By Meghan Hall
Single-family developers continue to plough ahead with projects throughout the Puget Sound. In a recent transaction, Denver, Colo.-based Richmond American Homes joined the trend, nabbing an entitled piece of land in Gig Harbor for $15.75 million, according to public documents. The seller of the property was Bellevue-based North Creek Estates LLC, affiliated with Icon Real Estate services.
The transaction included eight lots of various sizes off of Burnham Drive NW. According to Richmond American Homes’ website, the site is the same as one of its newest planned developments, called North Creek Gig Harbor. The homes range in size from three to six bedrooms and are between 1,790 and 3,540 square feet. Base pricing begins in the $500,000s.
The community is not Richmond American Homes’ first in the Puget Sound; over the years, the developer has created about 20 communities across the region, including Forest Glen in Auburn and Pinedale Estates in Bothell. This year alone, Richmond American Homes has opened five communities in the Puget Sound and 91 communities across the country. Altogether, Richmond American Homes has developed more than 210,00 single-family homes over its 40 years in business.
Richmond American Homes hasn’t been the only developer buying up land, either. In a transaction that closed last week, Pulte spent $11 million for a Bel-Red property entitled for a new, 31-unit townhome development. In Bothell, Polygon Homes, affiliated with Taylor Morrison, purchased a former Seattle Times manufacturing site for $11.7 million. There, Polygon is planning to develop 94 townhomes.
Demand for single-family homes has only increased as a result of the coronavirus pandemic, and housing prices across the Puget Sound—and the United States— continue to appreciate. A recent report by Redfin indicated pending sales were up 20 percent, while home prices were up 11 percent. Upward pressure on home prices is likely to continue in the coming months, due to a general shortage of homes in the market and eagerness on behalf of buyers.