For over 20 years the Oak Tree golf course in west Oakland Park has laid fallow. Years ago, Pulte, the home builder, acquired the property and began to plan a new homes development, Oak Tree. Pulte’s initial plan for the 139 acre site included over 800 homes. That plan was shot down by the City Commission and Pulte had to go back to the drawing board.
They came back with a newer and swankier development plan that include 405 homes and 50 acres of green space. 273 of the homes would be single family homes and 132 homes would be townhouses. All of the homes, including the townhouses, would be about 2000 square feet or larger. The community itself would be gated and include amenities that would offer residents a resort-style living experience. The entire project created much anticipation and interested buyers waited for the big announcement that sales would begin.
Pricing Released
Home Prices at Oak Tree Reflect Market Reality
In November I interviewed Bridjette A. Shelfo, Vice President of Sales for Pulte’s Southeast Florida Division and Jeremy Needleman, General Sales Manager for Southeast Florida for Pulte. I asked them about how the pricing at Oak Tree was determined. Needleman took point on the answer and began by explaining that a lot of it had to do with supply and demand.
He noted that in real estate a 6 month supply of homes was considered a balanced market. The greater Fort Lauderdale area, he said, had about 4 months supply, while Oakland Park only had about a 2 month supply of homes. In laymen’s terms what this means is that it is a Seller’s market and the Seller therefore can command the price because he has something that is in short supply but in great demand.
Needleman went on to explain prices in Oakland Park were up by 8% year-to-date and that in Fort Lauderdale they were up 21.5% year-to-date. Pulte’s prices and their corresponding increases, according to Needleman, were a reflection of the market and in fact, they are.
I have tracked the pricing at Oak Tree, which appears to go up every month or so, and have noticed the following since sales began. The Townhouses have gone up between 3.75% and 5.26%. Single family homes in the Manor and Classic series have gone up 6.25% to 7.55%. The largest increase has been in the Estate series with price increases between 12.03% and 12.46%.
Needleman concludes that considering the overall market, Oak Tree is attractively priced for what it offers and is one of the last and few great opportunities to buy new and affordable real estate in east Broward County. It is hard to disagree with this assertion when you consider that of the 47 homes that have already sold, 34 of them are single family homes and half of them are from the Estate collection, Oak Tree’s most expensive homes.
