Silicon Valley Business Journal
From the article:
Make way for homebuilding.
After years in which rental projects in Silicon Valley were king, new-home construction has returned. Credit goes to a number of factors: low inventory, strong buyer demand and skyrocketing rents.
“We’re back in growth mode,” said Robert Freed, president and CEO of SummerHill Homes.
In Santa Clara County, existing single-family inventory totaled 1,169 units in January, down 57 percent from a year ago, according to MLSListings.com. Finished new-home inventory is also low, with about 1.4 months’ supply available at the end of 2012, according to industry tracker Metrostudy.
At the Boulevards in Santa Clara, SummerHill raised prices on new releases by $90,000 last week compared to a month ago. The community’s 36 homes are between 2,235 and 2,717 square feet and sell in the $1 million range.
“It’s a classic supply and demand,” Freed said. “I have 200 pre-qualified buyers for the Boulevards, and I only have 24 of them.”
San Ramon-based SummerHill was slated to close this week on a former Chevrolet dealership at 660–666 W. El Camino Real in Sunnyvale where it will build 103 townhomes, Freed said. He is also working with Grosvenor Americas to build nearly 200 residential units as part of the 20-acre “North 40” planning area in Los Gatos.