New Home Builder Report (Phoenix AZ) from RL Brown

By
Real Estate Agent with wexzilla.com

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?

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Rainmaker
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Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

Pulte does a good job of marketing their homes up here in Mass. They build a decent product and usually give a good size home for the $$$.

Feb 13, 2009 09:17 AM #1
Anonymous
Troy Reynolds

Marketing companies working in or conjunction with homebuilders are really being looked to these days, as it's very hard to compete on price with the entire housing market falling out. Amenities, a sense of community and an overall sense of home are going to win the day, especially here in the Phoenix area. Home buyers no longer have to drive hours to qualify, they can afford nice homes in towns like Goodyear that are a mere half-hour drive away from the city core.

Feb 22, 2009 02:56 PM #2
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Rainer
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James Wexler

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