J Stephens
Beach Comber
I noticed a fair amount of new construction in Rosemary Beach this year and thought I would run some numbers to see the difference between resale prices and building a new home.
Construction of new homes has begun to pick up again in 2012. In order to determine the prices for these newly constructed homes, the numbers need to be broken down. In order to do this, the cost of a lot can be compared to the size of an average house that has been built in Rosemary Beach. Since the average size of a home in Rosemary Beach is 3,000 square feet, the price of a lot should be divided by 3,000 in order to determine the price per square foot.
As it is in most any market, the location of a home or building can increase the market value. This is the same case in Rosemary Beach where the prices of the lots have been increasing. This is primarily due to supply and demand. There has been a limited amount of lots for sale, but the demand has increased.
A Lot on the north side of 30A in Rosemary Beach has a market value of approximately $275,000. To determine the average cost per square foot, you would divide $275,000 by the average square footage of 3,000. This would give you a value of approximately $92 per square foot. On the south side of 30A, the market value is approximately $500,000. Again dividing this number by the average of 3,000 square feet, the approximate value per square foot would be $167. A gulf view lot within Rosemary Beach is valued at approximately $750,000. Dividing this by 3,000 square feet gives these lots a value of approximately $250 per square foot. There are currently no Rosemary Beach lots available on the Gulf.
When trying to determine the price of a lot, there are other factors that may be taken into consideration as well. An example of one factor would be potential penalties for build out time. But in order to keep this simple, these other factors will not be discussed.
In order to have a home built, it will cost more than just the price of the lot itself. There is also the cost of constructing a home in Rosemary Beach, which typically ranges from $250 to $400 per square foot. This is a large range in the cost, but the actual cost will depend on the upgrades and special features. Some houses can cost even more than $400 per square foot. In order to easily explain these costs $300 per square foot will be used to demonstrate the cost of constructing a home in the different areas of Rosemary Beach.
The approximate breakdown of costs per square foot are:
Within the past twelve months, there have been twenty Rosemary Beach homes for sale that sold on the north side of 30A in Rosemary Beach. The average price that these homes sold for was $383 per square foot. In looking at the previous demonstration of construction costs, a house on the north side of 30A would cost approximately $392 to build. These houses are now being resold for approximately $383 per square foot.
During this same time period, there were eleven houses that sold for an average of $484 per square foot on the south side of 30A in Rosemary Beach. The demonstration showed the approximate cost of construction at $467 per square foot and the resale is now at approximately $484 per square foot. There were also four homes with a Gulf View in Rosemary Beach that sold for an average of $804 per square foot. These homes have a construction cost of $550 per square foot and now a resale amount of $804 per square foot. There have also been three homes in Rosemary Beach on the Gulf that sold with an average price of $1,156 per square foot.
These price comparisons show that the resale price and the cost of building Rosemary Beach real estate are roughly equal. This has helped to increase the amount of homes being constructed in 2012.
Construction of new homes has begun to pick up again in 2012. In order to determine the prices for these newly constructed homes, the numbers need to be broken down. In order to do this, the cost of a lot can be compared to the size of an average house that has been built in Rosemary Beach. Since the average size of a home in Rosemary Beach is 3,000 square feet, the price of a lot should be divided by 3,000 in order to determine the price per square foot.
As it is in most any market, the location of a home or building can increase the market value. This is the same case in Rosemary Beach where the prices of the lots have been increasing. This is primarily due to supply and demand. There has been a limited amount of lots for sale, but the demand has increased.
A Lot on the north side of 30A in Rosemary Beach has a market value of approximately $275,000. To determine the average cost per square foot, you would divide $275,000 by the average square footage of 3,000. This would give you a value of approximately $92 per square foot. On the south side of 30A, the market value is approximately $500,000. Again dividing this number by the average of 3,000 square feet, the approximate value per square foot would be $167. A gulf view lot within Rosemary Beach is valued at approximately $750,000. Dividing this by 3,000 square feet gives these lots a value of approximately $250 per square foot. There are currently no Rosemary Beach lots available on the Gulf.
When trying to determine the price of a lot, there are other factors that may be taken into consideration as well. An example of one factor would be potential penalties for build out time. But in order to keep this simple, these other factors will not be discussed.
In order to have a home built, it will cost more than just the price of the lot itself. There is also the cost of constructing a home in Rosemary Beach, which typically ranges from $250 to $400 per square foot. This is a large range in the cost, but the actual cost will depend on the upgrades and special features. Some houses can cost even more than $400 per square foot. In order to easily explain these costs $300 per square foot will be used to demonstrate the cost of constructing a home in the different areas of Rosemary Beach.
The approximate breakdown of costs per square foot are:
- North side of 30A: $92 + $300 = $392 per square foot.
- South side of 30A: $167 + $300 = $467 per square foot.
- Gulf View: $250 + $300 = $550 per square foot.
Within the past twelve months, there have been twenty Rosemary Beach homes for sale that sold on the north side of 30A in Rosemary Beach. The average price that these homes sold for was $383 per square foot. In looking at the previous demonstration of construction costs, a house on the north side of 30A would cost approximately $392 to build. These houses are now being resold for approximately $383 per square foot.
During this same time period, there were eleven houses that sold for an average of $484 per square foot on the south side of 30A in Rosemary Beach. The demonstration showed the approximate cost of construction at $467 per square foot and the resale is now at approximately $484 per square foot. There were also four homes with a Gulf View in Rosemary Beach that sold for an average of $804 per square foot. These homes have a construction cost of $550 per square foot and now a resale amount of $804 per square foot. There have also been three homes in Rosemary Beach on the Gulf that sold with an average price of $1,156 per square foot.
These price comparisons show that the resale price and the cost of building Rosemary Beach real estate are roughly equal. This has helped to increase the amount of homes being constructed in 2012.