Established Coastal Georgia Planned Community Sees Phenomenal Sales in 2021

Just 20 minutes from historic Savannah, GA, sits an idyllic 4,400-acre island community with every amenity you can think of and more. For nearly 50 years, The Landings has welcomed families and retirees to enjoy its idyllic lifestyle. This multi-generational gated community offers two deep water marinas, five clubhouses, six championship golf courses, and 31 tennis courts, all within a golf-cart drive. This coveted community still brings in the buyers year after year. But, right now, you’ll need a bit of patience if your goal is to purchase a home right away.

We asked Raoul Rushin, President of The Landings Club, to share his thoughts on the opportunities and challenges of the new real estate boom.

According to Raoul, “Although the pandemic has had enormous consequences for all of us, real estate took an unexpected turn and hasn’t looked back. This turn of events has been nothing short of amazing. The current foundational issue is that there are a lot of buyers, but not a lot of inventory. Rates are at a 17-month low, and the desire to move from large cities, as well as the retiring boomer market, continue to fuel the market.”

Rushin doesn’t see a fall-off in demand coming anytime soon. Last year was a 20-year record for sales for The Landings, and they are already 34% ahead of last year as of June 2021. They have also seen a 15% to 20% price increase since last year, and that has not deterred buyers. He reports, “our homeowners are coming from, i.e.. California, New York, Connecticut, Florida, etc. They are coming in and spending $800k to $2 million with relative ease.” The average home price at The Landings is $637,000, and the range is from $350,000 to $1.5 million-plus. They have already sold five times the number of properties priced over $750,000 than they did at the same point in 2020.

“What’s different about this market is that, if people need to sell their home to relocate, in almost every market and price range, they know they can sell it very quickly. The lucky ones are finding a house right away, and the others are waiting for just the right house to come along so they can grab it. That is unimpacted by price range.”

A Mental Shift Has Occurred

“Mindsets have shifted since the pandemic. People are not wanting to run the rat race any longer. People want to find a work/life balance. Life is short, and the time is now. Folks are asking themselves, ‘Do I want to look back and say, I was a great commuter, or do I want to look back on great life experiences I start to create now?’ Things can change on a dime. People can work from anywhere. They are saying, ‘Let me get started because things aren’t going to change unless I do’.

“We have seen the average age of our buyer dropping. We certainly still have the retiree, but we have a younger generation currently living here, but moving here in number as well. This is a very unpretentious, relaxed place and a true community of almost entirely full-time residents.”

Advice for People Starting Their Search

“Use this time wisely to dig deeply into what you want your life to be. Do the research, and visit communities to match what that vision is. Think about ‘What is the ultimate picture of your life?’ Make sure the amenities, as well as access to things outside of the community, match up with that. The last decision is about the home itself; the color of granite and whether you have stainless steel appliances will not determine how you live your life. If you find the community and the amenities you want, the house will follow.”

“If you just have to have your dream, you are going to have to build. At this point, a resale will be the best economic decision, even with a renovation. But right now, good, bad, or ugly, the construction costs and construction time is the most significant gap between resale and custom building that I have seen in my 30 years in this business.” “Be patient and be ready; if the inventory doesn’t present the option that you want at the moment, then be ready snap up your ideal home as soon as it comes on the market.”

Changes in Latitude

Latitude Margaritaville Sets Sales Records

Since Minto Communities’ first Latitude Margaritaville community in Daytona Beach, FL, opened in 2017, it has garnered unparalleled interest from customers everywhere. But this past year has surpassed all of their expectations with record-breaking sales in all three active-adult communities: Daytona Beach, Hilton Head, and Watersound. When asked about resetting expectations for buyers and about the state of real estate today, William Bullock, President of Minto’s Latitude Margaritaville Division, shared the following for Ideal-LIVING readers:

Pandemic Increased Demand

There has been a huge surge in buyers in the last 18 months. We had a steady flow of buyers prior to the pandemic; then, there was a brief pause during April and May of 2020 with the uncertainty of the pandemic. As people adjusted in mid-May, customers came back to the sales centers, and we had a record-setting year for sales in 2020. People took the pandemic as an opportunity to advance their decision-making process. As a result, our Latitude Margaritaville properties in Hilton Head, SC, Daytona Beach, FL, and our newest property in the Florida Panhandle, Watersound, saw a tremendous surge in sales.

Because of the pandemic, we did a virtual launch of our property in the Panhandle of the first 200 homesites. We did a 30-day preview period where we had people tour models (all socially distant). Over 1.000 people put their names into a drawing for an opportunity to buy one of these 200 homes. In the past, we had people camp out for the chance, but we knew that wasn’t appropriate considering COVID-19. Now, starting in August, we will release more homes and will continue monthly thereafter.

There is huge demand and a very limited inventory of move-in ready homes. So when people come in, they should be patient with the process, but expect that we can build them a home. Our deliveries are approximately a year out. We’ve signed up a year’s worth of contracts in Daytona and Hilton Head, and we are starting to build that depth into Watersound. In Daytona, we will close 600 homes this year and close to 400 homes in Hilton Head, and we are hoping to have approximately 450 homes in Watersound next year. There is plenty of opportunity for future homebuyers in Watersound as the possibility exists for thousands upon thousands of homes in that location.

We are also eyeing Texas in a very big way, and I wouldn’t be surprised if the Latitude flag is flying there in the near future.

The Difference Between Now and Previous Years?

Historically, active adults would take two to three years to complete the decision buying process because they visit multiple communities and they want to find the right spot. However, waiting that time frame in today’s market will put an extra year or two on top of it.

This is much different than the 2005-2006 market when investors would buy four and five houses at a time, thinking they could flip them as an investment. We’re just not seeing the investor penetration in this market, and secondly, it’s much harder to get a loan today if you are an investor seeking multiple properties. You need income and assets to back up your purchase. I think the lending industry learned a valuable lesson, and it’s a much safer proposition to buy today.

It just requires patience. There are supply disruptions throughout the entire global economy. There are so many components that go into a house. One day it’s windows on delay, the next day, breaker boxes; then the day after that it can be insulation. We are constantly adjusting to the supply constraints. You can’t get the goods through the system fast enough anymore due to shipping and logistical challenges. This is having drastic effects on the deliveries for all types of industries, homebuilding included. At Minto, we are closely monitoring the supply chain and constantly adapting to meet our commitments to the customer.

It is still a great time to buy a house and interest rates are historically low. But, please come in with patience and understanding. The good thing about Minto is, when we give you a date, we keep it. We haven’t been bumping people on an estimated completion date. While we can continue to deliver homes, we are mindful of the number of homes that we sell, so we can maintain quality and maintain a viable construction pace.

The Luxury Market

We are extremely mindful of our Latitude Margaritaville pricing and keep homes starting at $250,000. However, the demand for luxury properties has been phenomenal. Minto has a flagship luxury community in Naples, The Isles of Collier Preserve, that is currently sold out of available homesites and is waiting on the next phase to be released. We sold almost twice as many homes this year in the first half of the year than we did in all of last year. These homes have an average sales price of $750,000. There is a lot of resiliency in the upper-tier luxury market. We have not seen indications of a slow down in the luxury market.

It's a great idea to explore model homes within the planned communities to get ideas for your new home. From color schemes to building materials and finishes, it's always good to come prepared with what you want.