2 minute readReal estate and proverbs go hand in glove. Often, it’s said in false modesty, “You have to be lucky to be good” in the game of timing when to lean in and when to sit out and when to sell out.
What may be said less frequently but is equally true is the proverb’s inverse:
Strategy: On Operating Footprint
Jim Brickman, CEO and Co-Founder
Job growth in our markets is the best in the nation. Dallas added 235,000 jobs in 2022, Atlanta added 126,000 jobs. As shown on Slide 5, an estimated 3 million additional millennials and Gen Z will age into the prime home buying age in the next decade. We believe this will indicate there are significant spend pent-up demand from ready buyers who will purchase as mortgage rates stabilize. Green Brick is well-positioned for a market rebound with a high-quality land pipeline. We expect to have approximately 6,000 finished lots at the end of 2023, with 75% of these slots located and into locations.”
Strategy: Product And Submarkets
Jim Brickman, CEO and Co-Founder
Green Brick is well-positioned for a market rebound with a high-quality land pipeline. We expect to have approximately 6,000 finished lots at the end of 2023, with 75% of these lots located and infill locations.
We believe these advantages are: first, a significant footprint in infill locations in markets with some of the strongest job growth and demographic fundamentals. A superior and disciplined land and lot pipeline to support long-term growth. A broad spectrum of product types and price points that capture entry level, move up, move down, and luxury home buyers.”
Execution: Pricing and Pace
Jed Dolson – Chief Operating Officer
Trophy Signature Homes, in particular, fared better in terms of sales during the fourth quarter. Shares of total Green Brick net sales from Trophy increased to 49% by volume in the fourth quarter from 39% at the end of the second quarter when mortgage rates started to take off. We believe this is ascribed to three reasons.
First, Trophy’s business is designed to be efficient and spec heavy and many homebuyers today favor move-in ready homes with a streamlined home-buying process. Second, Trophy offers more affordable products that cater to entry-level on first-time move-up buyers. We believe these homebuyers represent a deeper pool of potential customers.
Third, Trophy’s homes come with design features that are appealing to the younger generation at affordable prices. For example, all of Trophy’s homes include spray foam insulation, which produces an air pipe envelope that insulates homes better. This encapsulation brings greener and more efficient homes to homeowners at a low cost that will continue to generate energy savings for years to come.
We believe that through this product desirability, operational efficiency and scalability, Trophy will continue to capture unmet demand from entry-level and first-time move-up homebuyers and fuel Green Brick’s growth strategy.
Are they good because they’re lucky, or lucky because they’re good?
The answer’s yes.
