PulteGroup Inc. (PHM - Free Report) intends to build a new active adult community, Sandhill Preserve in the Palmer Ranch community. The community would be constructed under its DiVosta Homes brand. The company recently acquired 111 lots in Palmer Ranch. The purchase marks the first phase of a potential purchase of 350 lots spread across 125 acres from Palmer Ranch Holdings, LTD.
The new community is located at the intersection of Central Sarasota Parkway and Honore Avenue and is expected to be open in early 2014. The new gated community will offer facilities like resort-style pool, clubhouse and a fitness center. Homebuyers will be offered various single-story plans with 2-4 bedrooms and 2-3 baths.
The rising demand for new homes has led to a favorable situation in the housing market, where inventory levels are dropping and prices are moving up. The company views Sarasota as a promising market with rising demand for DiVosta Homes.
The new community will expand the company’s presence in the lucrative market of Sarasota. The company had previously been successful in Sarasota with its active baby boomers community, The Isles on Palmer Ranch.
Majority of the home building companies are constructing increased number of new homes in order to maintain the required level of inventory to meet growing demand. Homebuilders like Pulte with significant land positions, broad geographic and product diversity and better capital positions are expected to benefit the most as market conditions improve. Pulte had earlier increased its authorized land and related development investment from $1.2 billion to $1.4 billion annually for 2013 and 2014.
PulteGroup currently carries a Zacks Rank #3 (Hold).
Other stocks in the homebuilding sector that are performing well and deserve a mention include D. R. Horton Inc. (DHI - Free Report) , Ryland Group Inc. and KB Home (KBH - Free Report) . While D.R Horton and Ryland carry a Zacks Rank #1 (Strong Buy), KB Home carries a Zacks Rank #2 (Buy).