, according to numbers from Residential Strategies. In the Dallas-Fort Worth area, closings are off 32% from their peak.

“It’s not business as usual, but it’s not a disaster,” said Jody Reese, principal with Residential Strategies. “You’ve got to readjust.”

And that’s what many builders have done, he said. Custom builders that had ventured into lower- and midpriced homes have moved back to houses priced between $350,000 and $600,000, Reese said.

“They just went back to their roots, figuring there was still a market there and more money to be made,” he said. “It’s gotten pretty competitive.”

Drees Custom Homes has houses for sale in more than 30 communities in the area, said Jamie Ovalle, director of marketing. Out of those, there are about five that have homes priced in the $150,000 range. Most of the new building is in the higher-end, Ovalle said, and the majority of the company’s sales are near Drees’ midpoint range of about $280,000.

Drees homes are selling well in areas like McKinney, Fate and Allen, Ovalle said, without disclosing sales figures. “It’s what’s hot at the moment,” she said.

The top market areas, according to Residential Strategies, include Southlake, Frisco, Allen, Castle Hills, Keller, Colleyville, Plano and Lucas. In many of those areas, homes priced at $300,000 and up are driving the housing market.

In Flower Mound, Lantana and Highland Village, houses priced in that range made up 68% of the annual starts, according to Residential Strategies research. In west Allen, the higher-end houses made up 86% of the starts. Of the 376 annual starts in Keller and North Richland Hills, 92% were at $300,000 and up.

“It all depends on where you build and what you build,” said Greg Alford of luxury home builder Alford Homes. The builder, with 28 years of local experience, has seen success lately in Dallas’ Preston Hollow neighborhood, which has attracted a number of builders during the past couple years.

The main impact of the sagging market is that finished houses are sitting empty longer.
“A lot of home builders just jumped into Preston Hollow thinking they could make money, coming in with bad designs and crazy prices,” Alford said. “That’s a lot of the inventory that you have sitting there. There are reasons that homes aren’t selling in some cases.”

Alford is sold out of homes in Preston Hollow. He just started building a spec home and has recently purchased a second lot there, he said.

During the past couple years, he has sold 30 to 40 houses in Prosper and now has an inventory of five. Alford sells an average of 18 homes a year, and will be close to that this year, he predicted. But profits won’t be what they were, because it’s a buyer’s market and builders are willing to cut prices on finished homes.

“We’re doing things differently than what we typically would do if it were a seller’s market,” Alford said. “Our goal for this year is to be in business and be profitable. 2009 is going to be a slow-going, getting back to normal.”

DALLAS STARS TO BUILD NEW DR PEPPER STARCENTER McKINNEY IN CRAIG RANCH

Attention all hockey fans . . . McKinney is getting a StarCenter!!!

The Dallas Stars and Hicks Sports Marketing Group (HSMG) announced today that they will build a new Dr Pepper StarCenter ice arena in Craig Ranch in McKinney, Texas. The Dr Pepper StarCenter McKinney will be built on 7.3 acres of land in Craig Ranch in far southwest McKinney. It is scheduled to open in August, 2009.
This new ice facility will mark the ninth Dr Pepper StarCenter in the Metroplex, utilized for youth and adult hockey, and general ice skating for the public. The city of McKinney will own the center and the Dallas Stars Hockey Club will operate it.

Hicks Sports Marketing Group is the exclusive sponsorship and marketing representative of the expansive Craig Ranch development. Just as the Dallas Stars, Texas Rangers, Liverpool Football Club and Mesquite Championship Rodeo are part of the Hicks Sports family, so now is Craig Ranch.

“We’re absolutely thrilled to be partnering with Craig Ranch,” said Jim Lites, president of HSMG. “This is a perfect location for a Dr Pepper StarCenter. The Dallas Stars have grown the sport of ice hockey to new levels in North Texas and we will continue to expose it to more kids and families and get them out there skating. More and more kids are playing hockey and this newest facility will only continue that trend.

“David Craig has hit a home run with Craig Ranch. We are impressed with his vision and we share his commitment to youth sports and top-notch facilities.”

The Dr Pepper StarCenter McKinney will have two sheets of ice, eight locker rooms, and a pro’s room where professional hockey players can teach classes. This StarCenter will also sport a girls’ exclusive locker room, as girls hockey is becoming more and more popular. It is expected that the facility will bring in 600,000 to 700,000 visitors annually.

The McKinney Community Development Corp.’s board of directors approved the funding of the new StarCenter last week.

“A lot of kids in McKinney are playing hockey and skating and having a StarCenter here makes good sense,” said McKinney City Councilman Brian Loughmiller. “It’s another opportunity to get ancillary development around Craig Ranch with it ultimately paying for itself. I, for one, am very excited about it.”

Added David Craig, founder and master developer of Craig Ranch, “There was an automatic attraction to the Hicks Sports Marketing Group for us and it’s a perfect relationship. I’m thrilled and honored to partner with Tom Hicks and the Hicks Sports Marketing Group. He’s a winner and we’re winners, and I think if you want to be the best, you have to partner with the best. Certainly, there’s no one better to do that than HSMG.”

Craig Ranch is a 2,500-acre master-planned, mixed-use development located in one of the most exciting growth centers of the Southwest - McKinney, Texas. A virtual city within a city, Craig Ranch allows business, entertainment, athletic and residential life to converge under the concept of “new urbanism,” which combines the feel of a traditional hometown.

The centerpiece of the community is the PGA TOUR Tournament Players Club at Craig Ranch, which is consistently ranked as one of the top golf courses in the United States by the USGA. The venue will be the site of the Nationwide Tour Championship in November 2008, and will be hosted by the prestigious Salesmanship Club of Dallas.

Currently under construction, the Town Center at Craig Ranch will be the heart of the development, featuring residences and loft offices above street bistros, fine dining, shops, boutiques and corner stores. A five-star luxury hotel will be adjacent to the Town Center, as will an amphitheater and a Veteran’s Memorial Wall, commemorating the 321 fallen American soldiers who hailed from Collin County.

The Cooper Aerobics Center at Craig Ranch was established in 2006 and offers an array of medical, fitness and wellness amenities to meet the needs of individuals, families and corporate clients.

The Michael Johnson Performance Center opened at Craig Ranch in June 2007 and is a 24,000-square-foot indoor training facility personally run by five-time Olympic gold medalist, nine-time world champion sprinter Michael Johnson.

There are 13 soccer fields and 14 baseball and softball diamonds at the Ballfields at Craig Ranch, which is home to the McKinney Marshals of the Texas Collegiate League, a wood-bat summer league on par with the prestigious Cape Cod summer baseball league. The facility runs tournaments nearly year-round, and is among the largest sanctioning bodies of Little League Baseball in the nation.

“This is an exciting time for Craig Ranch and the city of McKinney,” said Lites. “Hicks Sports Marketing Group is excited to be a part of it.”

Today's Texas Real Estate tops Hot on Homes for #1 Spot

August 7th, 2008

Today's Texas Real Estate(TTRE) tops Hot on Homes for #1 Spot in the DFW Metroplex on only their 2nd episode.

Neilsen Ratings for last Sunday show that as an average, TTRE rated .05 when Hot on Homes came in behind at a rate of .03.

The negative media about the housing market has placed a bad taste in buyers mouths all over the nation. Eventhough our market here in DFW is steady, the national media seems to daily find something wrong.

HotonHomes.com goal is to highlight the communities of new home builders for buyers to have many purchase options within the states of Texas, Oklahoma, and Louisiana. On the main page of the web site there is a big map where you can search for homes in Dallas and Fort Worth, Austin, Houston, San Antonio, Baton Rouge, and Oklahoma City. Within this latter there are builder specials, community videos, library, realtors, markets, and othe info relating to real estate in each market. At the markets section there are links for Baton Rouge, Houston, Orlando and Daytona Beach, and San Antonio, among others. Each segment highlights the communities and what a property can have or be added to a property for an additional cost.

Today's Texas Real Estate is a 30 minute show highlighting each individual property with accurate details and a, "what you see is what you get" mentality. It allows not only builders, but individual realtors like myself, to highlight our actual listings and on top of that, have many leads from each show that is aired.

I strongly am asking all realtors that are looking for that advantage to watch one show and see how the concept makes sense for Builders, Buyers, Sellers, and Realtors.

The show airs on Channel 21 in the DFW Metroplex. For Time Warner Cable channel is KTXA 12 and dish is channel 21.

I will be showcasing the beautiful "Bellavista" in King's Lake in McKinney, Texas on the August 10th show.

http://www.todaystexasrealestate.com/

CASA BELLAVITA IS AVAILABLE!!!!! McKINNEY, TEXAS

Casa Belevita is the most esquisite and unique property in North Dallas.

This Executive home is located in gated communty of Kings Lake in prestigious Stonebridge Devolpment*Pool-spa-waterfall,open & covered patios including outside KIT+upstairs balcony*3 Bedrooms on 1st floor & 2 Bedrooms up-all with private bathrooms*1st floor study,exercise room or 2nd office,wine room with bar,chefs gourmet KIT,butlers pantry,Family room & Living room & Dining room*Upstairs is media room,card-Gameroom,Family room & 2nd laundry room*Constructed as Dream Home by Acacia Builders*Every room is a conversation piece.

Extraordinary home built by Acacia Custom Homes is located in the gated community of Kings Lake in Stonebridge Ranch. Stonebridge amenities include; pools, tennis, fish & release lakes, parks, trails & golf courses (2 private & 1 public).

Outstanding property!

See more pics at www.holdennewhomes.com

or call 469-733-2723 and ask for Brad for a viewing.

Two Dallas cities named fastest growing, while Fort Worth population soars

A new report from the U.S. Census Bureau says two Dallas suburbs, McKinney and Denton, ranked third and 10th, respectively, on the bureau's list of fastest growing cities, while the city of Fort Worth ranked fourth behind Houston for experiencing the largest numeric population increase during the period documented between July 1, 2006, and July 1, 2007.

The data shows Denton's population growing from 110,304 in July 2006 to 115,506 in 2007, while McKinney's population increased from 107,075 in July 2006 to 115,620 in 2007.

Meanwhile, the population of Fort Worth, which experienced a significant numerical increase in population during the past year, had approximately 681,818 residents living in the city in July 1, 2007, compared to 652,365 in July of 2006.

Fort Worth follows Houston, which ranked first in the nation in year-to-year numerical population growth, with a population of 2,208,180 in July of this year, compared to 2,169,248 last year.

CraigRanchVIP.Com has launced!

On the 14th of June in 2008, CraigRanchVIP showcasing residential opportunities at Craig Ranch in McKinney, Texas has officially launched.

Here you can find new happenings in Craig Ranch and many opportunities from commercial to residential. Currently, CraigRanchVIP is showcasing lots in the development.

Visit CraigRanchVIP today to be a VIP!