Category Archives: Uncategorized

Demand is High, Supply is Lagging

By: Ron Austin, Sable Homes General Manager

The demand for homes is expanding in Michigan, however the construction of new homes has been lagging behind. Why is this? City officials note, “construction is about to come to an abrupt halt not for lack of demand –but lack of vacant lots” (Mlive). So then, the demand for homes is still there, but the infrastructure development is costly, and the availability of vacant lots is dwindling.

In Michigan, the cost of developing the sites is an obstacle for many home builders as the municipal requirements are expensive and require extensive permitting.  Home builders and developers are hesitant to jump into infrastructure for lots due to the lack of inventory as well as the risk involved with development.

The costs to build the housing infrastructure can vary. “At the local level, jurisdictions may charge permit, hook-up, and impact fees and establish development and construction standards that either directly increase costs to builders and developers, or cause delays that translate to higher costs” (NAHB).These higher costs translate into hesitation for new constructions and new developments that have the potential to provide more risk than reward.

There is a level of uncertainty involved with the home development market. This risk stems from “competition from sales of distressed existing properties, uncertainty about the health of the overall economy and labor markets, and difficulty in qualifying prospective buyers for mortgages” (NAHB).  However, developers are still interested, but they are paying close attention to commercial and job growth as well as trends in the housing market. The development investments must strike a balance between the cost of the investment, the current housing demand, and the existing government regulations.

Sable Homes took a gamble on the Central Park Property in Sparta, and the market was in our favor as 20 new homes were built on the property to serve the needs of the developing economy and bustling community. There is most certainly a risk that was tied in with the purchase and development of the Central Park Property, but with community ties and help from the village in purchasing the property the risk was well worth it.

 

Home Maintenance Tips

By Ron Austin, Sable Homes General Manager

Great, you have purchased your first home! Congratulations! Now is the time to keep up on your home maintenance on a routine schedule. This way your home stays up to date, up to code, and well maintained for future use.  Homes that lack proper up keeping end up being a bigger and bigger problem down the road. It is best to stay on top of your home care to nip any potential issues at the bud.

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Fire prevention tips help to save your home from a potential disaster. Remember to vacuum out the clothes dryer duct and replace HVAC filters to improve circulation. It is also very important to change the dryer lint screen after each use to prevent buildup which can cause fires. (Popular Mechanics). In terms of electrical, be sure to check your outlets to ensure that they use ground fault circuit interrupters. These devices shut off an electrical circuit at the point when they come a potential shock hazard (NFPA).

Outdoor maintenance is important in protecting the structure and the curb appeal of your home. Routinely check your roof for repair spots or water damage and remember to clean out clogged gutters. Gutters capture water and debris from your roof and drain it away from your home. When they get clogged water and gunk accumulates and can lead to water damage (Popular Mechanics)

Summer is a great time to check the exterior of your home for potential issues. Make sure to take a look at deck or patio to check for any deterioration or safety hazards. A great way to maintain your deck is to clean and seal each year to preserve the wood and appearance. (HFHAC). Also, remember to have your roof inspected by a licensed professional every few years to ensure that there are no leaks or water damages. (Travelers).

Making sure that you stay on top of seasonal home check ups and maintenance will prevent  future headaches that may arise out of poor home upkeep. Many of these tips are quick easy checks or fixes that take less than a weekend to do, and they most definitely will pay off in the long run.

 

Gamble on swapping park for homes paying dividends for Sparta

By Jeffrey Cunningham | jcunning@mlive.com 
Email the author
on July 21, 2015 at 5:09 PM

SPARTA — When the Sparta Village Council voted in July of 2013 to sell the former 4.46-acre Central Park property to developers for new homes, the thought was that it could take up to five years to fully build out the 20 lots.

Central Town Square .jpg

(This home at the corner of Union and Grove streets was built where home plate was in the baseball field of the former Central Park)

It was a gamble village leaders were willing to take at the time to get the stalled housing market moving in Sparta. It was also an opportunity to shed some of the excess property the village owned.

The gamble for the village has paid off. In less than two years, all of the 20 home sites have been sold and houses have been built on the sites.

Many of the new residents to Central Town Square, like Virginia Huffman, said the new homes on the former park were exactly what they were looking for.

The former Rockford resident said her family had been looking for homes in the Rockford area, but couldn’t find what they wanted. “We moved here because we found a home that we liked,” she said. “We knew the village and this is s good location for us.”

Built by Sable Homes of Rockford, the houses have sold for $135,000 to $180,000.

The village hasn’t quite recovered all of the $277,000 it invested in the property since it took ownership in 2009 from Sparta Public Schools, but village leaders say the investment has clearly paid off.

“This is a case where government could do things to help get a development like this built that private industry most likely couldn’t have gotten done,” said Sparta Village Manager Julius Suchy.

Sable Homes president John Bitely said that without the help from the village in the form of being able to purchase the property at below market value, he would not have been able to build the new homes.

The village bought the property in 2009 from Sparta Public Schools after the school district closed the former Central School.

It cost the village $145,000 to demolish the former school and grade the property. The village paid the school district an additional $100,000 in water credits for the property and with other costs associated with the purchase, Suchy said the village had an estimated $277,000 invested in the property.

The agreement with the school district was that if the land eventually sold for a profit, the village and the school district would share the proceeds.

The village sold the property in 2013 to Sable homes for $120,000, leaving the village with a net loss of $157,000.

As the 20 homes were built and hooked to the village’s water and sewer systems, the hookup fees netted the village $93,000, leaving the village $64,000 in the hole.

Fifteen of the 20 new homes were on the 2015 village property tax rolls, which netted the village another $18,000, leaving the village roughly $44,000 left before it had paid off its costs associated with the development.

With the five additional homes on the 2016 tax rolls, the village will take in at least $21,000 annually on the homes in the development.

“It will take another couple of years before we are in the black with this project from a development standpoint, but I think the village is already ahead as the stores and restaurants are already seeing an increase in traffic from having additional residents in the downtown area,” Suchy said.

Fed won’t raise rates yet, but hike could come later this year

Fed won’t raise rates yet, but hike could come later this year

by Ryan Smith | Apr 29, 2015

The Federal Reserve’s soft outlook on rate hikes today means business as usual in the mortgage bond market, according to Bryan McNee, vice president and senior bond analyst for MBSAuthority.com.

The Fed today said that with the housing recovery remaining slow and inflation running below its long-term objective, its current 0-one-quarter-percent target range for federal interest rates was still appropriate.

“The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term,” the Fed’s Open Market Committee wrote in a press release.

McNee said that the Fed will probably still raise rates sometime this year.

“The bond market already says the Fed is going to raise interest rates this year. It’s the people in the stock market who don’t think rates are going to rise,” McNee said. “But the bond market has very clearly got a bet that we’re going to see something around September.”

The Fed didn’t specify when rates would rise, however, meaning most bond traders will continue to prepare for a rate hike, McNee said. And since that rate hike is expected, it won’t have a catastrophic effect on mortgage rates.

“It’s not going to be a crazy shift if they do it, because some of it is already in pricing,” McNee said. “There’s no doomsday scenario here. Worst case scenario, it would cause us to move off of some of the best rates we’ve seen this year.”

The Fed’s soft stance on rates may not have come as a surprise to bond traders, but many took precautions prior to the agency’s statement, selling off mortgage-backed securities Monday and Tuesday in anticipation of a more hawkish stance.

“Yesterday, Fannie Mae mortgage-backed security benchmark coupons sold off 49 basis points,” McNee said. That’s a pretty big move lower.”

It’s especially unusual considering the relatively weak recent economic reports, he said.

“Rates usually get a little better on a weak economic basis. But the mortgage-backed securities market shrugged (the reports) off and lost almost 50 points. Mortgage-backed securities traders were taking some money out of the game because they were nervous about the Fed meeting.”

West Michigan home builders struggle with a labor shortage

WYOMING, MI – West Michigan home builders say they need more workers as life returns to an industry that was on the ropes just five years ago.

But finding young people who are willing to put in a hard day’s work on a job site is no easy task, according to members of a “Next Generation Committee” formed by the Home Builders Association of Greater Grand Rapids.

High school counselors are pushing students into college and at the college level, kids are not signing up for programs designed to put them in the construction industry, according to committee members who gathered on Tuesday, Oct. 8.

“We have the programs, but nobody’s going through the training,” said Duane McIntyre, a construction instructor at Grand Rapids Community College, where only five students have enrolled in the school’s residential construction program.

Meanwhile, building trades programs in local high schools are “a thing of the past,” said McIntyre.

John Bitely, president of Sable Homes, said high school guidance counselors are pushing students into college programs to meet “No Kid Left Behind” goals while he’s trying to find carpenters and laborers to fill his construction crews.

“If we do have someone who has drive and ambition, they’re told not to get into our industry. Some of these kids need to see that there are good positions out there,” said Bitely, who said his lead carpenters are paid $35 an hour.

Bitely said the home building industry faltered in its recruitment programs in recent years because the jobs were not available. “We’ve been in survival mode,” he said.

Dave VanBaren, president of Great Lakes Superior Walls of Hamilton, said his company has problems finding young people willing to work. “Basically, we say if you show up every day, you can move up in the company,” he said.

Ryan Nettesheim, a youth services coordinator for Bethany Christian Services, said they preach the same “just show up every day” lesson in their “Youth Build” program.

Nettesheim’s seven-month program helps low-income students between 18 and 24 earn their Graduate Equivalency Degree (GED) and gain construction skills while working on Habitat for Humanity homebuilding projects.

McIntyre said many of the students he sees have not been taught the importance of showing up for work every day at home.

“There’s definitely a work ethic problem out there,” McIntyre said. “If you want to find a root cause, it comes down to family.”

Jim Harger

View the article here : http://www.mlive.com/business/west-michigan/index.ssf/2013/10/west_michigan_home_builders_st.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+oak_business_review+(Oakland+Business+Review+-+MLive.com)

SABLE HOMES TO CELEBRATE $3 MILLION PROJECT IN SPARTA WITH GROUNDBREAKING ON NEW CENTRAL TOWN SQUARE NEIGHBORHOOD

Neighborhood to be housed on former site of Sparta’s Central School

Rockford based Sable Homes will break ground on a new neighborhood in the Village of Sparta, Central Town Square. The neighborhood, which is located in downtown Sparta near the intersections of North Union and Grove, and North Union and Alma, will feature 20 homes. According to the National Association of Home Builders’ statistics, the construction project will create more than 60 jobs in the Village of Sparta. The site of the project previously housed Sparta’s Central School, hence the name, Central Town Square.

Media is invited to attend the groundbreaking. John Bitely, president of Sable Homes, Martin Super, manager of the Village of Sparta, and Gordie Nelson, superintendent of Sparta Area Schools, will all be available for interviews.

Where: Sable Homes’ Central Town Square Housing Neighborhood
On Grove Street, Sparta, Mich. 49345

When: 10 a.m., Oct. 2, 2013

Who: John Bitely, president, Sable Homes
Martin Super, village manager, Sparta
Gordie Nelson, superintendent, Sparta Area Schools
Elizabeth Morse, DDA/Chamber director
Gary Hall, mortgage sales manager, Choice One Bank

Sable Homes to build 20 new homes to help spur Sparta’s economy

The community named the Sparta development ‘Central Town Square’ through social media polling.

SPARTA, Mich. – Rockford-based Sable Homes announced Thursday that construction on their newest development will begin in late September.

The land, located in the Village of Sparta near the intersection of North State and East Division, will feature 20 homes, along with a new model and housing design center which will help continue the economic growth in downtown Sparta.

“Recently, Sparta has seen substantial growth in the residential, commercial and industrial sectors,” said John Bitely, president of Sable Homes. “We want to help stimulate this growth by bringing families downtown and boosting the village economy.”

Sable Homes reached out to the community via Facebook and Twitter to solicit help naming its new development opening in downtown Sparta. After nearly a month of followers submitting ideas and voting for their favorite by “liking” other suggestions, the development was coined “Central Town Square.”

“By involving the community in the naming of this property, we’re able to help ensure this development reflects their spirit,” said Bitely. “We encouraged the community to suggest names that tied back into the former school as a way to preserve its memory and harken back to a place that played a profound role in the lives of many residents.”

The name Central Town Square provides a nostalgic connection to Sparta’s former Central School which once sat on the site of the development property. Other suggested names included, “Academy Square“, “Sable Central“, “Old School Center” and “Central Square.”

“We value infill in the village to achieve greater economies of scale for our services and in the end save tax payers money,” said Martin Super, Sparta Village Manager. “It’s a testament to our progress that Sable is investing here by building 20 new, quality homes right in downtown. This project will help facilitate our continued growth.”

Sable will begin the development with three homes and base the speed of construction for the rest of the development on the time it takes the homes to sell.

Sable Homes builds out foreclosed development

July 31, 2013| By David Czurak

Sable Homes has opened a new model home and design center as part of its plan to complete a foreclosed residential development northeast of Grand Rapids.

The Stone Crest development in Courtland Township is just west of 11 Mile Road and Young Street and not far from downtown Rockford.

It’s also one of a few new residential developments in the Rockford Public Schools District.

Sable Homes recently purchased the unfinished development out of foreclosure and began construction on new homes in June 2013.

“We’re excited that Sable Homes came in and picked up where the Stone Crest development project had stalled a few years back,” said Courtland Township Supervisor Chuck Porter. “We’re happy to welcome in our new neighbors and turn this development into the beautiful neighborhood it was meant to be.”

Porter said the partially built development will consist of 30 additional homes once it’s complete.

View Larger Map

The new Stone Crest model home is in Courtland Township, at 9309 Stone View Dr.

“Though the new model home in Stone Crest was built to enhance the sales experience in Stone Crest, it most certainly will be used by Sable’s staff to show what a fully furnished home will look like regardless of where the customer chooses to build their new home,” said Ron Austin, general manager, Sable Homes.

Sable Homes has priced the new Stone Crest homes from $180,000 to $260,000, depending on the lot and floor plan that are chosen.

Sable’s corporate sales and design center is located in Rockford, at 11575 Edgerton Ave.

Green space

Sable Homes President John Bitely made a $10,000 contribution to the Stone Crest Homeowners Association, which will use the money to finish a green-space project in the housing development the homebuilder is completing.

Bitely said his firm made the donation, in part, as an effort to be a good neighbor to those who already live in Stone Crest.

“And that is one of the reasons we are contributing to the green-space project and assisting with its completion. The project will surely benefit all individuals living in this neighborhood for years to come,” he said.

“It’s a great contribution in our efforts to promote a healthy environment and a beautiful place to live here in Courtland Township,” said Matt Wilson, vice president of the Stone Crest Homeowners Association.

Sable Homes also is building new public roads throughout Stone Crest and recently finished a one-mile stretch that the firm turned over to the Kent County Road Commission.

Sable Homes in Caledonia

Separately, Sable Homes donated $100,000 to Caledonia Community Public Schools in July.

The school system will use those dollars to improve access to its new athletic field.

The firm is building the Scotsmoor II housing development, which will have 51 new homes when finished, in Caledonia.

Check out the article here: http://www.grbj.com/articles/77472-sable-homes-builds-out-foreclosed-development

Sable Homes and Caledonia school district score deal

July 3, 2013 | By David Czurak | Grand Rapids Business Journal

Sable Homes of Grand Rapids has made a donation to Caledonia Community Schools that has saved the public school district $100,000.

Sable Homes is building its Scotsmoor II Housing Development in Caledonia, and the firm had recently purchased a piece of land out of foreclosure that it originally intended to add to the development.

Ralph E. Meyers Football Stadium

But Caledonia High School needed some property to service and provide access to its new Ralph E. Meyers Football Stadium.

So Sable Homes President John Bitely met with Caledonia Superintendent Randy Rodriguez to discuss the district’s property needs.

After a series of discussions, Bitely granted the school district a permanent easement across the firm’s recently acquired property, and Rodriguez noted the action saved the school district $100,000.

“We are thankful for the agreement that Sable Homes and John Bitely offered to Caledonia Community Schools. Bitely was willing to work with us, and he identified a solution that allowed the district to save money, while at the same time fulfilled the district’s need for service access to our beautiful stadium,” Rodriguez said.

In return, the school district granted Sable Homes the necessary easements for Scotsmoor II.

“It’s great that we are able to save the school district $100,000, while beginning what is shaping up to be a long-lasting relationship here in Caledonia,” said Bitely.

Bitely and Rodriguez signed the agreement when Sable opened its Scotsmoor II model home and housing design center in Caledonia Township.

Scotsmoor II

When completed, Scotsmoor II will offer 51 new homes, with prices expected to start at $164,500 for a three bedroom, two-bath home with 1,975 square feet of space.

http://www.grbj.com/articles/77248-sable-homes-and-caledonia-school-district-score-deal