Amid a decline in homebuilder confidence nationwide, there are signs of life in Chatham County — new townhomes filling in empty lots, multi-family apartment complexes springing up and a second wave of construction in planned communities such as Savannah Quarters in Pooler.
The Fairways, a gated community of upscale one-story homes within Savannah Quarters, is beginning its second phase of construction. CEO Frank Curran said he will build out the remaining land and add 36 homes, 15 of which have been pre-sold.
“Getting pre-sales in this industry has been, quite frankly, unheard of,” said Curran. “I was actually shocked that we were able to accomplish the number of pre-sales in here, (which) I didn’t think we could. So I made the decision that I’m going to complete everything.”
Curran said Savannah isn’t immune to national trends, but he had the persistence to hang on through the worst of it. He’s also fully invested — he lives in The Fairways, a quiet 20-acre suburb bordered by a blue lagoon and golf course.
The Fairways began as a second career for Curran, originally a partner in a large accounting firm in Ohio. He started the project around 2007, a case of “bad timing” in his words. In 2008, he had only pre-sold three homes, none of which came to fruition.
By 2009, things hadn’t improved much. He sold six homes that year and the next. Finally, in 2013, things started to turn around with 20 home sales.
“There’s very few developers that made it through, probably a handful,” said Curran. “Most of the small guys either went out of business or couldn’t build because, even today, the banks will not finance them.”
Curran credits his survival to the decision to buy out the bank’s share of the development in 2009, making him full owner. Other developers in the Quarters didn’t fare as well, according to Curran, with many banks taking over unfinished projects.
California-based developer Suncal, the new majority owner of Savannah Quarters, has promised amenity upgrades and roadway improvements to jumpstart development in other parts of the community.
Builder confidence
Nationally, though, things are not as peachy. U.S. housing starts sank 16 percent to 880,000 units in January, and a gauge of homebuilder confidence slipped to a nine-month low in February.
According to the National Association of Home Builders, the housing market index slipped from 56 in January to 46 in February, signaling a more sour view among builders about future home sales.
“The holidays and bad weather have kept people away, but traffic has been up over the last two weeks,” said Mark Bouy, president of the Savannah-area Home Builders Association and a principal of Bouy Brothers Builders.
Bouy said all indications are that this year will be the same or a little better than last year. Industry experts say the spring season is usually a better harbinger of what’s to come.
“That is the issue with the NHB’s builder confidence … you’re looking at a much broader picture,” said Mark Konter, owner of Konter Quality Homes. “Here locally, at least for us as a company and the sentiment we’re hearing from our compatriots, is that we’re seeing a more positive outlook.”
New homes put under contract in Chatham, Bryan and Effingham counties in 2013 totaled 849, the same as the previous year, according to data from the Savannah Multi-List Corporation. On the bright side, new homes put under contract in January rose year-over-year from 62 to 76, a 16 percent increase.
In Chatham, new homes hovered around 35, a seven-unit increase from December and only a few less than the year before.
“We anticipate 2014 to be an even better year than 2013,” said Konter.
As for Curran, he remains sunny on The Fairways prospects. The community, geared toward adults aged 55 and up, has new homeowners moving in this week and he hopes to sell the rest by year’s end.
Perhaps the clearest sign of a turnaround is that two banks have approached him about potential partnerships, an irony not lost on Curran.