Cornerstone News - January 2009 Newsletter
1/5/2009
Happy New Year!
All of us at Cornerstone Development hope your and your family and friends had a very happy holiday season!
2008 has posed multiple challenges to us all. As builders, we are faced with a market with declining sales across the board. However; in an effort to maintain a positive attitude during these times, we took a fact based approach to evaluating the year 2008 in sales. Here are some bright spots we discovered and would like to share with you. 1. Interest rates are at an all time historical low. These lower rates allow buyers to purchase much more house for their hard earned money and pay significantly less, cumulatively, during the time of ownership…they won’t be around forever. 2. The Federal Government has initiated a $7,500 tax credit for many buyers…whether you’re single or a couple. Although you pay back this tax credit, interest free, over a 15 year period, the credit is tax free. Check with your accountant regarding your eligibility. 3. Although housing/condominium sales are down in units measured, we are not experiencing a significant drop in the average price per square foot in the central corridor. According to the Simon Center for Real Estate Studies at St. Louis University, a careful review of our local market confirms that the eye-popping declines in value are largely confined to the California, Nevada, Florida, and Phoenix markets. Declines in the Midwest have been in the single digit range, not the 25-40% as in these other markets. 4. This market has pushed us to think outside the box. Beginning mid-January of 2009 we are going to roll out our "Get Your Best Deal Now" program. This exciting new program will afford the opportunity for many people to purchase new homes at today’s prices with today’s very low interest rates with little out of pocket cash. Watch our website as we launch this innovative sales program in 2009!
With respect to our developments, we are fortunate that we had a viable year considering the volatility in the market place. The gross sales volume reached over $7,000,000 in 2008 just for our projects. Our Forest Court Walk project actually lead sales in the Clayton market in its price band of $250,000 to $300,000…impressive!
We have exciting plans for 2009 beginning with our completely rehabbed 2 bedroom, 2 bath condominiums on Westwood in the Moorlands neighborhood. These historical buildings will comprise 12 condominiums featuring hardwood floors, granite countertops, new kitchens & baths…with an unbeatable location, just a ½ block south of Wydown on Westwood…these will surely sell as fast as our Forest Court Walk project. Check our website for more information and the "Grand Opening" date.
In addition, we are completely rehabbing a building in the Clayshire neighborhood of Clayton, just North of Clayton Rd. (behind Linens & Things), within easy walking distance of the Galleria Mall and the Promenade. These condominiums are completely new on the inside with modern kitchens, granite counter tops, updated baths, hardwood floors…plus a garage. We have our new model currently open for viewing…as well as for sale at the very reasonable price of $209,900. We anticipate delivering the remaining 6 residences in the summer of 2009. It’s not too late to make your own selections. More about the Whitburn Condominiums can be found on our website at www.cornerstone-stl.com
Our project in Webster Groves, The Providence Condominiums, has already achieved pre-sales in excess of 25%...it won’t be long till we break ground! Being our first project in Webster Groves, we are all very pleased with the warm reception and support we have found in the neighborhood.
In closing, we still have a couple of condominiums left for sale at Gas Light Square (Central West End) and Forest Court Commons (Clayton)….they both would make great homes for someone in 2009…talk about the gift that keeps on giving….!
We look forward to a healthy, wise and prosperous 2009!
All the Best,
Keith R. Manzer
Vice President – Sales & Marketing