Homearama kicks off: Economy driving appetite for custom built homes

Home number nine in the 2019 Homearama Touring Edition is located at 8738 Colton Court in Lebanon and built by HBS Development, Inc. The design, titled The Aurora, has more than 5,000 square feet of living space with generous windows in front and in back that includes a wooded view.   TY GREENLEES / STAFF

Home number nine in the 2019 Homearama Touring Edition is located at 8738 Colton Court in Lebanon and built by HBS Development, Inc. The design, titled The Aurora, has more than 5,000 square feet of living space with generous windows in front and in back that includes a wooded view. TY GREENLEES / STAFF

The economy’s growth in the Dayton area has helped increase home sales and driven up the demand for new custom homes and remodeling work for local construction companies.

Starting today, nine builders will showcase at Homearama the latest trends in custom building — a growing industry amid the healthy economy and s shortage of existing homes.

Houses at this year’s Dayton-area Homearama touring edition range from $150,000 to $965,000. Semi-custom and custom builders from the Dayton area built the houses to showcase the newest custom trends for local consumers planning to build a home or remodel.

Home theater area of home number nine in the 2019 Homearama Touring Edition is located at 8738 Colton Court in Lebanon and built by HBS Development, Inc. The design, titled The Aurora, has more than 5,000 square feet of living space with generous windows in front and in back that includes a wooded view.   TY GREENLEES / STAFF

icon to expand image

»RELATED: New local Old Navy store sets opening date

“At the end of the day, when you plan to build your own home, there’s not many things you do in life that are more intimate — where it’s your fingerprint, it’s your specific design — but also where you’re creating a space where your family is going to be raised, your family’s going to start traditions,” said Eric Farrell, executive director of the Dayton Home Builder’s Association

Farrell and others said custom and semi-custom building is a hot industry today.

More people are willing to spend on those custom upgrades now than they were in previous years, said John Peebles, a third generation owner of Peebles Homes, which will feature a $353,000 home in the 2019 Homearama. Peebles is a semi-custom builder that offers floor plans that customers can choose from and alter, as well as upgrades including countertops and bathroom style.

“They realize that things are good now and they’re wanting to get the things they want,” Peebles said. “A lot of people used to talk ‘we’ll save up and do it later,’ but I find a lot of people are actually spending that money on those additions and getting those countertop upgrades and back splashes.”

Home number nine in the 2019 Homearama Touring Edition is located at 8738 Colton Court in Lebanon and built by HBS Development, Inc. The design, titled The Aurora, has more than 5,000 square feet of living space with generous windows in front and in back that illuminate this great room,  where selections coordinator Kerry Coovert makes finishing touches for the home show.   TY GREENLEES / STAFF

icon to expand image

Peebles has also been adding square footage to homes, altering bedroom layouts, and in some cases eliminating whole bedrooms to make more space for a larger master bedroom closets and bathroom suites that isn’t common in price point beginning at about $270,000 Peebles offers. That wasn’t usual a few years back, he said.

“With the custom to semi-custom, I think it’s super healthy because of the amount of work everyone’s doing…everyone is maxed out with capacity,” Farrell said. “The same is true for our remodelers. They’re working seven days a week to get their projects done.”

»BIZ BEAT: Premier Health patient information may have been compromised

At the lowest price point, County Corp. is building a $150,000, three-bedroom home in the Wright Dunbar neighborhood in Dayton. The home is Energy Star certified and has a 96 percent efficient furnace and tankless on-demand hot water heater.

Child's bedroom of home number nine in the 2019 Homearama Touring Edition is located at 8738 Colton Court in Lebanon and built by HBS Development, Inc. The design, titled The Aurora, has more than 5,000 square feet of living space with generous windows in front and in back that includes a wooded view.   TY GREENLEES / STAFF

icon to expand image

The most expensive home by HBS Development Inc. is 5,103 square feet with four bedrooms, a master bathroom suite and closet, a lower level bar and card room.

In between homes include models by Clearcreek Custom Builders, Daniel DeVol Custom Builder Inc., G.A. White Homes, Justin Doyle Homes, Oberer Homes, Peebles Homes and Charles Simms Development.

“It’s really inspirational for people who come to see these homes in Homearama, whether they’re doing just interior decorating or kitchen remodels or looking to build. You get a first-hand look at some of the highest quality work in the area along with some of the best designs,” said Jeff Kelchner, owner of Clearcreek Custom Builders.

»BIZ BEAT: Golden Nugget gives upate on restaurant sale

Homearama is a major benefit to the communities of the Miami Valley because the touring edition shows all the area has to offer in different cities and townships, Farrell said. People driving around are also visiting restaurants and stores.

New builds like those featured on the tour can also benefit the communities in the tight inventory of the existing home market that has contributed to increasing median sales prices — which reached a record $170,000 in the Dayton area in June.

New homes mitigate price growth in a community by keeping buyers willing to spend different amounts of money from competing for the same homes, said Redfin chief economist Daryl Fairweather. That frees up existing inventory for the buyer able to afford less, and the buyer willing to pay more will be able to build or buy newer inventory.

Child's bedroom of home number nine in the 2019 Homearama Touring Edition is located at 8738 Colton Court in Lebanon and built by HBS Development, Inc. The design, titled The Aurora, has more than 5,000 square feet of living space with generous windows in front and in back that includes a wooded view.   TY GREENLEES / STAFF

icon to expand image

More inventory also means that home prices could avoid further growth, which means consumers won’t end up using a larger portion of their income to buy the same home, she said.

“Home prices are going up the most in affordable places like Dayton, but also Knoxville or Minneapolis, that are more affordable relative to coastal metros,” Fairweather said. “People in general are just looking at homes that are affordable.”

About 35 percent of searches for homes in the Dayton metro are coming from outside of the area, Fairweather said. Nationally about 25 percent of searches are from outside the metro. When people move from places like Washington, D.C. to Dayton, which is where the largest portion of searches outside of Dayton come from according to Redfin data, they’re willing to spend more, she said.

»BIZ BEAT: Hotel companies investing $6.5M in area city

“New construction is probably averaging $350,000 to $500,000 because we have an influx of people,” said Jan Leverett, president of the Dayton Realtors. “Our income levels of our people moving into the area are higher. Our IT jobs and our technical jobs, jobs with people coming in with contracts with Wright-Patterson, people with medical improvements here…people are buying the higher-priced homes because their salaries are higher and their styles of living are higher…The people moving in are smaller quantities but higher income — more white collar jobs.”

People are starting to move to the area because they recognize it as an attractive place to live again, said Fred Burkhardt, executive director of the Trotwood Community Improvement Corporation. Residents can get just about anywhere in Dayton’s immediate vicinity in 20 minutes, and there are jobs, competitive prices and things to do.

Prices are also on the rise in the Dayton area because people have invested in old homes bought during a down market and real estate was inexpensive, Leverett said. They’re now selling for more than they bought them for with upgrades and improvements accumulated over the years.

Median June prices were lowest in 2011, following the recession at $100,000. In 2005 the median home sold for $126,000 and a decade later in 2015 median home sales price was $127,000, according to Dayton Realtors records.

“They’ve improved them to the point of $40,000 to $50,000 more and improvements in the granite countertops and the wood floors. And the upgrades are bringing a higher demand and a higher price point, the value is higher,” Leverett said.

--


HOW TO GO

Tickets can be bought at area Kroger stores, online at daytonhomearama.com or in the Dayton Homearama app for $12. They will be $15 if purchased at the doors of one of the homes.

The show is open from 4 p.m. to 8 p.m. Monday through Thursday, 12 p.m. to 8 p.m. Friday and Saturday and 12 p.m. to 6 p.m. It begins Friday and runs through Aug. 11.

Visit daytonhomearama.com for more information and to find addresses for the homes.

--

FIVE FAST READS

Student debt still higher in Ohio than many other states

• Back-to-school shopping begins early as schools prepare for openings

• Dorothy Lane opening Killer Brownie manufacturing facility

• Farmers expect major crop yield losses after record planting delays

About the Author