http://www.sar-cdn.com/news/local-news/2017-12-21/busy-year-building-st-johns-county-might-be-warm-2018-activityBusy year of building in St. Johns County might be warm-up for 2018 activityAs water pours into the new Crystal Lagoon at the Beachwalk development, it’s a symbol for all the new residents about to flow into the county next year.
Home building in 2017 was the busiest year St. Johns County has seen since the recession. But based on activity by area developers and national industry and economic trends, it appears that this year is just the lead-in for a bigger 2018.
It’s a trend developers apparently saw coming. Otherwise, there wouldn’t be the kind of opulent projects like Beachwalk opening next year.
Beachwalk developer John Kinsey doesn’t claim to be an oracle, but he said his company saw enough signs of strength to invest in the 740-home community off of County Road 210. He’s spent millions on landscaping and amenities, including the 14-acre lagoon, which is currently in the 100-day process of filling with water.
“St. Johns County has one of the strongest housing markets in the state over the last several years,” Kinsey said Wednesday. “We see a considerable future in the single-family housing market in St. Johns County for all the reasons that bring people here in the first place: terrific quality of life, terrific schools and terrific communities.”
The numbers tell the story of the county’s popularity. November saw permitting for 308 single-family homes, the busiest November since the recession. That brought the total homes permitted to 3,790 for the calendar year.
With such a rapid pace, 2017 will be close to the record year of 2005 with 4,152 permits for single-family homes. Whatever the total of 2017 turns out to be, there’s a pretty good chance 2018 will eclipse it considering what’s happening in the market and the economy on the national level, where building is gaining strength.
The National Association of Home Builders/Wells Fargo builder sentiment index released Monday rose five points to 74 this month. That’s the highest reading since July of 1999.
According to the Associated Press, readings above 50 indicate more builders see sales conditions as good rather than poor. The index has remained above 60 since September of 2016.
The Commerce Department reported late last month that Americans bought new homes in October at the fastest pace in a decade — a 6.2 percent monthly increase — reflecting a strong economy but also a worsening shortage of existing homes for sale.
New home sales last month rose to a seasonally adjusted annual rate of 685,000, the third straight monthly gain and the best sales clip since October 2007.
“The housing market nationwide is very strong, and it continues to be strong,” Kinsey said. “We’re finding out that millennials really do want to own homes.”
According to the National Association of Home Builders (NAHB), year-to-date, single-family starts are 8.7 percent above their level over the same period last year. Single-family production rose 5.3 percent in November to a seasonally adjusted annual rate of 930,000, which also is the highest post-recession report.
“The strong November reading indicates that builders are continuing to increase single-family production to meet growing demand for housing,” NAHB Chief Economist Robert Dietz said in a release. “With low unemployment and increasing owner-occupied household formation, single-family starts should continue to make gains in 2018.”
For the county, many new developments either just started selling in the second half of this year or are about to start in 2018. Just on C.R. 210 between the interstate and U.S. 1, Beachwalk, Beacon Lake and Creekside at Twin Creeks are all new developments representing more than 2,500 potential homes.
And they will be joining established but growing developments like Nocatee, RiverTown and Shearwater, among others, in the northern half of the county.
There’s also growing activity in World Golf Village, all along State Road 16 and south along U.S. 1, State Road 207 and State Road 206.
Kinsey admitted it’s a great time for a developer to have a product ready to sell. But he added that it’s important to have something that sets a community apart from the competition, especially since his project calls for homes from the high $300,000s to the $800,000s.
That’s why he took the chance building the Crystal Lagoon.
“People that are buying an $800,000 house are usually looking for higher level of amenity,” Kinsey said. “We think it’s really cool to have this amenity coming to market at the same time that we’re bringing this to (St. Johns County) instead of anyplace else in the country.
“It’s one of the best housing markets in the country, and we’re bringing it the most unique amenity that anyone’s ever seen.”
