On Friday, July 20th the Wall Street Journal catapulted a local trend into the public spotlight: the $1 Homesite Phenomenon. The article’s title: “Fore Sale: Luxury golf communities have hit a rough patch. After years of aggressive golf-course expansion, interest in golf declined just as the market for luxury homes plunged. Now, once-pricey real estate is available at below-par prices. Selling a lot for $1.”
As you can imagine, this sparked a notable increase in interest for area opportunities of inexpensive homesites in communities such as Colleton River, Belfair, and Berkeley Hall who all currently feature homesites for $1.
The “why” behind the $1 lot phenomenon is fairly straightforward. Full Club membership (ranging between $12,000 and $17,150 per year) conveys with each home or homesite – creating an environment where two elements are now in play:
- Supply: Sellers are making club decisions with their properties. For those sellers who have decided that Club membership is undesirable to them for one reason or another, the only vehicle to resign membership is through the sale of their property. As a result, the sellers have proven far more motivated to compete for the select buyers who were in the market over the last few years as they look to unload their responsibilities to the Club. More importantly, the private golf market was overbuilt, and the supply has outpaced demand over the last 6 years.
- Demand: Buyers represent a different group today than they have historically in these communities. Rather than “hopeful end users” (buy today to use sometime in the future), the vast majority of buyers today are End Users. They see near term value in either the Club, the real estate, or both.
These buyers today universally see their timing as incredible. These Clubs enjoy tremendous financial stability (thanks to the steady stream of revenue from individual memberships tied to each property) and the value of their offerings are undeniable. While it’s not a particularly good time to be selling lots in these communities, it’s a fantastic time to be buying.
Call Johnny (843) 384-8105 or John (843) 384-4463 for more information and a list of opportunities.