If you have been following my Blogs then I am sure that you all remember that prior to the “Great Recession,” all of the properties in Conestoga at Winchester Ranch were sold to homebuilders; the area was booming with two of the largest homebuilders in the U.S. having sales trailers on site; and they were ready to start model homes and they were actively marketing their projects. You have probably been wondering when, and or IF, the homebuilders would ever return. This posting will recap the past and catch you up on all the latest happenings!
In my previous Pulitzer worthy writings, I talked about the three major problems that faced this area we call Conestoga at Winchester Ranch.
Three problems that caused severe injury to those projects, which I lovingly refer to as the Phoenix:
1. The lack of major backbone infrastructure to the properties. Sewer, Water (potable and reclaimed) and Dry Utilities (electricity, phone and cable services).
2. The inability for all the public and private property owners to agree on how the infrastructure was to be funded.
3. Lastly, the decline in the economy which resulted in the “Great Recession.”
As I previously reported, the sewer along the south side of Salt Creek has been installed, see previous report entitled Out of the Ashes but now the low zone water line supplying the fresh water to the valley is also complete, The Missing Link! You may read Connecting the Missing Link for that update.
Dan Stephenson, Chairman and Founder of the Rancon Group, is always telling me that a picture is worth a thousand words, and he is so right. So we are extremely proud to present you with a video presentation of the ongoing work that is being accomplished at Conestoga.
Please click on the following video link and experience the Excitement of Conestoga at Winchester Ranch: Progress at Conestoga
Below is the progress chart of all the Improvements that are currently under construction. We are very excited that by the second quarter of 2017 all of the major infrastructure improvements will be completed!
Getting the Landowners on the Team
Rancon played the pied piper and has been meeting quarterly with all the property owners during the recession. I am extremely happy to report that we have had 100% participation by all of the other property owners in financing their fair share of these improvements. All of the property owners have come together realizing that together we can truly move mountains. That just leaves the economy!
Temecula and Murrieta continue to be heavily supply constrained and a huge lack of first time buyer inventory. French Valley continues to push along State Route 79 to the doorstep of Conestoga and too has a lack of entry level housing. Menifee, which incorporated in 2008 with 67,000 people, today it has over 86,000 and is currently growing at a pace of 7,200 people per year. Menifee is also supply constrained and entry level homes there start at $355,000. Still, home sales are at a steady pace with each tract selling a normalized four plus per month.
What does this mean for Conestoga? Conestoga is still the bullseye for homebuilder developments in what we believe to be the near future. So it is just a matter of time.
FHA Limits were recently raised to $379,500 making it much easier for a homebuilder to deliver a home and make a profit. By spring 2017, the area will have all the major infrastructure components required to build homes. Shopping and recreational amenities and parks are also now being planned. The economy is getting stronger and there is real pent up demand for the entry level buyer.
We truly believe 2017 is going to be a very good year for homebuilding. We are currently in negotiations with the first three homebuilders that will be under construction in 2017 at Conestoga at Winchester Ranch. Exciting times are on the horizon. Is it a bird? Is it a plane? No! It is a Phoenix!