RL BROWN , the Maricopa County, Real Estate Expert shared the following information about the new home market and new home builders in a recent letter
- DR Horton captures the #1 spot for unit volume in 2008. 3,607 units were closed.
- Pulte was second with 3,238.
Both builders were aggressive in marketing and spec building.
It should be noted that DR Horton’s numbers do not reflect the large number of age-restricted units that are enjoyed by Pulte/Dell Webb division.
Right now, we have a 70,000+ unit housing market! Last year there were 72,000 actual new sales and resale home sales in the metro Phoenix housing market – not just contracts, but CLOSED HOMES.
While that is not what we enjoyed in 2005, it remains a WORLD CLASS HOUSING MARKET.
RL Brown believes that there will be an increase in the percentage of new homes this year because the “smart” builders are working with their land owners and subcontractors to compete with the foreclosed bank owned inventory that will be our competition for the next 4 to 5 years.
RL Brown believes many builders will be offering products that compare more favorably to the foreclosed homes. More innovative floor plans, higher energy efficiency, and larger lots will be the norm. Many builders are re-platting entire communities to offer larger lots with smaller homes.
RL Brown believes we will sell more than 70,000 units this year and a larger percentage will be new construction. He notes that, “qualified buyers will buy new homes that are smaller, less exotic, and that attract attention because of the innovation of the builders and developers.”
RL Brown believes, “Interest rates will provide some offset for strict loan qualifications and FHA loans with minimal down payments will dominate a large segment of the market.”
Condos will remain attractive for a buyer segment that desire urban living and most condos of the future will be in FHA price ranges so that the typical urban worker demographic can qualify. Lastly, there are many challenges ahead, and 2009-2013 will be a period where housing history will be made in metro Phoenix.
Times may not return to the “good old days” of 2005 for some time but we do expect to see an increase this year and total sales of 105,000 by 2013.
RL Brown finishes by saying- ”The REO holders will lose a lot of money. Housing speculators will lose a lot of money.” Some things never change. Sounds like the “smart guys” are figuring it out and will live to enjoy another cycle. Sound familiar?