Arundel Court Interest Buyers

The lot that once housed the home of Roy Orbison's widow is being transformed into small subdivision of English Country-style homes. And although only two of the eight lots in the new neighborhood, Arundel Court, have sold, Castle Contractors owner Alan Looney said while the market may have slowed, the flow of potential buyers hasn't.

"Smart investors understand it is an incredible time to build a home due to lower material and labor costs, as well as very low interest rates," Looney said. "Labor costs are really competitive right now. Lumber is at historic lows, hardwood flooring is lower, roofing has better prices. The suppliers have been willing to provide some price breaks, and that may be due to them getting some concessions from their manufacturer.

"Six months to a year from now, when home inventories are low, inflation will occur when people start to build and prices will go back up. I feel it really is by far the best time to build."

And for some, there's a big draw to build a large house on a small lot. Homes in Arundel Court average 4,000 square feet.

"Many of the potential buyers are downsizing from larger homes and like the smaller floor plans," said Worth Properties Realtor Laura Baugh, who's handling home sales. "Two of the custom buyers both were coming from larger homes, one a couple who are empty nesters, retired and wanting a smaller home, and the other a family of four wanting the convenience of the Green Hills location.

"The smaller lot sizes do not work for every buyer, but most buyers who want the Green Hills location understand that the land cost in the area is greater than locations further from Green Hills. The common area offers homeowners nice-sized backyards. It is often a trade off for a buyer as to the convenience of location and lot size in many instances."

Since Looney purchased the property in fall 2007, two buyers have come forward. One bought a 4,988-square foot house, the other a 4,601-square-foot house ranging from $1,550,000 to $1,575,000.

Looney said while the people who will buy these homes aren't necessarily affected by the economy, they are more mindful of their lifestyle.

"I think (potential buyers) are wondering where they want to be long term," Looney said. "They're thinking, 'Do I need all 8,000 square feet I have now. No, I just need 4,000.' They may be less impacted, but I think they're still being cautious." Baugh also said prospective buyers liked the use of green materials and design that maximizes space. Looney said the home under construction will be one of the first National Association of Home Builders-certified green homes in Nashville.