Are master-planned communities a good real estate investment?
One of the concerns many home buyers have is whether their new home will not only maintain its value, but appreciate over time. After the recent real estate meltdown that saw many homeowners “under water” - or owing more on their mortgage than their home was worth - buyers are understandably cautious about making such a major investment in a home and neighborhood.
Master-Planned Communities: A Strong Track Record
The good news, however, is that when it comes to home sales and appreciation, master-planned communities have a strong track record of performing better than traditional subdivisions or “bedroom communities” that lack the variety of neighborhoods and home styles, parks, commercial centers and other amenities of a master-planned community.
The U.S. Department of Commerce, for example, reported that in 2010 new-home sales across the country sank to their lowest level since 1963. Yet that same year, master-planned communities across the country actually saw new-home sales increase. What’s more, that trend has accelerated as the economy has rebounded: A 2013 survey by real estate advisory firm RCLCO found that new-home sales were up in a majority of master-planned communities surveyed, with Nocatee’s 72 percent sales growth over 2012 making it the 6th best-selling master-planned community in the nation.
A More Stable Investment
A report by the Urban Land Institute, meanwhile, notes, “Overall, according to several real estate experts, new-home buyers during the housing downturn exhibited what’s been termed a ‘flight to quality’ or a movement to safer, more stable housing investments.
That stability, experts say, results from the fact that master-planned communities are carefully planned from the earliest stages of development. As a result, homeowners face no unwelcome surprises such as overdevelopment, congestion or businesses that suddenly crop up in a residential area. In addition, most master-planned neighborhoods are governed by homeowners associations that ensure the community is well maintained, protecting the neighborhood’s property values.
The Best Place to Invest
As the economy continues to strengthen, real estate advisor RCLCO reports that master-planned communities continue to attract new home buyers seeking a stable real estate investment: “In this environment of improving consumer confidence,” RCLCO writes, “many MPCs credit their enhanced sales in 2012 and early 2013 to their reputation as the best place to invest given the variable quality and level of remaining distress in some locations, as well as the value-sustaining ability unique to MPCs.”
For more information on Nocatee home sales, visit the Nocatee Welcome Center or call 1-800-NOCATEE.
