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Builder optimism bodes well for Monterey housing market

24 Apr 2013 12:50 PM
Builder optimism bodes well for Monterey housing market

There are several metrics by which to measure the strength of a region's housing market - sales price, inventory, average time a house spends on the market - but few are as straightforward as builder optimism. When home builders feel confident enough to undertake ambitious construction projects, it is usually a strong sign that a given metro is in the midst of a housing market uptick.

This appears to be exactly the case for Monterey real estate, as at least one builder has shown confidence in the market by adding new high-end homes to the city's housing stock. According to the Monterey County Herald, Union Community Partners is planning on building 11 model homes by the end of April, which is just the beginning of a building process that will ultimately add 1,400 homes to the area.

The plans have been in the works for a while, but the firm's vice president, Jim Fletcher, told the source that he now believes the market is in the right position for the construction process to begin. 

"We believe the market is there," he said. "We believe in Monterey County and East Garrison and this project."

Once underway, the project is sure to change Monterey's housing market. The upscale homes will be between 1,500 and 2,900 square feet, according to the source, and be built in communities that feature parks, commercial ventures and town centers. 

Although the optimism demonstrated by Union Community Partners is encouraging, it is far from the only evidence that Monterey's housing market is in good shape. The luxury home market in particular has shown strong gains, as especially desirable regions of Monterey County have had a especially strong last few months. According to Trulia, the average listing price in Carmel has been rising lately, and began April at $2,351,608.