What Orlando Housing Market Slowdown? Builder Sets Lofty Goals

Engineered Homes isn’t worried about the recent slow-down in Florida housing market.

In fact, the Winter Park-based firm plans to build 400 homes this year, up from the 276 houses it built and sold last year for about $102.7 million.

It’s already off to a good start, kicking off sales this month for its 323-lot, $145 million Johns Lake Pointe subdivision in Winter Garden. The employee-owned real estate and development company sold two lots on the first day of pre-sales.

With homes starting at about $300,000 and a lushly landscaped entryway, the community will appeal to those Florida mortgage applicants eyeing fast-growing west Orange County, says Engineered Homes President and Chief Operating Officer Steve O’Dowd. Most other new home sites nearby are more expensive, he adds.

Engineered Homes expects to close on the purchase of the nearly 200-acre site by month’s end. It’s buying the developed site from Jacksonville housing market-based Retus Group. The home sites in Johns Lake Pointe will range from 50- to 85-foot lots. The community will feature a clubhouse, a pool, two tennis courts and a tot lot, along with several pocket parks and scenic overlooks.

Amenities aside, the good news for Engineered Homes is the fact that the Winter Garden community as a whole is doing well, notes Mike Bollhoefer, Winter Garden city manager. That’s why he believes Johns Lake Pointe should be successful despite the slower market. He adds, “Winter Garden is in better shape than most other communities because it’s the place to be.”

Other Engineered Homes communities include:

• The Preserve at Lake Charm, Oviedo: Sales began this month at the 85-home, $42.5 million gated community. Prices start in the mid-$400,000s.
• Hanover Place, Winter Springs: Sales also started this month for this 85-unit, $20 million gated town home project. Prices start at just below $200,000.
• Brighton Landings, Kissimmee: Models opened six weeks ago for this $69.7 million community, with 199 homes starting at $290,000.
• The Enclave, west Orange County: The $17 million community with 50 home lots in the Pine Hills area sold out in early April, six months after sales began. The average price was $350,000.

Setting the stage
However, there are potential challenges with such an aggressive building spree.

The Orlando Regional Realtor Association recently reported a 14-month inventory of existing homes at the current sales pace, and home sales have been slower during the past several months.

Despite those numbers, there are signs the market could be improving, says Bob Gosselin, a Realtor and co-owner of Gosselin Realty in Ocoee. While ORRA also reported the median sales price in March dropped $15,000 from the previous month to $240,000, Gosselin says another $5,000 to $7,000 decrease would bring out more Florida home loan buyers.

“The amount of calls we get has taken an uptick in the last couple months,” Gosselin says. “It’s certainly different from eight months ago, when we were sitting around playing Parcheesi.”