Ask the Experts: The Stovall Team

Q. How does a nearby new development impact prices of existing properties in the same neighborhood?

A. Great question! Our neighborhood is experiencing this situation as building is slated for Summer/Fall 2014 on Fairwind by TRI Pointe Homes on the former site of Lamb School. Truewind by TRI Pointe Homes will be built on the former site of Wardlow School on Pioneer Street and Magnolia. Prices for the new homes are anticipated to start at $900,000 to $1 Millions. (More information about the development can be found at http://www.tripointelamb.com)

There is no hardfast rule on this but logic and our experience supports that development on nearby proper-ties make the whole neighborhood look better–even for those that re-main unchanged. If property in our neighborhood decides to remodel or add on, not only will the new homes in the area help support the additional square footage, the other homes in the area will also be worth more merely because more folks want to live in an “improved area.”

We saw this in Fountain Valley with the new Lyons Homes on Bushard and Slater, the KB homes off of Bushard and Heil, and the recently completed Solana Walk by Olson Homes on Brookhurst and the 405. In those neighborhoods several home that were super-improved for the neighborhood were able to use these new developments to either refinance or sell for more than they could have had the new homes of not been built. For owners in the Glen Mar homes, Glen Mar South homes, South Shore homes, and surrounding tracts this is a situation where in other areas the positives have outweighed the negatives.

Source: Micah Stovall, The Stovall Team