Marty Gillespie is president of Heartland Homes, a custom home
builder with more than
30 communities in Allegheny, Butler and Washington counties.
Staff writer Gretchen McKay
interviewed him about local real estate trends in new
construction.
Home building permits were down
locally by nearly 40 percent in
the first quarter
compared
with the first quarter of last
year.
How has that affected
Heartland Homes?
Our permits for the first
quarter of 2009 were actually up
10 percent, which I think is due
to a combination of several
things. Our communities are in
good locations, with some of the
top school districts in
Pittsburgh. In addition, our
product is different. Home
building is an old industry,
where many are building houses
the way they always did. We try
to stay on the cutting edge with
design and technology by
including things like
energy-efficient appliances,
video surveillance, home
theaters and high-tech security
systems.
We also just came out with a
new architectural style, the
Craftsman, which has proved very
popular. And we have a sales
force and production group
that's done a good job in a
tough market getting people the
houses they want. Traffic to our
models is the same as last year,
or about 20 percent more than in
2007.
How does today's new
home market compare to the
market a year ago??
There's some very good
opportunities right now for
people looking at building or
buying a home because mortgage
rates are low. Also, while
prices in the rest of the nation
are significantly down, our
prices are actually about 2
percent higher than last year.
So the Pittsburgh market, across
the board, has really maintained
its value. Prices will
eventually go up quickly down
the road in places like D.C.,
Tampa and Phoenix, and once that
starts there will be a trend.
The timing is good, then, for
people in the market right now.
What part of our region
has the strongest new
construction sales right now??
We've been pretty balanced
with sales in the north, south
and west, though each region
tends to appeal to a different
buyer. The north, for instance,
because it's a growing area with
a lot of new businesses, is very
popular for relocation. People
who buy in the South Hills,
conversely, are largely from the
South Hills. They don't tend to
move to other regions.
Are you offering any
special incentives to buyers
right now?w?
At Heartland, we do it a little
differently. We don't just
discount prices because we want
to maintain values in the
neighborhood. Instead, we offer
different promotions each month
that add value to the houses,
things like hardwood floors or
fireplaces or granite
countertops. That way, pricing
isn't all over the place. The
house is a sound investment.
What amenities are new
home buyers especially looking
for? What's passe?
Hardwood has been very popular
the last five years, along with
granite countertops. We're also
seeing demand for morning and
sun rooms and an extra bedroom
over the garage. The footprint
might be smaller, but adding a
bonus room on the house gives it
more character. Some people are
also opting for third-floor
finished areas in the attic.
Buyers aren't so focused on pure
square footage anymore; rather,
they're taking into
consideration the livability and
energy efficiency of a home. I
think that trend will continue.
What are the benefits of
new construction versus older
houses??
The biggest benefit to building
a house is that you're going to
get what you want right when you
move in.
If you buy an
existing home, you'll probably
spend a lot of money -- and time
-- the first year on new
carpeting, redoing the kitchen,
painting, etc., to make it your
own. New construction allows you
to build exactly what your want,
from day one. You won't have to
put additional, significant
money into it.Also, mortgage
programs on new construction are
typically a little better than
on existing homes, which gives
you a little more buying power.
And historically, the
appreciation of homes is
greatest during the first five
to seven years of the house's
life. After that, it plateaus a
little more.
The cost of ownership is
definitely less in a new home.
We did in-house calculations
last year and found on average,
new homes are on average 30 to
35 percent more energy efficient
than a home built 10 years ago.
Any tips for someone
thinking about buying or
building a new house??
Do as much research as possible.
When people buy a new
automobile, they compare car to
car to car. But when they're
looking at houses, surprisingly
enough it's more about
superficial things rather than
the quality of construction and
energy efficiency. Do the
research and make sure you know
what you're paying for. It's the
biggest investment of your life.
RealTalk is a Q&A with
experts in western
Pennsylvania real estate.
The column appears every
other week in Sunday Real
Estate NOW.
To suggest a
subject or for more
information,
contact
Kevin Kirkland
kkirkland@post-gazette.comm or
412-263-1978.
First published on April 25,
2009 at 12:00 am
