Phoenix AZ | Scottsdale AZ Real Estate

The most recent RL Brown Report has been issued.

Below please find the highlights of its focus on (Phoenix Area ) new home builders --

as reported by Brian Richards , Vice President , Coldwell Banker Residential Brokerage , Bulder Services

RL Brown makes some interesting predictions relative to how homebuilders will do business in the future.

"With the shifts in credit criteria, the probability of higher mortgage rates in the near and mid-terms, the loss of paper equity in the present stock of homes, and the general stumbling of the global and national economies, and the shifts in energy strategies, the die has been cast for a new housing consumer for the next several years." 

We have mentioned here before that the wise builders have re-invented their strategies. 

In the future we will see homes that offer standard features only to the extent that buyers can afford to pay.  Price point will remain critical.

Builders who will be profitable in the future will take measures to insure a more desirable finished lot cost as a percentage of sales price.

The credit crunch continues to be the biggest challenge going forward. RL believes that "...the politicians are committed to making the credit issue palatable to both consumers and housing producers, so expect a great deal of modification in the weeks to come." 

Brown believes that FHA will lead the way for the next few years.

Don't look for "down payment assistance" programs.  They most likely will NOT be revitalized even though the NAHB is lobbying hard.

RL Brown wonders who will take that role in the current credit crunch?  This credit tightening doesn't only affect home sales going forward but "naturally impacts the development and operational activity of all segments of the construction arena.

Some interesting results relative to which builders are selling product. 

As we stated before, those builders who are doing well have re-tooled their product and are offering good product with exceptional price points. 

• DR Horton's offering at Riata West produced 45 sales in July.
• Pulte Homes at Red Rock Village gained 17 sales. 
• The list of builders with five or more sales for the month has risen to 104 communities. 
• It didn't take long for the national builders to re-adjust to the market. 
• The top 30 communities for sales last month were completely dominated by the national builders.
• Dr Horton and Pulte combined for 20 of the 30 top selling communities. 

Go see some of the new offerings from these builders. - james wexler