Lakewood Ranch: A Model of Recovery

Posted by Michael Saunders on June 17, 2010

Lakewood Ranch Golf and Country Club

If you could position a glass dome over Lakewood Ranch—inclusive of such nearby neighborhoods as Greyhawk Landing and Heritage Harbour—you would have on exhibit a near-perfect microcosm of our region’s accelerating real estate recovery. For within this award-winning community and its many unique neighborhoods, buyers have scooped up the best-priced properties to such an extent that inventories of available homes have been pared down to levels that are at, near—or below—those typically considered normal in a balanced market. Moreover, they are confidently cherry-picking properties across all price ranges, so long as real value is at the core of every transaction.

As a matter of fact, based on the current pace of existing home sales in Lakewood Ranch—especially for properties priced below $150,000, below $300,000 or below $500,000—less than a four month supply is available for purchase in all three of these price ranges. Similarly, for homes priced from $500,000 to $1 million less than a six-month supply is available. Properties priced above $1 million have yet to re-establish a healthy balance—typically defined in the industry as a six to seven month supply, based on the rate of current sales. Yet with its supply now down to less than ten months, even the market for $1 million-plus homes in Lakewood Ranch is approaching equilibrium. Moreover, across all price ranges, less than a five month supply of properties is on hand. (Source: Trendgraphix, June 2010). Although it will be a very long time before sellers see prices rivaling those of 2004/2005, technically speaking Lakewood Ranch is on the threshold of becoming a sellers’ market again.

To pinpoint precisely how dramatically the Lakewood Ranch market has improved, one need only compare today’s level of inventory to that of two years ago when sales were painfully sluggish. Across all price ranges, the inventory has been drawn down from 958 properties in May 2008, to 341 properties in May 2010; a decline of over 64%. The number of properties priced below $500,000 has dropped by 61%; and those between $500,000 and $1 million by 71%. Even the inventory of properties priced above $1 million is down by 68%.

What this means, of course, is that Lakewood Ranch is far enough along in its recovery that dwindling supplies in the face of increasing demand is beginning to favor sellers again—who should not be surprised to receive multiple offers on their properties, so long as they’re among the most aggressively-priced in their competitive sets.

Of course, this resurgence didn’t happen overnight; and might not have happened at all had sellers not been thoroughly re-educated about unrealistic price expectations born of an artificial housing boom. Credit is owed to the agents who continually used unbiased, up-to-date sales information to counsel their sellers on the new pricing realities of the market.

“Agents from our office truly led the housing recovery in East Manatee County; not only by assisting sellers in pricing their properties correctly, but also by advising buyers on what constitutes great value in today’s market,” says Gloria Weed, Managing Broker of the Lakewood Ranch office of Michael Saunders & Company. “Indeed, agents throughout the company kept in constant contact with their clients, providing them with accurate information and timely updates about our changing market. They didn’t bide their time, hoping against hope for the market to change back; but instead took a hard look at the data, which we knew would provide sellers with the evidence they needed to make the most practical decisions. The information passed along was gleaned from many reliable sources; including industry experts with proven track records for forecasting the market with dead-on accuracy—including Steve Harney and other worldwide industry leaders with whom Michael maintains strong professional ties.”

Perhaps one of the most telling signs of the strength of Lakewood Ranch’s recovery is the fact that the developer, LWR Communities, just days ago announced the release of numerous new home sites to builders responding to high demand for new product—no doubt secondary to the shortage of existing homes. Inasmuch as builders throughout all price ranges took such a punishment during the housing meltdown, they wouldn’t so much as turn a shovel of dirt in today’s market if stacked-up demand wasn’t firmly in place.

So far this year, there have been more than 100 lots either reserved, under contract or sold in Lakewood Ranch; with 85 homes currently under construction. There are presently 200 single-family homes on the market in the community, an amount equal to less than three percent of its total inventory; and 158 homes have sold on the resale market thus far in 2010.

Perhaps the one facet of Lakewood Ranch that makes it such an extraordinary place to live and own property is that the developers have remained true to their original vision of the lifestyle that will be forever found within the 8,500-acre master-planned community. In addition to superb amenities that include restaurants, top-rated schools, unique shops and boutiques, business parks, a hospital and medical center, four masterfully-designed golf courses; and an athletic center with fitness, aquatics and 18 lighted tennis courts, residents enjoy a oneness with nature readily apparent in over 150 miles of sidewalks, hiking trails, community parks, lakes, forest and wetland preserves; and abundant native wildlife.

Still an award-winning model of what an ideal master-planned community ought to be, today’s Lakewood Ranch is also a model of recovery that gives testament to a region that will never be held down for very long.