Just as experts liken the financial downturn of the current milieu to the devastation of the Great Depression, just as they did in the 1920s, so too will folks pick themselves up, and with determination, forge ahead and repair the American dream dismantled by the pandemic. In the real estate market, American resilience is evident as the working and buying public regains its footing and rebounds.
Claudine Leger-Wetzel, Vice President of Sales and Marketing, of STOCK Development, a family-owned, regional, luxury home builder, describes it pointedly.
"At the end of April, it was as if there were a black lining over the sun, and a little pin pricked through, and you could start seeing the sunlight. A national economist called it 'the green shoot,'" she says.
The green shoot was a term used in 1991 by Chancellor Norman Lamont during a UK economic crisis to signify the return of economic stability even though it may be hard to identify by the general public.
"When we talk about the rebuilding of real estate as a sector of the economy, the good news is that the home building industry is strong. They have always said that when home building is doing well, the economy is doing well. Right now, nationally, home building is doing well, and we see that we are an integral part of rebuilding America, figuratively and literally," says Leger-Wetzel.
"If you look at all the tentacles, from the supplies that we purchase to the installers of that product, it is a huge, economic driver. There are many - if you want to call them - widgets, in a house, from hardware to doors, to lumber, to concrete. We may have 100 employees in our construction company, but the number of subcontractors that we use to build each of our homes magnifies the economic impact on our local economy.’
She makes the point that if you consider STOCK's core business as a luxury home builder, and the number of sub-contractors and vendors they employ, who patronize restaurants and other businesses, and who are at the core of our economy locally, that is a positive contribution.
"Hospitality is taking a hit, but if you think about these folks that still received their paychecks, they will continue to make purchases and patronize and help the economy grow," she added.
As for STOCK, Leger-Wetzel says that since the start of the pandemic in March, and for about six weeks, there was a lot of concern, as they noted that buyers held back.
“April was fairly difficult since it is generally a strong month. Buyers were concerned - the stock market fell, they couldn't travel, they didn't know what was going to happen. In spite of that, we did not see any cancellations on contracts, because they decided they were going to be patient, feeling that it would pass," she says.
Then, Leger-Wetzel notes that as April began to pick up and show signs of hope, the company projected that if they signed 10-12 contracts for May and 10-12 in June, they would still be at their goal for the year. Then, when May started, it was like the floodgates opened. Today, STOCK is doing the business they do in February at the season's height, when experts reported that home building was up 25 percent, pre-pandemic.
“It was quite unbelievable. The buyers started coming back in a strong way, and many of those that had hit the pause button were coming. They wanted to be in Southwest Florida or Florida. On top of that, we saw a frenzy from folks in the Northeast and the Midwest who indicated they didn't want to be homebound through the pandemic. They wanted to retire early and wanted their place in the sun," Leger-Wetzel explained.
"During COVID, Floridians could still go outdoors and ride a bike; maybe we couldn't go to the beach, but we could use our pools. The thinking was, 'If I am going to quarantine, I may as well do it in an enjoyable spot.' The interest rates for new or entry-level home buyers are as low as they've ever been, and people want their place in Florida," she explained.
STOCK's target buyer, she says, is mainly the second luxury home buyer, who will use the home seasonally and look to retire permanently at some point in the next five years, or so. Some, who now work from home look for homes with extra space.
"Many of our homes have a great room, open kitchen concept, and we also have a bonus room attached to it. people may use that as partially exercise or partially office," she added.
Noting that is it is a seller's market due to demand and lack of inventory on the resale market, Leger-Wetzel says she's heard of multiple offers, and some price increases across the board.
“Our goal for June was 21 contracts, I signed 45, and we have another 30 on the books," Leger-Wetzel added.
In some ways, a disguised blessing, the pandemic and the time it afforded businesses to reevaluate and adjust procedures and practices have been paying off, and that's a big part of the national re-build effort.
STOCK personnel took the time to enhance their technology, dramatically improve their website, utilize zoom calls, and overall, embrace technology.
"We started to use utilize virtual platforms to a greater degree, and began scheduling some of our design appointments virtually. We opened the conversation with clients, then gave them some homework, advising them to look at websites to select appliances, plumbing fixtures, or cabinets. The homebuyer would then attend the design meeting well-informed, making the process more efficient and better in so many ways," she says.
With sales up and interest high, STOCK is poised to see a continued uptick in the local real estate market.
For more information, call (239) 216-9447, or visit stockdevelopment.com.
STOCK, Development, a luxury, family-owned, and award-winning regional builder offers a one-stop purchasing experience with a real estate, title, mortgage, and pool company under one roof. Focusing on new builds of single-family homes, two divisions include the signature line with homes ranging from $1-$2 million and a custom line, with homes averaging $3-$20 million; one $50 million home being constructed in Palm Beach. STOCK builds in luxury communities from Palm Beach to Sarasota and from Naples to Estero.
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July 18, 2020 at 05:00PM
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