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Builders bet on home market

Home: Lennar announces new endeavor to help revitalize local home construction

Posted: June 24, 2011 1:55 a.m.
Updated: June 24, 2011 1:55 a.m.

The new Brookville at River Village homes, located in Valencia, were just recently introduced by home builder Lennar. Despite the weakened market, Lennar has continued to invest in the real estate market.

 

After home construction nearly came to a halt in the past few years, local builders are once again headed back to work sites.

Lennar recently introduced its new Brookville at River Village homes located in Valencia.

Locally, the sounds of new- home construction have been heard this year coming from undeveloped sites which sat vacant during the recession.

New-home construction activity has increased with several developers getting back to the task of building homes in the Santa Clarita Valley.

Lennar is betting on the market stabilizing and pent-up demand to draw buyers to the new-home market once again.
With interest rates at historic lows, homebuyers looking to get back into the market may find a new, turn-key home to be the right option for them.

River Village
Designed for first-time and move-up buyers seeking value, as well as design for their money, the new Lennar homes feature high-tech green features and home automation systems allowing the homeowner to remotely control and monitor the electrical systems from anywhere.

Priced from the low $500,000s, the homes range from 2,756 to 3,512 square feet and are available with up to five bedrooms and three and one-third bathrooms.

“Brookville is in a great gated community and offers an incredible floor plan,” said Greg McGuff, division president.
Wired for high-speed computer access, surround sound speakers and ceiling fans, all homes come with stainless steel appliances and granite countertops.

Community amenities include a residents-only clubhouse with a recreation room, swimming pool, spa and children’s wading pool.

Challenges
While high unemployment and foreclosures continue to present challenges to all homebuilders, Lennar has remained focused on growing its core business of home building.

Despite the weakened market, Lennar has continued to invest in the real estate market by purchasing nearly 10,000 new home sites in 2010 through the third quarter.

The company, founded in 1954, sold thousands more homes when they put more than 6,000 home sites under contract in 2010.

In the third quarter of 2010, Lennar reported it was able to achieve the highest level of operating margins since 2006, when the real estate market peaked.

To hit these margins, the company focused on managing costs by building to suit buyer and market needs and restructuring its joint venture associations with companies like Newhall Land and Farming.

Presenting at the UBS Building and Building Products CEO Conference in November 2010, Lennar said construction costs per square foot had decreased nearly 25 percent from its peak period.

The decreased cost has allowed the builder to deliver new homes with added value at a lower cost to new buyers — which River Village homes promises to offer the first-time and move-up buyer.

River Village is located at 26623 Millhouse Drive, Santa Clarita and is open daily. For more information call (661) 513-0977 or visit www.LENNAR.com. 

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