Homebuilders who just a year ago were mired in financial woes, putting projects on hold or drowning in inventory are inching back into Maryland's new-home market.Though sales of new single-family homes in the U.S. have shown solid gains over the summer and supply has decreased, builders say today's market is a far cry from the boom years. Credit for builders to buy land and put up homes remains in short supply. And rising unemployment and mortgage troubles are holding back consumers. Still, builders are positioning themselves for growth, expecting an upswing in demand by next year and fearing being left behind.National luxury builder Toll Brothers, which in August reported its first quarterly increase in signed contracts in more than three years, is actively seeking land.Los Angeles-based builder KB Home has resumed plans to build in Maryland and is rolling out a new design of energy-efficient homes with flexible floor plans priced to compete with foreclosures and resales.And local builder Caruso Homes, forced into a bankruptcy last year with debt of more than $100 million and hundreds of empty lots after signed buyers couldn't get loans, has emerged from Chapter 11, ready to build again. Caruso, an Anne Arundel County-based builder, worked through the bankruptcy to satisfy the demands of multiple banks and creditors and emerged last month a scaled-back version of the company that was building about 200 homes a year four years ago."We're at the point where we're spending 100 percent of our time working on selling houses and getting ready to start building again," said president Jeffrey Caruso, who founded the company in 1986. "We sold a couple last week, and will have those under construction in 60 days."Improvement in the resale market has given Maryland's new-home market a boost, said Ken Wenhold, director for Maryland and Virginia for Metrostudy, a national real estate consulting firm that tracks market trends. Over the past six months, new-home contracts in the state have jumped 20 percent compared with the same period last year, he said."A tightening of the resale market has finally pulled people off the sidelines," including those who, over the past few years, have delayed plans to move up to a larger home, he said.Much of the interest can be attributed to the $8,000 first-time buyer tax credit in the federal stimulus package, said John E. Kortecamp, executive vice president of the Home Builders Association of Maryland."I'm hearing from folks that are getting a relatively significant uptick in sales over the prior year," he said, though sales are well below levels of 2006, and building permits are down this year through August, to 5,283 units, compared with 6,497 in the same period in 2008.That uptick in demand, along with Maryland's historically strong job growth, has builders looking at the market, some for the first time, to make land and lot acquisitions."We're seeing more activity in terms of builders purchasing land and lots," Wenhold said. "Builders have the decision to buy lots now to maintain a presence in a core market. Builders are coming to the realization that the market is coming back, and we need to fill our pipeline."You have multiple builders all reaching the same conclusion at the same time, and there are only so many lots out there," Wenhold said.KB Home, which had lowered expenses and shed inventory during the downturn, stopped building altogether in the Mid-Atlantic in late 2007. But all the while, it hung onto land options in suburban Maryland and Virginia markets, said Vince DePorre, regional president.Now, the company is in the early stages of planning for new, single-family and townhouse communities in Upper Marlboro and Waldorf, both in Prince George's County, that are designed to be affordable for first-time buyers, he said. The Open Series homes, which the company rolled out nationwide in March, are billed as "affordable, flexible and energy-efficient," giving buyers a choice of adding or subtracting bedrooms, multiuse spaces and storage areas. Though prices for the Maryland communities have not been announced, they will be designed to compete in the market, DePorre said."A lot of submarkets in the area have become very healthy, with inventory coming down and prices stabilizing," DePorre said. "First-time buyers who were previously priced out are now coming back to take advantage of the return to affordability in the housing market."Toll Brothers, too, is seeing improved sales in all its Maryland communities, including in Howard County, where it just bought land, said Doug Shipe, the builder's Maryland group president. (The company said it is not ready to disclose details about the Howard County property or plans for that site.) In addition to Howard, the company is evaluating potential land acquisitions throughout the Washington and Baltimore suburbs, Shipe said, "to see which are good matches for Toll Brothers."Builders are benefiting from lower land and lot costs to some degree, but "they are not the significant discounts you find in other markets," Wenhold said.Kortecamp estimated that prices are down as much as 30 percent from their peak a few years ago in some cases."And that's a big factor, that there are perceived bargains to be had right now," he said. "There's an anticipation that there's going to be a significant need for new housing in the not-too-distant future."The credit crunch is affecting national, publicly held builders to a lesser degree, Wehnold said."National builders have the deep pockets that allow them to take advantage of these opportunities, and national builders will write down land and lots internally to have a competitive advantage," he said.A survey of National Assocation of Home Builders members released Monday showed that nearly two thirds of single-family home builders are stymied by a severe lack of credit for housing production, including less credit availability and more pressure on borrowers with outstanding loans. But those findings are probably more representative of nonpublic builders who rely on commercial banks, as opposed to the public companies that can raise capital by issuing debt or selling shares or rely on lines of credit, said Dave Ledford, senior vice president for housing finance and land development at NAHB.It's a different scenario from several years ago, when smaller, local builders, such as Caruso Homes, a single-family-home builder, had no problem getting land purchases financed. The builder saw rapid growth in 2005 and 2006 and by 2007 was constructing homes in about 20 communities in Maryland, Virginia and Delaware. The builder also was working with 2,000 more lots, on which it had options or was bringing through the zoning process. The company had planned to develop more than half of those lots and sell them to other builders and build on the remaining lots. Caruso's homes were priced in the $500,000 to $700,000 range."There was high demand and banks were eager to support these kinds of programs," Caruso said. "We were making a lot of money on home building and covering all the costs on the lots."But by 2006, buyers began to drop off or lose their financing; the slowdown worsened the next year, and "there were no longer the lines" when a new community opened, he said. By early 2008, Caruso's lenders began reappraising the properties at lower values, which accelerated loan payback provisions.Through the Chapter 11 filing in June 2008, Caruso worked with the banks to help sell some of the hundreds of lots or finished houses and to finish incomplete homes, many of them in Prince George's and Charles counties, and at discounts of up to 30 percent. Investors bought some of the properties and agreed to sell some lots back to Caruso in the future. The builder now has model homes and is selling in a 55 or older adult development on the Eastern Shore and two communities in Prince George's County.The builder also was able to repurchase lots from some of the investors for as much as $100,000 less than its original cost and will build homes similar to ones built before the Chapter 11 filing that will sell for less as well, starting in the mid-$300,000s. Caruso said sales have improved since buyers have begun to find it easier to sell existing homes to purchase a move-up home."It's still a challenging market, but houses at the right price are selling," he said. "Our business plan includes growth, but the number of communities we're building in will depend upon financing and the pace at which this market starts to come back."
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Copyright © 2009, The Baltimore Sun
Monday, October 5, 2009
Symphony Village
BUILDER PROFILE
SYMPHONY VILLAGE IS MUSIC TO BUYERS’ EARS
CARUSO HOMES INTRODUCES A NEW COMMUNITY LOCATED IN CENTREVILLE
By Nancy Menefee Jackson Contributing Writer Symphony Village at Centreville delivers on its name, with a harmonious lifestyle and traditional homes that strike just the right note. The streets are named for a musical reference, and the seven models bear the names of composers.
While the theme may be light-hearted, the quality of these exceptional single-family homes built by Caruso Homes is serious indeed.
A visit to the community, located in the charming town of Centreville on the Eastern Shore, just 40 minutes from Annapolis, starts at the clubhouse.
At nearly 14,000 square feet, the clubhouse includes an indoor and outdoor pool, tennis and bocce ball courts, a fitness center, a concert hall and a bar area for socializing. A putting green, craft room, billiards room and card room are all popular with the residents of this 55-and-better community.
“The clubhouse is the hub of the community – we have people who fall in love with that and then pick out a house,” says Betsy Spedden Ewing, design center manager for Symphony Village (www.symphonyvillage.com). “Our residents say they don’t have to go on vacation because they live in a resort.” It’s not just the building, but the activities it fosters that appeal to residents. Spedden Ewing notes that seven different types of card games are played regularly.
“We have cards every night,” she says. Water aerobics, a cycling club and a quilting club are just a few of the activities planned by a social chairperson and a social committee. Because 60 percent of the residents still work, it’s a timesaver to have so many offerings at the clubhouse.
Traveling is popular, too; the singles club just went to Bermuda, another group visited Branson, Mo., and plans are underway for a Mediterranean cruise next spring.
Throw in day trips to the theater, outings to Philadelphia and Annapolis, fishing trips and, of course, a jaunt to the beach, only an hour and 15 minutes away, and residents have plenty to do.
But they’re not just involved in the Symphony Village community. Spedden Ewing explains that many homeowners have become involved in outreach to the greater community as well, volunteering in local schools. Residents created and sold cookbooks to help fund a new kitchen for Centreville’s hospice, and Caruso Homes matched their donation.
It’s easy to see why residents take to Centreville – the quaint town features boutiques and restaurants, and residents can eas-ily walk to stores on walking paths. Topnotch medical practices are available as well.
Plus, residents enjoy plenty of energy for fun and fulfilling activities, since these maintenance-free homes free them from the tyranny of yard work and upkeep.
Symphony Village will have 395 homes when it’s finished, but already 280 have been bought. Only two lots that offer basements are left.
All of the homes are built for one-floor living, with the choice of either three bedrooms or two bedrooms and a den, along with two full baths and a two-car garage. Four models can accommodate an optional second floor.
The smallest of the seven homes in the community is the 1,775-square-foot Bach, which offers a luxurious master suite with twowalk-in closets. Starting at $353,990, it includes a living room and dining room; an island kitchen opens to a generous family room, and a two-car is standard.
One of the most popular options is a “sky basement,” accessed from a set of real steps in the garage – no worries about negotiating pull-down steps. Buyers can also opt for a rear sitting room or solarium.
The Vivaldi, at 2,152 square feet, is one of the most sought-after models. Starting at $375,990, it includes a large kitchen that flows into a breakfast area and family room, as well as a spacious master suite. A charming foyer leads to a living and dining room combination that is perfect for entertaining. A home office space, a den and a generous laundry room take care of everyday tasks. Buyers can opt for a second floor, with a bedroom, bath and loft, or extend the back of the house with a sunroom, sitting room, solarium or conservatory.
The largest house available is the Beethoven, which starts at $404,990 and boasts 2,414 square feet of exciting living space. Its stunning kitchen opens onto a huge family room, and generous closet space is found throughout, including a walk-in closet in the second bedroom. Buyers can opt to add a second floor with a bedroom, bath, loft and exercise room.
No matter which models buyers choose, they’ll find tile in the bathrooms, along with Moen faucets, and a master bath that includes dual vanities, soaking tubs and a shower with a seat.
In the kitchen, oak cabinets are standard, but buyers can opt for maple or cherry cabinets, and add granite, Corian or laminate countertops. The open designs ensure that “You can still be in your kitchen and not feel you’re missing out on anything,” Spedden Ewing says, adding the flow of the floor plans makes entertaining easy.
Along with the sky basements, one of the most popular choices is to add on an extra room – or two – in the form of a sunroom, solarium or sitting room.
“People are opting for that, and that way they’re able to take the smaller house and put the extra rooms on,” Spedden Ewing says.
What they’re really opting, for, though, and it’s a free option, is the relaxing charm of the Eastern Shore way of life. Best of all, residents of Symphony Village can enjoy that lifestyle in a quaint town that’s centrally located and within easy driving distance of Washington, D.C., Baltimore or Philadelphia.
SYMPHONY VILLAGE IS MUSIC TO BUYERS’ EARS
CARUSO HOMES INTRODUCES A NEW COMMUNITY LOCATED IN CENTREVILLE
By Nancy Menefee Jackson Contributing Writer Symphony Village at Centreville delivers on its name, with a harmonious lifestyle and traditional homes that strike just the right note. The streets are named for a musical reference, and the seven models bear the names of composers.
While the theme may be light-hearted, the quality of these exceptional single-family homes built by Caruso Homes is serious indeed.
A visit to the community, located in the charming town of Centreville on the Eastern Shore, just 40 minutes from Annapolis, starts at the clubhouse.
At nearly 14,000 square feet, the clubhouse includes an indoor and outdoor pool, tennis and bocce ball courts, a fitness center, a concert hall and a bar area for socializing. A putting green, craft room, billiards room and card room are all popular with the residents of this 55-and-better community.
“The clubhouse is the hub of the community – we have people who fall in love with that and then pick out a house,” says Betsy Spedden Ewing, design center manager for Symphony Village (www.symphonyvillage.com). “Our residents say they don’t have to go on vacation because they live in a resort.” It’s not just the building, but the activities it fosters that appeal to residents. Spedden Ewing notes that seven different types of card games are played regularly.
“We have cards every night,” she says. Water aerobics, a cycling club and a quilting club are just a few of the activities planned by a social chairperson and a social committee. Because 60 percent of the residents still work, it’s a timesaver to have so many offerings at the clubhouse.
Traveling is popular, too; the singles club just went to Bermuda, another group visited Branson, Mo., and plans are underway for a Mediterranean cruise next spring.
Throw in day trips to the theater, outings to Philadelphia and Annapolis, fishing trips and, of course, a jaunt to the beach, only an hour and 15 minutes away, and residents have plenty to do.
But they’re not just involved in the Symphony Village community. Spedden Ewing explains that many homeowners have become involved in outreach to the greater community as well, volunteering in local schools. Residents created and sold cookbooks to help fund a new kitchen for Centreville’s hospice, and Caruso Homes matched their donation.
It’s easy to see why residents take to Centreville – the quaint town features boutiques and restaurants, and residents can eas-ily walk to stores on walking paths. Topnotch medical practices are available as well.
Plus, residents enjoy plenty of energy for fun and fulfilling activities, since these maintenance-free homes free them from the tyranny of yard work and upkeep.
Symphony Village will have 395 homes when it’s finished, but already 280 have been bought. Only two lots that offer basements are left.
All of the homes are built for one-floor living, with the choice of either three bedrooms or two bedrooms and a den, along with two full baths and a two-car garage. Four models can accommodate an optional second floor.
The smallest of the seven homes in the community is the 1,775-square-foot Bach, which offers a luxurious master suite with twowalk-in closets. Starting at $353,990, it includes a living room and dining room; an island kitchen opens to a generous family room, and a two-car is standard.
One of the most popular options is a “sky basement,” accessed from a set of real steps in the garage – no worries about negotiating pull-down steps. Buyers can also opt for a rear sitting room or solarium.
The Vivaldi, at 2,152 square feet, is one of the most sought-after models. Starting at $375,990, it includes a large kitchen that flows into a breakfast area and family room, as well as a spacious master suite. A charming foyer leads to a living and dining room combination that is perfect for entertaining. A home office space, a den and a generous laundry room take care of everyday tasks. Buyers can opt for a second floor, with a bedroom, bath and loft, or extend the back of the house with a sunroom, sitting room, solarium or conservatory.
The largest house available is the Beethoven, which starts at $404,990 and boasts 2,414 square feet of exciting living space. Its stunning kitchen opens onto a huge family room, and generous closet space is found throughout, including a walk-in closet in the second bedroom. Buyers can opt to add a second floor with a bedroom, bath, loft and exercise room.
No matter which models buyers choose, they’ll find tile in the bathrooms, along with Moen faucets, and a master bath that includes dual vanities, soaking tubs and a shower with a seat.
In the kitchen, oak cabinets are standard, but buyers can opt for maple or cherry cabinets, and add granite, Corian or laminate countertops. The open designs ensure that “You can still be in your kitchen and not feel you’re missing out on anything,” Spedden Ewing says, adding the flow of the floor plans makes entertaining easy.
Along with the sky basements, one of the most popular choices is to add on an extra room – or two – in the form of a sunroom, solarium or sitting room.
“People are opting for that, and that way they’re able to take the smaller house and put the extra rooms on,” Spedden Ewing says.
What they’re really opting, for, though, and it’s a free option, is the relaxing charm of the Eastern Shore way of life. Best of all, residents of Symphony Village can enjoy that lifestyle in a quaint town that’s centrally located and within easy driving distance of Washington, D.C., Baltimore or Philadelphia.
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