Triangle Land Forecast Outlook
All "dirt dogs" have the same question as 2015 gets underway: "What's in store for the Triangle when it comes to buying and selling finished lots and entitled land?" Here's our take.
We expect to see a more active land market in 2015: As builders have become more optimistic that the recession is really behind us, there has already been a 5-10% increase in land prices since the third quarter of 2014. And builders are taking a "long view" on the Triangle: many builders have already filled their land pipeline for 2015, and are now looking for 2016 deals and beyond.
National Builders Take Notice
We expect national builders to continue growing market share: Local developers that would have normally supplied lots to local custom builder teams are now more likely to sell off their smaller developments to the national builders. These national builders can finance development easier, absorb higher land prices, and take on more development risk.
Outward Expansion of Development
We expect development and housing activity to return to the "fringes" again: Large planned unit developments like Chapel Ridge and Wendell Falls are coming back to life as the market improves. The combination of lower fuel costs and living "close in" are pushing home buyers and builders back to neighborhoods that have not been active since 2007.
Jim Anderson is the President of Fuller Land & Development, a diversified real estate development company in the Raleigh-Durham-Chapel Hill region of North Carolina.Visit Bio Page