Increased market penetration key to
Sun, Jun 12, 2011
The company made a serious commitment to growth in the 2009-2010 period when it contracted to develop 2 major new subdivisions while their competitors dallied. And thus far in 2011 that faith in the ongoing housing demand for the immediate Tri-Cities area has repaid Varsity for its risk, as both South Richland and West Richland have sold at a torrid pace.
Varsity’s sales manager and owner/broker of Smart Realtors Jeff Smart explained that the best rate of absorption- sales rate- that builders have come to expect in Tri-Cities is 1 per month. Yet, in the two subdivisions of Keene Road Estates in South Richland and Collins Ridge in West Richland that rate increased to 2 per month. “The reasons for that sales rate are several,” explains Smart. “There’s an inherently steady demand for housing, the sites reflect excellent locations where people want to live, the Oasis Neighborhood concept has had its effect, the company offers sufficient diversification to appeal to a broad range of buyer, and interest rates have remained at historic lows,” he said.
The financials, although still showing an improvement over 2010 closings that themselves dwarfed 2009 performance, don’t reflect the surge of sales that began immediately once the new projects reached final plat recording status in May. “Closings were just mediocre as far as I’m concerned,” intoned Smart. “But judge the business over the course of the year- then all will see stellar closings performance from July through December,” he assured.
Designated Broker at Smart Realtors