Bella Terra, Palencia’s newest neighborhood, features four fully furnished and gorgeously designed models, representing the new European Collection by ICI Homes. The collection offers a variety of fresh home designs with several different elevations for each, ranging from 2,155- to 3,969-square feet. Bella Terra is within walking distance to the 18-hole championship golf course, tennis courts, pool, fitness center, clubhouse and other world-class amenities available in the award-winning community of Palencia in St. Augustine, Florida.

When I asked Don how he was feeling about the market,  he shared he believes new construction prices have bottomed out and are starting to go up slightly. He said new construction will not go lower and he predicts that construction costs will rise at least 10% by the end of 2010. Many consumers must agree because there has been an increase in sales activity. ICI sold 10 homes in January – and six of them were new builds with an average price of $500,000. This means ICI sold more new builds in January 2010 than they did in all of 2009!

Building stunning homes between $400,000 and $1,000,000 is probably what ICI is most well known for; however, when the market became more challenging in 2006 and 2007, ICI added a new product to their offerings. They introduced affordable homes starting in the mid $100,000s.  

Don said he is seeing a lot of activity in this price range too. He mentioned they had three pre-sales in Highland Glen the week before I stopped by. And in some of their other entry level communities, like Victoria Lakes and Tidewater, they only have one or two homes left.

He attributes alot of this activity to prices being about 25% less than they were in 2006, which makes a new home cost about the same as it did in 2003. However, the building codes and technology have vastly improved since then, so homebuyers are getting a stronger, healthier, more efficient home for a 2003 price. When he put it that way, I’m not surprised people are eager to buy a new home right now!

Although I always want to get Don’s perspective on the real estate market, I also love to just chat with him because he is genuinely a good guy. As many of you already know, he is very involved in mentoring and teaching young people. In fact, among the many awards he has recieved is the “Dick Baker Memorial Award” from NEFBA for humanitarian service. He believes in empowering people and giving deserving individuals a second chance. So, I felt extremely fortunate to have the opportunity to talk with such a generous man, who is also a leader of our industry - especially since he was sharing positive industry news!