The summer months proved to be positive ones for Rancho Sahuarita; both in its growth and development of new lifestyle offerings, and in its sales and market activity. Overall, the housing market of the greater Tucson area continues to improve; albeit conservatively.
Rancho Sahuarita’s two active community homebuilders, Richmond American Homes and KB Home, experienced a strong summer for both prospective buyer traffic and sales. Richmond American, which only has a few homes available (as of the middle of August), has been a mainstay in the Rancho Sahuarita community; building homes in the master plan since its inception. KB Home, which opened its newest community in the northern region of Rancho Sahuarita, Presidio Porvenir, in spring of 2014, also had a strong summer, and will sell out in coming months.
Much of the prospective buyer traffic has been comprised of various sources, including families being relocated for employment, local military families looking for a lifestyle similar to what they would experiences living on Davis-Monthan Air Force Base, and current owners and renters looking to move into a new home.
The community has also experienced an encouraging selling season in terms of existing homes. Resales listings are at 145 as of the end of July 2016, which is down 5% from the same time last year. Even more positive, sales of distressed homes, like foreclosures, are down to a normal level of 12.8%.
This positive market has led to a decreased inventory and supply of new build homes, which historically has always been the primary driver of growth in the community. With both new home builders nearing close out, and the supply of improved lots absorbed; the team at the Rancho Sahuarita Management Company (RSMC) is currently in talks with multiple builders, to develop new neighborhoods in Rancho Sahuarita.
Ted Herman, Vice President of Land and Commercial Assets for RSMC, spoke of the current market conditions saying, “The Tucson housing market has seen a strong 2016 to date, posting positive year over year gains in both resale and new home sales volumes. New home closings have jumped 18%, resale closings by 14% through June (Source: Orange Reports- The Southern AZ Housing Market Letter, 7/18/16).”
He continued: “Not surprisingly, most industry professionals point to job growth as the link to this increased demand. Annual employment growth has jumped from sub 1% over the past few years to 3.6% through May. We continue to see increased builder interest in our next two subdivisions we are currently working to bring to market at Rancho Sahuarita. Entrada del Rio and Entrada la Villita will include approximately 600 lots that will support a variety of builder housing product.”
Entrada La Villita is anticipated to be developed first. It is located along La Villita Road, southwest of the Rancho Sahuarita Clubhouse. Approximately 71 lots are planned for that development, plans for which will be announced once they are under official contract with a specific homebuilder.