Sub­di­vi­sion de­mand has builder in a bullish mood

Street­man gets strong re­sponse to reser­va­tion strat­egy for new homes.

Austin American-Statesman - - BUSINESS - Brian Magier­ski, founder and CEO of Ap­p­con­omy. By Shonda No­vak sno­vak@states­ Hous­ing

It might have only 22 lots, but Street­man Homes says its Barstow Court sub­di­vi­sion in south­west Austin is in­dica­tive of the strong hous­ing de­mand in the Austin area amid a tight sup­ply of homes for sale.

The Austin-based home­builder was flooded with calls when it posted a sign in Oc­to­ber an­nounc­ing homes were coming soon — with prices start­ing in the mid$200,000s — at the com­mu­nity at Barstow Av­enue and Slaugh­ter Lane in Cir­cle C North, says Ryan Jack­son, Street­man’s vice pres­i­dent of sales and mar­ket­ing. Be­fore long, the list had grown to 104 in­ter­ested buy­ers, he said.

That’s when Street­man de­cided on an un­con­ven­tional sell­ing strat­egy: It would take reser­va­tions on a first­come, first served ba­sis, with a $1,000 re­fund­able de­posit that let prospec­tive buy­ers re­serve a spot in a home-site se­lec­tion process that would take place in De­cem­ber.

About 30 peo­ple showed up for the reser­va­tions meet­ing on the morn­ing of Oct. 20, Jack­son said.

“We walked out with 26 peo­ple signed up for reser­va­tions,” Jack­son said. “Since then, it’s up to 39.”

Jack­son said the first round of buy­ers have made their home se­lec­tion and con­verted their reser­va­tion de­posit into earnest money for a home pur­chase. Con­struc­tion is due to start on the first homes in late Jan­uary or early Fe­bru­ary. An­other 30 peo­ple have placed de­posits to earn a chance at re­serv­ing one of the re­main­ing 16 lots.

Jack­son said Barstow Court is a mi­cro­cosm of the hous­ing de­mand in the Austin mar­ket over­all, as well as for homes in the price range Street­man plans to build in Barstow Court. The devel­op­ment will be part of the Cir­cle C sub­di­vi­sion, where more than 4,000 homes have been built to date.

“It just think it kind of tells the story that if you have great home sites and a great lo­ca­tion, there’s a great deal of de­mand for that,” Jack­son said. “This year has been just in­cred­i­ble as far as the amount

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