Adam Smith, widely considered to be the father of modern economics, espouses the theory that when supply is low and demand is high, the price of goods will rise. At the new Pulte development in west Oakland Park the invisible hand of this very economic theory can clearly be discerned.
New Homes Sales at Oak Tree Take Off
Pulte inaugurated sales for this community at the end of July. Starting on July 20th prospective residents of Oak Tree began meeting with sales representative. The meetings were held at Parkview in Hollywood or The Fields in Lake Worth (built by DiVosta a Pulte company). At these meeting buyers had the opportunity to see a map of the development and the home sites that were available for reservation. Within 2 days Pulte took 8 reservations for home sites, 7 of which were the largest and most expensive lots.
Home Prices at Oak Tree
When Pulte first published its pricing for Oak Tree consumers had many reactions. Many were shocked at how high the base price of homes were. When the base price and the home site premium (cost of the land) was added single family homes at Oak Tree easily cost $500K or more, actually much more depending on the options chosen by the buyers.
Despite the perceived high prices by some consumers demand for the homes was very strong. In fact, the demand was so strong that Pulte closed VIP reservations early in order to start writing and executing sales contracts. The high demand for houses also led to a rise in prices which was published last week.
Prices for Homes At Oak Tree Go Up
Pulte raised the prices on 11 of the 12 homes it is selling at Oak Tree. The Seacrest townhouse model was the only one whose price remained the same. On all the other houses the price rose anywhere from 0.25% to over 5% last week.
The lowest price hikes were in the townhouses and the Manor and Classic collections. The townhouses for 0.25% and the Manor and Classic collections rose between 1% and almost 2%. The most significant rise occurred in the homes in the Estates Collection. The Estate Collection homes are the Reverence, the Stardom and the Stellar. The price of each of those rose over 5% or translated into dollar amounts $30,000.
The demand for the single family homes that Pulte is building at Oak Tree is high despite the perception by some consumers that they were too high. Broward County in general has a large demand for homes and there simply are not enough supply to meet the demand. Oak Tree offers large, nice, comfortable homes in a resort style community centrally located in the heart of greater Fort Lauderdale. This combination is not easy to find in eastern Broward County and as a result the demand is high and the prices are rising in accord with the demand.
If you are interested in learning more about Oak Tree, click here: https://fortlauderdaleflorida.realestate/vip-oak-tree/
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