WASHINGTON - -- Confidence among U.S. builders rose to the highest level in five years in May, a hopeful sign that modest improvement in the housing market will pick up.
The National Association of Home Builders/Wells Fargo builder sentiment index rose to 29 in May. That's the highest reading since May 2007 and up from a downwardly revised reading of 24 in April.
The index rose for six straight months before falling in April.
Still, any reading below 50 indicates negative sentiment about the housing market. The index hasn't reached hit that level since April 2006, the peak of the housing boom.
Homebuilders reported improving sales and higher traffic from prospective buyers. A gauge measuring confidence in sales over the next six months also rose, to 34 from 31.
The improved outlook follows other recent signs that the depressed housing market is slowly improving.
In March, builders requested the highest number of permits to build new homes and apartments in 3 1/2 years. And the number of people who signed contracts to buy homes rose in March to the highest level in nearly two years.
Mortgage rates have fallen to record lows and hiring has picked up, making it easier for more Americans to buy homes. Still, many would-be buyers are having difficulty qualifying for home loans or can't afford larger down payments required by banks.
by CHRISTOPHER S. RUGABER - May. 15, 2012 07:36 AM AP Economics Writer
Builder confidence highest in 5 years
Showing posts with label homebuilders. Show all posts
Showing posts with label homebuilders. Show all posts
Friday, May 18, 2012
Tuesday, May 15, 2012
Builder rolls out Line K at Pinnacle Peak Place
Piet Boon has a new look for north Scottsdale homes.
The Dutch designer and K. Hovnanian Homes are unveiling a line of contemporary semi-custom homes this weekend at Pinnacle Peak Place, a mile from of the city's iconic peak.
A four-bedroom model home opens Saturday in this gated community northeast of Pima and Happy Valley roads. Prices range from $700,000 to $820,000.
The interior of the 3,874-square-foot model home stands out with its stark white walls, modern lines and an abundance of disappearing glass walls and outdoor living space. That includes a reflecting pond in a breezeway, infinity-edge pool and a shower and soaking tub outside the master bathroom.
"The desert view is so incredible," Boon said in explaining the openness of his Arizona designs.
"It's so different with the boulders and cactus."
Boon is an interior and furniture designer based in Amsterdam, the Netherlands, with an international list of clients.
Boon joined with K. Hovnanian Homes, based in Red Bank, N.J., a year ago to create the builder's Line K of contemporary homes with its rollout in Scottsdale.
The result is a design that runs counter to the sameness of the Tuscan, Mediterranean and Spanish architecture so common in the gated communities across Scottsdale.
"We think there are people who are tired of Tuscan, tired of the traditional styles here," said Jack McSweeney, K. Hovnanian Homes Phoenix Group director of architecture.
It is a design that will appeal to younger buyers who are used to a more modern aesthetic as well as to Baby Boomers, he said.
The stonework and the exterior color schemes at Pinnacle Peak Place are similar to the surrounding homes but the sleeker lines and optional metal roof are less common for the area.
Pinnacle Peak Place was first developed in 2006 by the Pivotal Group Inc. and Geoffrey H. Edmunds & Associates Inc.
It was to include 80 homes on 124 acres.
In those boom times, the homesites were priced from $395,000 to $975,000, and homes of 4,000 to 6,000 square feet were offered at $1.5 million to $3 million.
Twenty-one homes were built, including a $3.3 million property in October 2007, but much of the community remains undeveloped.
K. Hovnanian Homes has 26 lots that it acquired earlier this year, McSweeney said.
It is offering three models with variations in floor plans.
All of them include four bedrooms, three-car garages and 31/2 or 41/2 bathrooms.
Prices start at $700,000 for a home of 3,305 square feet up to $820,000 for 3,874 square feet. Each lot is close to an acre in size.
Send real-estate news to peter.corbett@arizonarepublic.com. Follow him on Twitter @petercorbett1.
Line K debuts
What: K. Hovnanian Homes at Pinnacle Peak Place.
Where: 25851 N. 89th St.
Contact: 480-656-2789, khov.com or pietboon.com.
by Peter Corbett - May. 11, 2012 01:15 PM The Republic | azcentral.com
Builder rolls out Line K at Pinnacle Peak Place
The Dutch designer and K. Hovnanian Homes are unveiling a line of contemporary semi-custom homes this weekend at Pinnacle Peak Place, a mile from of the city's iconic peak.
A four-bedroom model home opens Saturday in this gated community northeast of Pima and Happy Valley roads. Prices range from $700,000 to $820,000.
The interior of the 3,874-square-foot model home stands out with its stark white walls, modern lines and an abundance of disappearing glass walls and outdoor living space. That includes a reflecting pond in a breezeway, infinity-edge pool and a shower and soaking tub outside the master bathroom.
"The desert view is so incredible," Boon said in explaining the openness of his Arizona designs.
"It's so different with the boulders and cactus."
Boon is an interior and furniture designer based in Amsterdam, the Netherlands, with an international list of clients.
Boon joined with K. Hovnanian Homes, based in Red Bank, N.J., a year ago to create the builder's Line K of contemporary homes with its rollout in Scottsdale.
The result is a design that runs counter to the sameness of the Tuscan, Mediterranean and Spanish architecture so common in the gated communities across Scottsdale.
"We think there are people who are tired of Tuscan, tired of the traditional styles here," said Jack McSweeney, K. Hovnanian Homes Phoenix Group director of architecture.
It is a design that will appeal to younger buyers who are used to a more modern aesthetic as well as to Baby Boomers, he said.
The stonework and the exterior color schemes at Pinnacle Peak Place are similar to the surrounding homes but the sleeker lines and optional metal roof are less common for the area.
Pinnacle Peak Place was first developed in 2006 by the Pivotal Group Inc. and Geoffrey H. Edmunds & Associates Inc.
It was to include 80 homes on 124 acres.
In those boom times, the homesites were priced from $395,000 to $975,000, and homes of 4,000 to 6,000 square feet were offered at $1.5 million to $3 million.
Twenty-one homes were built, including a $3.3 million property in October 2007, but much of the community remains undeveloped.
K. Hovnanian Homes has 26 lots that it acquired earlier this year, McSweeney said.
It is offering three models with variations in floor plans.
All of them include four bedrooms, three-car garages and 31/2 or 41/2 bathrooms.
Prices start at $700,000 for a home of 3,305 square feet up to $820,000 for 3,874 square feet. Each lot is close to an acre in size.
Send real-estate news to peter.corbett@arizonarepublic.com. Follow him on Twitter @petercorbett1.
Line K debuts
What: K. Hovnanian Homes at Pinnacle Peak Place.
Where: 25851 N. 89th St.
Contact: 480-656-2789, khov.com or pietboon.com.
by Peter Corbett - May. 11, 2012 01:15 PM The Republic | azcentral.com
Builder rolls out Line K at Pinnacle Peak Place
Scottsdale builders seeing surge in new homes
Apartment development is the focus of Scottsdale's housing market, but builders based in the city say they are seeing a surge in new-home sales elsewhere in the Valley.
Builders acquired permits for nearly 2,500 single-family homes in the first quarter, up 74 percent from a year ago, said Greg Burger, publisher with RL Brown of the "Phoenix Housing Market Letter."
Maracay Homes reports that it sold 190 homes through April, more than double its activity a year ago. Plus, this year's $50 million in sales far exceeds last year's pace when Maracay sold $60.5 million for all of 2011.It's a big change for a new-home market that went from dormant to sluggish before the recent uptick.
"It hasn't been wine and roses the past few years," said Andy Warren,Maracay president since April 2009.
The number of building permits issued continued to grow in April and homebuilders are responding with new communities and floor plans.
Maracay Homes, with its offices at the Scottsdale Quarter, has four communities in Tucson and seven in the Valley in Buckeye, Chandler, Goodyear, Peoria and Queen Creek.
Maracay, the Arizona subsidiary of the Weyerhauser Real Estate Co., plans to open five more communities with a total of 414 home sites by the second quarter of 2013. Those developments are in Litchfield Park, Queen Creek, Gilbert, Chandler and in east Mesa at Eastmark on the former General Motors Desert Proving Ground site.
The builder has two more communities under contract with 135 home sites in Queen Creek and an additional 22 at Verrado in Buckeye.
"We've repositioned Maracay in the last two years to take advantage of the challenges in the economy," said Warren, who previously worked for Weyerhauser's Winchester Homes subsidiary in Bethesda, Md.
Maracay expects to sell 300 homes in the Valley this year and an additional 100 in Tucson, he said. The company's average home price this year is $260,000.
Home inventory declines
A shrinking inventory of resale homes has buyers turning to new homes, and builders are responding to the demand.
The current pace of 11,000 homes this year could slow because of a tighter supply of suitable home sites and as builders limit their sales because of shortages of subcontractors, said Burger.
Buyers are getting frustrated with failed bids for a shrinking inventory of resale homes and are turning to new homes, he said, adding that the price difference of new homes costing more than resale properties is narrowing in some neighborhoods.
"We're moving in a direction that new homes are coming into focus," Burger said. "Some builders have opened the flood gates and are selling as many homes as they can."
Shea Homes Arizona has seen its sales jump 40 percent so far this year over 2011.
The California-based company, with its Arizona division in Scottsdale, is averaging about eight home sales per week, up from five over the past two years.
"It's pretty refreshing," said Ken Peterson, Shea Homes Arizona vice president of sales and marketing.
Sales are on the upswing because consumers who lost homes to foreclosure or short sales are becoming eligible for loans, he said.
Few new homes locally
Nearly all of the new-home subdivisions are outside of Scottsdale, which has a limited amount of large land tracts for new communities.
Scottsdale issued 63 building permits for single-family homes in the first quarter, up from 33 a year ago but far below Gilbert with 697 permits and Phoenix with 347.
Pulte Homes and Lennar each are building about 200 homes at the gated Lone Mountain community just west of Scottsdale at 60th Street and Lone Mountain Road.
Pulte spokeswoman Jacque Petroulakis said the builder has seen its traffic and sales more than double in the past few months.
Retirees, move-up families and second-home buyers are part of the sales surge, she said.
Pulte, which launched sales at Lone Mountain in April 2010, has homes of 1,933 to 3,026 square feet for $298,990 to $369,990.
Utility-cost savings are a big selling point for the new-home market, with builders touting better insulation, construction techniques, and more efficient appliances and heating and cooling systems..
Builders are also offering garages large enough for recreational vehicles and stand-alone buildings for shops, studios or guest casitas.
New communities planned
Scottsdale-based Maracay Homes has seven Valley communities and four in Tucson. It plans to open these five communities with 414 home sites in the next two years:
Savannah in Litchfield Park, 70 homes with lots of 85 by 130 feet. Opening May 19.
Montelena in Queen Creek, 59 homes with lots of 90 by 140 feet. Opening fall 2012.
Lyons Gate in Gilbert, 46 homes with lots of 60 by 118 feet. Opening late 2012.
Vaquero Ranch in Chandler, 74 homes with lots of 60 by 120 feet. Opening second quarter 2013.
Eastmark in east Mesa, 165 homes with about half the lots at 55 by 115 feet and half the lots at 70 by 120 feet. Opening second quarter 2013.
by Peter Corbett - May. 10, 2012 03:22 PM The Republic | azcentral.com
Scottsdale builders seeing surge in new homes
Builders acquired permits for nearly 2,500 single-family homes in the first quarter, up 74 percent from a year ago, said Greg Burger, publisher with RL Brown of the "Phoenix Housing Market Letter."
Maracay Homes reports that it sold 190 homes through April, more than double its activity a year ago. Plus, this year's $50 million in sales far exceeds last year's pace when Maracay sold $60.5 million for all of 2011.It's a big change for a new-home market that went from dormant to sluggish before the recent uptick.
"It hasn't been wine and roses the past few years," said Andy Warren,Maracay president since April 2009.
The number of building permits issued continued to grow in April and homebuilders are responding with new communities and floor plans.
Maracay Homes, with its offices at the Scottsdale Quarter, has four communities in Tucson and seven in the Valley in Buckeye, Chandler, Goodyear, Peoria and Queen Creek.
Maracay, the Arizona subsidiary of the Weyerhauser Real Estate Co., plans to open five more communities with a total of 414 home sites by the second quarter of 2013. Those developments are in Litchfield Park, Queen Creek, Gilbert, Chandler and in east Mesa at Eastmark on the former General Motors Desert Proving Ground site.
The builder has two more communities under contract with 135 home sites in Queen Creek and an additional 22 at Verrado in Buckeye.
"We've repositioned Maracay in the last two years to take advantage of the challenges in the economy," said Warren, who previously worked for Weyerhauser's Winchester Homes subsidiary in Bethesda, Md.
Maracay expects to sell 300 homes in the Valley this year and an additional 100 in Tucson, he said. The company's average home price this year is $260,000.
Home inventory declines
A shrinking inventory of resale homes has buyers turning to new homes, and builders are responding to the demand.
The current pace of 11,000 homes this year could slow because of a tighter supply of suitable home sites and as builders limit their sales because of shortages of subcontractors, said Burger.
Buyers are getting frustrated with failed bids for a shrinking inventory of resale homes and are turning to new homes, he said, adding that the price difference of new homes costing more than resale properties is narrowing in some neighborhoods.
"We're moving in a direction that new homes are coming into focus," Burger said. "Some builders have opened the flood gates and are selling as many homes as they can."
Shea Homes Arizona has seen its sales jump 40 percent so far this year over 2011.
The California-based company, with its Arizona division in Scottsdale, is averaging about eight home sales per week, up from five over the past two years.
"It's pretty refreshing," said Ken Peterson, Shea Homes Arizona vice president of sales and marketing.
Sales are on the upswing because consumers who lost homes to foreclosure or short sales are becoming eligible for loans, he said.
Few new homes locally
Nearly all of the new-home subdivisions are outside of Scottsdale, which has a limited amount of large land tracts for new communities.
Scottsdale issued 63 building permits for single-family homes in the first quarter, up from 33 a year ago but far below Gilbert with 697 permits and Phoenix with 347.
Pulte Homes and Lennar each are building about 200 homes at the gated Lone Mountain community just west of Scottsdale at 60th Street and Lone Mountain Road.
Pulte spokeswoman Jacque Petroulakis said the builder has seen its traffic and sales more than double in the past few months.
Retirees, move-up families and second-home buyers are part of the sales surge, she said.
Pulte, which launched sales at Lone Mountain in April 2010, has homes of 1,933 to 3,026 square feet for $298,990 to $369,990.
Utility-cost savings are a big selling point for the new-home market, with builders touting better insulation, construction techniques, and more efficient appliances and heating and cooling systems..
Builders are also offering garages large enough for recreational vehicles and stand-alone buildings for shops, studios or guest casitas.
New communities planned
Scottsdale-based Maracay Homes has seven Valley communities and four in Tucson. It plans to open these five communities with 414 home sites in the next two years:
Savannah in Litchfield Park, 70 homes with lots of 85 by 130 feet. Opening May 19.
Montelena in Queen Creek, 59 homes with lots of 90 by 140 feet. Opening fall 2012.
Lyons Gate in Gilbert, 46 homes with lots of 60 by 118 feet. Opening late 2012.
Vaquero Ranch in Chandler, 74 homes with lots of 60 by 120 feet. Opening second quarter 2013.
Eastmark in east Mesa, 165 homes with about half the lots at 55 by 115 feet and half the lots at 70 by 120 feet. Opening second quarter 2013.
by Peter Corbett - May. 10, 2012 03:22 PM The Republic | azcentral.com
Scottsdale builders seeing surge in new homes
Improving Home Builder Morale Tops Warm Winter Rally Amid New Selling Season PHM LEN - Investors.com
Home builder morale rose to a five-year high in May and is better than it was during the mild winter months, suggesting the recent rally isn't just a weather-related anomaly.
The National Association of Home Builders sentiment index climbed to 29 from 24 in April. Readings for current conditions, the six-month outlook and traffic also rose, nearing or besting winter highs.
In intraday trading, Lennar (LEN), D.R. Horton (DHI) and KB Home (KBH) were each up more than 4%. PulteGroup (PHM) and Toll Brothers (TOL) advanced more than 2%.
The Building-Residential/Commercial group, No. 1 out of IBD's 197 industries this week, climbed to its highest level since Aug. '07.
Do-it-yourself retail giant Home Depot (HD), which reported in-line earnings and sales below estimates Tuesday morning, was off 1.6%.
Homebuilders reported higher orders and backlogs in their latest quarterly earnings, in line with separate data pointing to stabilization in the housing market.
Readings had been strong in February and March but retreated in April. But the latest rebound could point to some underlying strength. The NAHB's traffic subindex jumped to 23 in May from 18, also hitting a five-year high.
The overall index is still historically low and still far from the break-even level of 50. Readings above that mean more builders see good conditions than bad.
NAHB also noted obstacles to housing persist, such as access to credit, "inaccurate" appraisals, and rising materials prices. Data on housing starts come out Wednesday, offering another opportunity for a stock lift.
by Jason Ma Investor's Business Daily May 15, 2012
Improving Home Builder Morale Tops Warm Winter Rally Amid New Selling Season PHM LEN - Investors.com
The National Association of Home Builders sentiment index climbed to 29 from 24 in April. Readings for current conditions, the six-month outlook and traffic also rose, nearing or besting winter highs.
In intraday trading, Lennar (LEN), D.R. Horton (DHI) and KB Home (KBH) were each up more than 4%. PulteGroup (PHM) and Toll Brothers (TOL) advanced more than 2%.
The Building-Residential/Commercial group, No. 1 out of IBD's 197 industries this week, climbed to its highest level since Aug. '07.
Do-it-yourself retail giant Home Depot (HD), which reported in-line earnings and sales below estimates Tuesday morning, was off 1.6%.
Homebuilders reported higher orders and backlogs in their latest quarterly earnings, in line with separate data pointing to stabilization in the housing market.
Readings had been strong in February and March but retreated in April. But the latest rebound could point to some underlying strength. The NAHB's traffic subindex jumped to 23 in May from 18, also hitting a five-year high.
The overall index is still historically low and still far from the break-even level of 50. Readings above that mean more builders see good conditions than bad.
NAHB also noted obstacles to housing persist, such as access to credit, "inaccurate" appraisals, and rising materials prices. Data on housing starts come out Wednesday, offering another opportunity for a stock lift.
by Jason Ma Investor's Business Daily May 15, 2012
Improving Home Builder Morale Tops Warm Winter Rally Amid New Selling Season PHM LEN - Investors.com
Friday, May 4, 2012
Gilbert home construction outpaces other cities in Valley
Home construction in Gilbert continues to outpace every other Valley municipality, and the town is on track for its most robust year in new-home permits since 2006.
Several new and existing subdivisions around Gilbert are experiencing a flurry of activity as homebuilders look to capitalize on a rebound in the housing market.
Nearly every Valley community has seen a significant jump in permit activity during the first few months of the year, but nowhere is the spike more pronounced than in Gilbert, according to data produced by the Home Builders Association of Central Arizona.
The town has issued 981 single-family home permits this year, compared with 437 permits during the same four-month period in 2011. Gilbert is on pace to issue almost 3,000 permits this year, which would nearly triple its total from two years ago.
A lack of inventory for resale houses is driving more real-estate agents to point prospective buyers toward new homes instead, Pulte Homes spokeswoman Jacque Petroulakis said.
"Overall, the Southeast Valley is seeing a lot of activity and buyer confidence in terms of real estate," Petroulakis said.
Pulte Homes is selling houses in two partially built subdivisions in Gilbert: Stratland Estates and Lyon's Gate. Both communities have seen an increase in traffic over the past six months, and the company has sold about twice as many homes as expected during the past three months, Petroulakis said.
Meanwhile, prices for the new homes have increased slightly with the rise in demand, she said.
Gilbert's sprawling Power Ranch community near Power and Germann roads has been one of the most active in home construction, according to town records. Gilbert issued 56 home permits for Power Ranch in April, more than any other subdivision.
About two dozen other communities, mainly in the town's southern region, were issued single-family permits in March and April, records show.
The vast majority of home permits result in a finished house with occupants, Planning & Development Services Manager Kyle Mieras said.
"I don't think we have many that are sitting vacant," Mieras said. "Builders aren't really building spec homes right now."
With Gilbert's average household size just over three people, the new homes could end up drawing several thousand residents over the next several months.
Homebuilders' construction plans are reviewed by nearly every town department to analyze the effect on traffic, schools and municipal services. Although it is rare for the town to reject a proposal, developers often work with officials and nearby residents to make changes to plans before they are approved by the Planning Commission, Mieras said.
In addition to single-family construction, at least three apartment plans are in Gilbert's pipeline that would result about 900 total units. There are now about 7,200 apartments in Gilbert.
About 95 percent of the town's housing inventory is single-family detached residences, according to the General Plan. A Maricopa Association of Governments report estimated there were about 74,000 homes in Gilbert in 2009, but the report suggests that number could grow to 92,000 in 2020 and 109,000 in 2030.
From 1996 to 2006, Gilbert issued more than 3,000 home permits every year but one, according to U.S. Census Bureau statistics. In 2004, that number peaked at 5,071.
Then the recession put the kibosh on speculative construction, and the number of residential permits issued plummeted to 1,109 in 2008 before rebounding to 1,275 in 2009.
By the numbers
Gilbert has issued more than twice as many permits through the first four months of this year as compared with the same period in 2011.
2012
January: 149.
February: 262.
March: 286.
April: 284.
Four-month total: 981.
2011
January: 63.
February: 88.
March: 135.
April: 151.
Four-month total: 437.
Around the Valley
Permit numbers suggest more homes are being built in Gilbert than any other Valley municipality. The town has issued about twice as many permits in 2012 as Phoenix, which has issued the second most. Here are some municipalities' totals for the first quarter of 2012.
Gilbert: 697.
Phoenix: 347.
Mesa: 163.
Glendale: 71.
Chandler: 181.
Scottsdale: 64.
Goodyear: 201.
Queen Creek: 42.
New communities planned
The Gilbert Planning Commission has recently approved plans for several communities in Gilbert, including the following:
Marbella Vineyards
Date approved: April 4.
Description: The second phase of an existing community near Higley and Ocotillo roads, the project will include about 300 homes.
Santanilla
Date approved: April 4.
Description: The project includes plans for about 80 homes on the west side of Higley Road south of Riggs Road.
The Bridges East.
Date approved: March 7
Description: Plans include about 850 single-family homes in a master-planned community near Recker and Ocotillo roads.
Cooley Station North
Date Approved: Feb. 1
Description: The project will add about 70 homes to the Cooley Station subdivision near Recker and Warner roads.
by Parker Leavitt - May. 2, 2012 09:29 AM The Republic | azcentral.com
Gilbert home construction outpaces other cities in Valley
Several new and existing subdivisions around Gilbert are experiencing a flurry of activity as homebuilders look to capitalize on a rebound in the housing market.
Nearly every Valley community has seen a significant jump in permit activity during the first few months of the year, but nowhere is the spike more pronounced than in Gilbert, according to data produced by the Home Builders Association of Central Arizona.
The town has issued 981 single-family home permits this year, compared with 437 permits during the same four-month period in 2011. Gilbert is on pace to issue almost 3,000 permits this year, which would nearly triple its total from two years ago.
A lack of inventory for resale houses is driving more real-estate agents to point prospective buyers toward new homes instead, Pulte Homes spokeswoman Jacque Petroulakis said.
"Overall, the Southeast Valley is seeing a lot of activity and buyer confidence in terms of real estate," Petroulakis said.
Pulte Homes is selling houses in two partially built subdivisions in Gilbert: Stratland Estates and Lyon's Gate. Both communities have seen an increase in traffic over the past six months, and the company has sold about twice as many homes as expected during the past three months, Petroulakis said.
Meanwhile, prices for the new homes have increased slightly with the rise in demand, she said.
Gilbert's sprawling Power Ranch community near Power and Germann roads has been one of the most active in home construction, according to town records. Gilbert issued 56 home permits for Power Ranch in April, more than any other subdivision.
About two dozen other communities, mainly in the town's southern region, were issued single-family permits in March and April, records show.
The vast majority of home permits result in a finished house with occupants, Planning & Development Services Manager Kyle Mieras said.
"I don't think we have many that are sitting vacant," Mieras said. "Builders aren't really building spec homes right now."
With Gilbert's average household size just over three people, the new homes could end up drawing several thousand residents over the next several months.
Homebuilders' construction plans are reviewed by nearly every town department to analyze the effect on traffic, schools and municipal services. Although it is rare for the town to reject a proposal, developers often work with officials and nearby residents to make changes to plans before they are approved by the Planning Commission, Mieras said.
In addition to single-family construction, at least three apartment plans are in Gilbert's pipeline that would result about 900 total units. There are now about 7,200 apartments in Gilbert.
About 95 percent of the town's housing inventory is single-family detached residences, according to the General Plan. A Maricopa Association of Governments report estimated there were about 74,000 homes in Gilbert in 2009, but the report suggests that number could grow to 92,000 in 2020 and 109,000 in 2030.
From 1996 to 2006, Gilbert issued more than 3,000 home permits every year but one, according to U.S. Census Bureau statistics. In 2004, that number peaked at 5,071.
Then the recession put the kibosh on speculative construction, and the number of residential permits issued plummeted to 1,109 in 2008 before rebounding to 1,275 in 2009.
By the numbers
Gilbert has issued more than twice as many permits through the first four months of this year as compared with the same period in 2011.
2012
January: 149.
February: 262.
March: 286.
April: 284.
Four-month total: 981.
2011
January: 63.
February: 88.
March: 135.
April: 151.
Four-month total: 437.
Around the Valley
Permit numbers suggest more homes are being built in Gilbert than any other Valley municipality. The town has issued about twice as many permits in 2012 as Phoenix, which has issued the second most. Here are some municipalities' totals for the first quarter of 2012.
Gilbert: 697.
Phoenix: 347.
Mesa: 163.
Glendale: 71.
Chandler: 181.
Scottsdale: 64.
Goodyear: 201.
Queen Creek: 42.
New communities planned
The Gilbert Planning Commission has recently approved plans for several communities in Gilbert, including the following:
Marbella Vineyards
Date approved: April 4.
Description: The second phase of an existing community near Higley and Ocotillo roads, the project will include about 300 homes.
Santanilla
Date approved: April 4.
Description: The project includes plans for about 80 homes on the west side of Higley Road south of Riggs Road.
The Bridges East.
Date approved: March 7
Description: Plans include about 850 single-family homes in a master-planned community near Recker and Ocotillo roads.
Cooley Station North
Date Approved: Feb. 1
Description: The project will add about 70 homes to the Cooley Station subdivision near Recker and Warner roads.
by Parker Leavitt - May. 2, 2012 09:29 AM The Republic | azcentral.com
Gilbert home construction outpaces other cities in Valley
Tuesday, April 24, 2012
Moody's predicts tougher times for some homebuilders | HousingWire
Not that the housing market is particularly robust, but larger companies are taking market share from less-prepared homebuilders, according to a report from Moody's Investors Service.
Homebuilders MDC Holdings ($26.07 0.43%), Toll Brothers ($23.50 0.44%), D.R. Horton ($15.66 0.6%) and Lennar ($25.55 0.83%) will likely grow at a rate above the 7% expectation Moody's holds for the industry. Hovnanian Enterprises ($1.92 0.0405%), Beazer Homes ($2.79 0.06%) and Orleans Homebuilders could struggle, the report states.
"Given recent builder commentary, we believe builders implementing pricing actions through a combination of price increases and incentive reductions can emerge as one of the single most important trends this earnings season," said Stephen Kim, homebuilder analyst at Barclays Capital.
The outlook for homebuilding remains stable, with revenue set to continue to grow on stronger deliveries during the next 12 to 18 months. Increased foreclosure rates will grow supply and depress home prices, on the downside.
"Although homebuilder revenues are expected to rise by more than 10% in 2012 on the back of bigger volumes, Moody's still maintains a stable outlook," said Moody's Credit Analyst Joseph Snider. "Pressures from a rise in foreclosures and declining house prices will dampen homebuilder operating profits even as homebuilders sell more units."
Housing starts dropped 5.8% in March from February, according to the Commerce Department, but rose 10.3% from a year earlier. Building permits also jumped 4.5% month-to-month.
by Jacob Gaffney Housingwire Apr 20, 2012
Moody's predicts tougher times for some homebuilders | HousingWire
Saturday, April 14, 2012
Homebuilders busy again in corners of metro Phoenix
Homebuilding, metro Phoenix's biggest industry before the housing crash, is on the rise again.
Unlike in the past, this burst in the region's homebuilding isn't being driven by buyers going farther and farther out to find a house they can afford or investors looking for bargains.
In some areas of metro Phoenix, including Chandler and Gilbert in the southeast and Peoria and Surprise in the northwest, short-sale home prices are climbing so high due to multiple offers that resale home prices are rivaling new-home costs.
At the same time, builders are able to put up new houses for costs that let them compete with foreclosure-home prices. Many picked up empty lots in prime locations for bargain prices during the crash and can keep construction costs low.
The results: Among buyers, a growing number who have been outbid multiple times on short sales and foreclosures are opting to purchase new houses instead. And among builders, who have seen several dismal years of slow sales and deep losses, some are now reporting profits or at least their highest monthly sales in years.
Amy Baum had been outbid on seven short sales on homes in Chandler and Gilbert when her real-estate agent persuaded her to look at new homes in Gilbert.
Baum, an occupational nurse who treats employees at Intel, wanted to be near her job and her parents, who live in the southeast Valley.
"The prices on short sales were being bid up so high, I would have ended up paying $215,000 for a home that would take another $15,000 to fix up," said Baum. "I could get a new house for $215,000 and not have to worry about fighting some other buyer for it or renovating it."
New-home recovery
New-home sales and permits to build homes are up significantly in metro Phoenix from last year, due mostly to buyers like Baum.
"There's no question the new home market is finally on its way back," said RL Brown, publisher of the "Phoenix Housing Market Letter," a monthly newsletter tracking homebuilding. "But no one knows whether it will come back rip-roaring like the boom of 2006 or a more normal market like 2003."
For the first two months of this year, new home permits are up 84 percent compared with the same period in 2011, but the overall numbers are still low by metro Phoenix standards.
In January and February, there were 1,460 single-family permits issued in the region. In 2003, there were about 2,500 permits issued a month. In 2006, new homes went up at an average rate of 5,300 a month.
New-home sales are up 34 percent, but again, there were only 1,099 during the first two months of the year.
Several builders are reporting March was their best month for sales in years, and the uptick in the new-home market is likely to continue for at least a few more months.
Homebuilder Taylor Morrison sold more than 100 metro Phoenix houses in three weeks, making March its best year for sales in four years, said Pierrette Tierney, the company's vice president of sales and marketing.
She said buyers who have lost bidding wars on short-sale and foreclosure homes are Taylor Morrison's biggest group of buyers now.
"People call after looking at one of our houses and say, "If I write you a deposit check right now, can I get that lot?' " Tierney said.
"They are so happy when we tell them yes because they have been turned down so many times trying to buy existing houses. Of course, we are thrilled, too."
Location, location
Not all areas of metro Phoenix's new-home market are drawing buyers. The areas with the most homes being built are also the areas with the fewest existing homes for sale. The fringe parts of the Valley, the communities farthest out, continue to struggle.
"Real-estate agents are beginning to steer clients to new homes again because, in certain areas, it's the only option for their buyers," said Marcie Jarnagin-Beckham, a sales associate with Meritage's Villages at Val Vista in Gilbert, where Baum purchased her home.
The majority of new homes sold in metro Phoenix during the past year have been in Gilbert and Chandler. Buyers are drawn to those areas for the schools, jobs and shopping.
Other popular areas are Peoria and Surprise in the northwest. Several large employers have moved into the areas, and the expansion of Loop 303 has made commutes easier.
"It's all about location for homebuyers now," said Brown. "People will no longer drive until they qualify to buy a house."
Perry Dion has been trying to buy a house in Peoria for the past year. He has bid on dozens of short sales and even gone to the foreclosure auctions in front of the Maricopa County Courthouse.
"I have been going month-to-month on my apartment paying more because I kept thinking one of my offers would be accepted," he said. "But recently, I realized I have saved enough money that I can buy a new home in the area."
He's been checking out new subdivisions in Peoria and north Phoenix for the past few weekends and hopes to sign a contract this month.
Dion wants to sign a deal soon because he is already seeing some slight increases in the prices of the new homes he's checked out.
Market conditions
There's a shortage of home lots in the areas of the Valley where most new houses are being built. That, along with demand for more buyers, could push up overall new home prices this year, say real-estate analysts.
"I don't think any homebuilders are jumping up and down yet, but it feels good to be selling homes again," said Carl Mulac, president of AV Homes and chairman of the Home Builders Association of Central Arizona. "I am just concerned about how long this window of opportunity will last."
Some builders are expected to try to draw buyers in other parts of the Valley where they still have inexpensive lots. But there's no guarantee that strategy will work.
Building costs could rise if new-home demand continues to increase.
Subcontractors had to cut what they charged builders to survive the downturn, and most are ready to raise their fees as soon as they can, said Brown. Those higher fees will push up new-home prices.
And bargains on empty lots in foreclosure are mostly gone, so builders' land costs will continue to rise.
"My biggest concern for the market," Mulac said, "is whether the price appreciation of new homes can outpace the cost appreciation builders will soon be facing."
MORE ON THIS TOPIC
Single-family permits issued in metro Phoenix
1,460In January and February
2,500Per month in 2003
5,300Per month in 2006
by Catherine Reagor - Apr. 13, 2012 11:07 PM The Republic | azcentral.com
Homebuilders busy again in corners of metro Phoenix
Unlike in the past, this burst in the region's homebuilding isn't being driven by buyers going farther and farther out to find a house they can afford or investors looking for bargains.
In some areas of metro Phoenix, including Chandler and Gilbert in the southeast and Peoria and Surprise in the northwest, short-sale home prices are climbing so high due to multiple offers that resale home prices are rivaling new-home costs.
At the same time, builders are able to put up new houses for costs that let them compete with foreclosure-home prices. Many picked up empty lots in prime locations for bargain prices during the crash and can keep construction costs low.
The results: Among buyers, a growing number who have been outbid multiple times on short sales and foreclosures are opting to purchase new houses instead. And among builders, who have seen several dismal years of slow sales and deep losses, some are now reporting profits or at least their highest monthly sales in years.
Amy Baum had been outbid on seven short sales on homes in Chandler and Gilbert when her real-estate agent persuaded her to look at new homes in Gilbert.
Baum, an occupational nurse who treats employees at Intel, wanted to be near her job and her parents, who live in the southeast Valley.
"The prices on short sales were being bid up so high, I would have ended up paying $215,000 for a home that would take another $15,000 to fix up," said Baum. "I could get a new house for $215,000 and not have to worry about fighting some other buyer for it or renovating it."
New-home recovery
New-home sales and permits to build homes are up significantly in metro Phoenix from last year, due mostly to buyers like Baum.
"There's no question the new home market is finally on its way back," said RL Brown, publisher of the "Phoenix Housing Market Letter," a monthly newsletter tracking homebuilding. "But no one knows whether it will come back rip-roaring like the boom of 2006 or a more normal market like 2003."
For the first two months of this year, new home permits are up 84 percent compared with the same period in 2011, but the overall numbers are still low by metro Phoenix standards.
In January and February, there were 1,460 single-family permits issued in the region. In 2003, there were about 2,500 permits issued a month. In 2006, new homes went up at an average rate of 5,300 a month.
New-home sales are up 34 percent, but again, there were only 1,099 during the first two months of the year.
Several builders are reporting March was their best month for sales in years, and the uptick in the new-home market is likely to continue for at least a few more months.
Homebuilder Taylor Morrison sold more than 100 metro Phoenix houses in three weeks, making March its best year for sales in four years, said Pierrette Tierney, the company's vice president of sales and marketing.
She said buyers who have lost bidding wars on short-sale and foreclosure homes are Taylor Morrison's biggest group of buyers now.
"People call after looking at one of our houses and say, "If I write you a deposit check right now, can I get that lot?' " Tierney said.
"They are so happy when we tell them yes because they have been turned down so many times trying to buy existing houses. Of course, we are thrilled, too."
Location, location
Not all areas of metro Phoenix's new-home market are drawing buyers. The areas with the most homes being built are also the areas with the fewest existing homes for sale. The fringe parts of the Valley, the communities farthest out, continue to struggle.
"Real-estate agents are beginning to steer clients to new homes again because, in certain areas, it's the only option for their buyers," said Marcie Jarnagin-Beckham, a sales associate with Meritage's Villages at Val Vista in Gilbert, where Baum purchased her home.
The majority of new homes sold in metro Phoenix during the past year have been in Gilbert and Chandler. Buyers are drawn to those areas for the schools, jobs and shopping.
Other popular areas are Peoria and Surprise in the northwest. Several large employers have moved into the areas, and the expansion of Loop 303 has made commutes easier.
"It's all about location for homebuyers now," said Brown. "People will no longer drive until they qualify to buy a house."
Perry Dion has been trying to buy a house in Peoria for the past year. He has bid on dozens of short sales and even gone to the foreclosure auctions in front of the Maricopa County Courthouse.
"I have been going month-to-month on my apartment paying more because I kept thinking one of my offers would be accepted," he said. "But recently, I realized I have saved enough money that I can buy a new home in the area."
He's been checking out new subdivisions in Peoria and north Phoenix for the past few weekends and hopes to sign a contract this month.
Dion wants to sign a deal soon because he is already seeing some slight increases in the prices of the new homes he's checked out.
Market conditions
There's a shortage of home lots in the areas of the Valley where most new houses are being built. That, along with demand for more buyers, could push up overall new home prices this year, say real-estate analysts.
"I don't think any homebuilders are jumping up and down yet, but it feels good to be selling homes again," said Carl Mulac, president of AV Homes and chairman of the Home Builders Association of Central Arizona. "I am just concerned about how long this window of opportunity will last."
Some builders are expected to try to draw buyers in other parts of the Valley where they still have inexpensive lots. But there's no guarantee that strategy will work.
Building costs could rise if new-home demand continues to increase.
Subcontractors had to cut what they charged builders to survive the downturn, and most are ready to raise their fees as soon as they can, said Brown. Those higher fees will push up new-home prices.
And bargains on empty lots in foreclosure are mostly gone, so builders' land costs will continue to rise.
"My biggest concern for the market," Mulac said, "is whether the price appreciation of new homes can outpace the cost appreciation builders will soon be facing."
Single-family permits issued in metro Phoenix
1,460In January and February
2,500Per month in 2003
5,300Per month in 2006
by Catherine Reagor - Apr. 13, 2012 11:07 PM The Republic | azcentral.com
Homebuilders busy again in corners of metro Phoenix
Thursday, April 5, 2012
Homebuilder Sector Up 28%
Home investors bought 1.23 million homes in 2011, a 65 percent jump from 2010. 50 percent of those purchases were either foreclosures or short sales. Lawrence Yun, National Association of Realtors chief economist; Gary Beasley, Wayport Real Estate Group managing director; and CNBC's Courtney Reagan offer insight.
Homebuilder Sector Up 28%
Homebuilder Sector Up 28%
Thursday, March 8, 2012
Housing Update Spring 2012
There’s been much talk that the rising gas prices will derail the economic recovery. I will play the devil’s advocate here and say that last year around this time, gas prices spiked as well and it was short-lived through talks with OPEC and we may see that happen again here. I do agree that there is much tension in the Middle East so we have to keep a watchful eye on that situation.
As for the positive turn in the economy and the increased consumer confidence, I am a believer that we are indeed turning the corner and this year may prove to be the stabilization of the housing market as a couple of the big banks had predicted. It still remains to be seen and we will have a better gage come mid-year.
On the plus side for housing, there will be a new pool of buyers coming out of the waiting period after a bankruptcy which spiked in 2005 although they are still de-leveraging and probably were laid off and now working at a job making less money. Or perhaps they are now a single income household versus a dual income household.
In 2005, a record year for bankruptcy filings, 2.08 million cases were filed, with both individuals and businesses filing at higher rates than usual.
After the late-2005 rush to file, there was a lull, but in the years following, filings have increased steadily. Last year, 1.53 million bankruptcy cases were filed in the States, the highest since the law’s passage, and March’s numbers suggest that this year could have an even higher number.
I am also a believer that the trend is your friend and that numbers don’t lie. I have been tracking the homebuilders since October 2011 and the trend has been increasing since then as the graph of the SPDR S&P Homebuilders ETF shows:
The indexes have also been trading in the positive.
| Price | Change | Assets * | ||||
| $20.21 | +2.33% | $1,232,036 | 6,554,611 | +18.19% | ||
| $14.17 | +3.05% | $513,684 | 1,544,611 | +19.28% | ||
| $41.96 | +2.47% | $36,801 | 7,917 | +16.46% | ||
| $13.58 | +2.18% | $28,014 | 17,108 | +13.36% |
And there is some good news coming down the pike to help the housing recovery. There are whispers of lending guidelines loosening and broadening; hopefully sometime this year. And with the new version of Harp 2.0, it is projected to be able to help an additional 4 million upside down borrowers.
There are more positive signs looming at this time this year as compared to this time last year. I believe we will have a better pulse on the situation come mid summer. Stay tuned.
Homebuilders offering self-sufficient, sustainable homes
Homebuilders are trying to capitalize on public angst toward electric utilities by offering "net-zero, no-electric-bill homes" that promise to wipe out monthly bills, but the details are a little more complicated.
The homes are built with energy-conserving appliances and insulation, and they use solar panels to generate electricity.
The homes still are connected to the utility grid to get power after dark, but the solar arrays are designed to produce enough electricity throughout the year to balance out what customers will buy from their utility, making their "net" energy costs zero for the year.
The latest company to offer net-zero houses is Shea Homes, which is offering the energy features as standard at its active-adult communities of Vistancia in Peoria and Encanterra in the San Tan Valley area through its SheaXero program.
The program also is available in all Shea Active Lifestyle and Trilogy communities in California, Florida, Nevada and Washington.
Shea markets the project as "the no-electric-bill home."
Utilities however, still charge a basic service fee to be connected to the grid. For Arizona Public Service Co. customers, that comes out to about $8.55 a month, or more than $100 a year. Salt River Project customers pay at least $180 a year in basic service charges even if they offset all their electricity usage with solar power.
The basic-service charges can be higher depending on the rate plan.
Net-zero homeowners still could end up paying for at least a little electricity, especially in summer when air-conditioners run often. But the homes are built to generate excess electricity in the other months, which the utilities credit on their next bill.
The Shea net-zero homes start at less than $180,000 with the energy features included, and they are priced as high as $700,000.
The company raised its prices about $5,000 on every home from Seattle to Florida to pay for the features, said Rick Andreen, president of Shea Homes Active Lifestyle Communities.
Shea first offered net-zero homes in 1999 in a San Diego development and six years ago began offering small solar arrays as a standard feature in its adult communities, but this is the first time the features have been standard, rather than an option, he said.
About 90 percent of the company's floor plans can now be made net zero, Andreen said.
Each home will get a custom solar array designed to replace all of the electricity the home will use in a year, except in Florida, where utility restrictions limit to 90 percent the amount of energy a home can offset.
"It's no secret, if you asked our consumers what is your favorite big corporation, they are probably not going to list a large public utility," Andreen said. "It is a little like Big Oil. You are trapped. You have to buy gas. It is something we live with. When the price (of electricity) goes up, people don't appreciate it. There is a certain freedom in saying no, you don't have to buy it. That is the emotion we are tapping into with this."
The company has found through market research that the customers most interested in energy-efficient homes are empty nesters looking to stabilize their monthly finances, and those attracted to the "soft" benefits, like leaving the world a better place for their children and grandchildren, he said.
Meritage, too
Meritage Homes Corp. of Scottsdale began offering net-zero homes in 2011, also with the hope of "never paying a utility bill again." It now offers the option for $10,000 to $20,000 at all 17 of its Arizona communities. The price of the upgrade depends on the utility serving the community.
Other large builders such as PulteGroup Inc. increasingly are taking advantage of incentives from utilities to build efficient homes. APS reports the 20 largest builders in its territory now partner with the utility for efficient homes, but only Shea and Meritage have begun marketing net-zero properties.
When Meritage first offered net-zero homes at Verrado in the West Valley last year, 60 percent of the homebuyers took the option, said C.R. Herro, vice president of environmental affairs for Meritage.
"We anticipated 5 or 10 percent," he said. "Since then we have been building a lot of net-zero homes. It has tailed off, but we still see 30 to 40 percent upgrade to net zero."
The new Shea homes come equipped with insulation blown into the walls to keep out the summer heat; efficient air-conditioners and other appliances; compact-fluorescent lightbulbs; insulated garage doors; occupancy sensors for lights; and more.
Still, the energy benefits depend on how people use the homes. Shea and SolarCity guarantee how much energy the solar panels will produce but can't guarantee how people will use electricity.
"If a person puts in an overly large swimming pool and fountain, or runs an industrial workshop in their garage, guess what, they will not be a net-zero house," Andreen said. "And we can't get rid of the (utilities') basic service charges. Utility companies need to make money. They are still providing power lines and service at night when we can't produce energy."
Meritage uses some of the same technology as Shea and some different tactics to achieve net-zero in its homes. The most notable difference is the solar-electric hybrid system that also produces hot water and space heating and cooling.
Herro said the homes have been performing as expected but that customer behavior is a big factor in whether they actually have to pay utilities for energy costs beyond the basic service charges.
"Once you get to a super-efficient, low-energy-demand residence, behavior starts to dominate," Herro said. "If someone lives conservatively, they are making more energy than they are using. But if someone starts to feel like energy is now free and starts using it with abandon, they have a net energy demand at the end of the year."
Herro said with Meritage being a publicly traded housing company, officials had to be sure they were confident in the net-zero concept before moving ahead, because their reputation could hinge on success.
"It is not a good business strategy (to do it poorly) because those customers will be vocal in the marketplace," he said. "We'd rather have them have a positive experience and be vocal about it in the marketplace."
Utilities help out
While homebuilders such as Shea are capitalizing on consumers' dislike of electric utilities, the net-zero programs would not be possible without them. Arizona utilities provide incentives for efficiently built homes and for solar panels.
They pay those incentives with special tariffs levied on customers.
The maximum renewable-energy tariff on an APS residential customer is $3.84 per month, in addition to the average $2.99 a month tariff for energy efficiency.
SRP charges customers a tariff that averages about $4.50 a month on residential customers to pay for energy-efficiency rebates and alternative-energy projects.
APS has been recognized by the Environmental Protection Agency every year since 2007 for the incentives it pays homebuilders to make homes energy-efficient and for the number of efficient homes built in its territory.
The EPA offers a Home Performance With Energy Star program to set criteria for efficiency in homebuilding.
APS pays builders $400 for every home built to the EPA Energy Star criteria, and $1,000 for every home that is built to an even higher level of efficiency. APS is seeking approval to increase those incentives to $1,000 and $1,500, respectively, per home.
About 9,000 homes in APS territory have been built with Energy Star ratings since 2006, said Tom Hines, energy-efficiency program manager.
Homebuilders and the EPA rely on the "home-energy rating system," or HERS, to grade the efficiency of homes. A score of 90 means the home is 10 percent more energy-efficient than one built at today's building codes, which would score 100. Older homes can score greater than 100 to reflect the weaker energy-efficiency codes of the past.
The ratings take insulation, appliances and other features into account, as well as power produced on-site from solar panels. A net-zero home has a HERS rating of 0.
"People would never buy a car these days without looking at that sticker with the miles per gallon," Hines said. "People don't buy an appliance today without looking at that sticker. HERS is the same thing on a home. All homes are not created equally."
APS must ensure the performance of the homes once they are built, he said.
Homebuilders must pay independent contractors to test the homes that APS subsidizes to ensure they are as efficient as promised. The utility also compares the power usage from those homes once they are occupied to ensure they are meeting expectations for conservation, he said.
Keeping solar simple
To keep things simple for homeowners, Shea has formed an alliance with SolarCity of San Mateo, Calif., which typically offers solar arrays for lease.
Shea is paying SolarCity upfront for the systems, which Andreen said works well for Shea in adult communities because most empty nesters pay cash for their homes and make substantial down payments, rather than financing their purchase.
"It is all handled by Shea," said Walter Cuculic, manager of national homebuilder programs for SolarCity. "Once they pay for their house, there are no future expenses with SolarCity. Shea covers that as part of the home purchase."
Buyers get a 20-year service contract for SolarCity to keep the solar panels and associated equipment such as inverters operating properly, and a guarantee for the amount of electricity it will generate annually in that contract period.
At the end of the contract, customers can have the equipment removed, extend the contract or upgrade, Cuculic said.
SolarCity and Shea are offering the same deal in all five states, even though the incentives they get from utilities vary by region. SolarCity can take advantage of federal incentives of 30 percent of the cost of solar arrays nationwide.
"That is really one of the most exciting things," Cuculic said. "It is great that solar is now starting to work in states where there are no (utility) incentives."
by Ryan Randazzo - Mar. 3, 2012 04:15 PM The Republic | azcentral.com
Homebuilders offering self-sufficient, sustainable homes
Fulton, 80, still building his legacy
The housing market may be sluggish, but homebuilding mogul, philanthropist and Arizona original Ira Fulton is still moving full steam ahead. At 80, the founder and chairman of Tempe-based Fulton Homes is lively, outspoken, determined and busy. He still goes to the office daily and puts in long hours.
Despite being forced into bankruptcy in 2009, Fulton Homes is one of the Valley's top homebuilders. Last year, it out-sold every local competitor in terms of sales per subdivision.
Fulton also is involved in his Fulton Family Foundation, which has made him well-known as a philanthropist and a champion of higher education. The foundation has contributed millions to Arizona State University, Utah's Brigham Young University and several other non-profits.
Fulton recently donated $2.5 million to Barrow Neurological Institute at St. Joseph's Hospital and Medical Center in Phoenix to create the Gregory W. Fulton ALS and Neuromuscular Disorders Center. Greg Fulton, Ira's son, was diagnosed with amyotrophic lateral sclerosis, also known as Lou Gehrig's disease, in 2008 and had been a patient at Barrow until his death in November. He was 53.
Ira Fulton sat down with The Republic to offer his views on business, philanthropy, family, faith and legacy.
Q: How actively involved are you in the day-to-day operations of Fulton Homes?
A: Very active. I love it. My wife, the other day, said she's really happy that I'm down to 12 or 14 hours a day.
I have a son who is the chief executive officer. I have a son-in-law who is the chief operating officer. I have a son who is the executive vice president. But if they don't work, they get their butts kicked. Don't let the door hit you on the way out. They're good kids, but this is my wife's and my company, and I want them to earn it. And if they don't earn it, they don't work for Uncle Ira.
Doug Fulton is the chief executive officer. He runs the day-to-day operations. Norm Nicholls does the land buying. One is marketing and one is construction, and it works out very well. And if they don't agree, then I step in.
Q: When and how did philanthropy and charitable giving become such an important part of your life?
A: With my mother. When I was a boy, we had a little hamburger stand in Tempe. I was the dishwasher. I was the youngest. And my mother would not turn away anyone who was hungry. I would say, "We can't afford to do this." But she would say, "Son, they're hungry." And I shut up because she's my mom. I learned the principles of giving, and I didn't even know it. My mother was a very generous lady.
Q: What is the state of philanthropy in the U.S.? Are successful companies and individuals giving away as much as they should?
A: No. I'm on their fanny all the time. I'll tell couples, "When was the last time you saw a Brinks truck at a funeral procession?" I tell them how I said to my mother, before she died, that I figured I'd take it with me. She said, "How?" I said, "Traveler's checks," and she hit me.
I have a real hard time trying to explain to people that you don't just leave it to your kids. Give them a good education if they earn it and deserve it. But don't just give it to them -- you might as well just throw it away. Do something with it. Help them be successful. If they want to go into business, help them be successful. If they want a good education, help them be successful in the areas they want to pursue.
Q: What is the role of family in your life?
A: Family is your cornerstone. Without a family, you really don't get the proper guidance that you need growing up. Did I get my fanny kicked a lot for talking back? Yes. I had strong people helping me achieve where I am today. I didn't make my first million dollars until I was 44. And since then, I've made over a billion dollars. Do you know why? I stopped chasing the dollar, and I learned to use my talents better.
Q: How has your faith influenced you in your personal and professional life?
A: A lot. Because I was raised that there was good and bad, good and evil. When you think evil is good and good is evil, you're in trouble. Why I didn't screw up more is beyond me. My mother always made me go to church on Sunday. I couldn't go out and play. I had to stay in the house. And if they caught me up playing and I didn't go to church, then I didn't get to eat one meal. So they had strict rules. They didn't want me beating the system. I always tried, and I always got caught. And I always paid the consequence.
My church is very, very important to me. I don't care if you're Catholic or Baptist or Jewish. If you live your religion and really abide by what they teach you, you will have a good foundation in life. It just happens to be that I am a Latter-day Saints (member). That's the religion I believe is right. But I sit on this Catholic board -- the only Mormon on it -- and sitting over on that Catholic board I feel comfortable. They're good people. They're God-fearing.
Q: What would you like your legacy to be?
A: The greatest legacy I can leave behind is my students, to help them get an education. There is no greater achievement. I probably, between all my colleges, have fixed 7,000 or 8,000 either with books, dinners, travel or different types of scholarships. ... I have a foundation named after my family, and at the ASU College of Engineering, we have the Fulton Center. Up at BYU, we have $4 or $5 million in scholarships. We want to help people to achieve their dream. If you can dream it, you can create it. You can formulate it and make it happen.
by J. Craig Anderson - Mar. 3, 2012 04:22 PM The Republic|azcentral.com
Fulton, 80, still building his legacy
Tuesday, March 6, 2012
$13.6 mil award in lawsuit vs. homebuilder
An arbitration panel has awarded $13.6 million to the owners of 460 Sun City Grand homes in one of the largest construction-defect cases in Arizona history.
The case against developer Del Webb Communities Inc., a subsidiary of PulteGroup Inc., began in 2008 with about 1,100 households. With close to 10,000 homes in the Surprise retirement community, the plaintiffs list, which includes Surprise Mayor Sharon Wolcott, makes up about 10 percent of the population.
Attorney Stephen Weber said that 413 of the households could not join the arbitration for legal reasons and are awaiting a trial date in Maricopa County Superior Court. That case is expected to go to court later this year or early in 2013.
After four years, some plaintiffs dropped out, some sold their houses and some died waiting for the legal system to run its course. That left 873 households.
"That was definitely a problem, taking four years when you have a senior community," said Weber, who is with the Phoenix firm Kasdan Simonds Weber & Vaughan.
The final arbitration awards released on Thursday ranged from several thousand dollars to close to $100,000 each for homeowners who moved into the affluent retirement community, only to find cracks forming in walls, floors and ceilings.
The $13.6 million award includes $7.9 million in damages and $5.7 million in legal fees and costs. The homeowners had asked for close to $50 million. Pulte attorneys had argued that the home repairs should total about $2 million.
James Zeumer, a vice president of PulteGroup, insisted that Del Webb had acknowledged that many homes involved in the case did need to be fixed. He said the company had been willing to make appropriate repairs but could not once the suit was filed.
"We plan to challenge this award in state court, as we believe several items are unacceptable, including the decision to award attorneys and experts nearly as much as the homeowners," he added.
Weber said that any challenge would be a "frivolous" suit since arbitration awards can be appealed only for a narrow set of criteria that focuses on corruption and bias.
Del Webb, which merged with Pulte Homes in 2001, began constructing Sun City Grand homes in the 1990s. Homeowners who spotted construction problems did not bring in attorneys until 2006. Given legal limitations, that meant that some homes already were too old for the case. Weber said the group filed under an implied eight-year warranty on new homes.
Del Webb/Pulte Homes sent out letters when the case started in 2008, warning homeowners that "greed too often is the motive" for construction-defect attorneys with "unhappy homeowners too often the result."
Weber said that the company had time to repair the homes before the case moved forward, but they failed to do so.
by Lesley Wright - Mar. 5, 2012 06:55 PM The Republic | azcentral.com
$13.6 mil award in lawsuit vs. homebuilder
The case against developer Del Webb Communities Inc., a subsidiary of PulteGroup Inc., began in 2008 with about 1,100 households. With close to 10,000 homes in the Surprise retirement community, the plaintiffs list, which includes Surprise Mayor Sharon Wolcott, makes up about 10 percent of the population.
Attorney Stephen Weber said that 413 of the households could not join the arbitration for legal reasons and are awaiting a trial date in Maricopa County Superior Court. That case is expected to go to court later this year or early in 2013.
After four years, some plaintiffs dropped out, some sold their houses and some died waiting for the legal system to run its course. That left 873 households.
"That was definitely a problem, taking four years when you have a senior community," said Weber, who is with the Phoenix firm Kasdan Simonds Weber & Vaughan.
The final arbitration awards released on Thursday ranged from several thousand dollars to close to $100,000 each for homeowners who moved into the affluent retirement community, only to find cracks forming in walls, floors and ceilings.
The $13.6 million award includes $7.9 million in damages and $5.7 million in legal fees and costs. The homeowners had asked for close to $50 million. Pulte attorneys had argued that the home repairs should total about $2 million.
James Zeumer, a vice president of PulteGroup, insisted that Del Webb had acknowledged that many homes involved in the case did need to be fixed. He said the company had been willing to make appropriate repairs but could not once the suit was filed.
"We plan to challenge this award in state court, as we believe several items are unacceptable, including the decision to award attorneys and experts nearly as much as the homeowners," he added.
Weber said that any challenge would be a "frivolous" suit since arbitration awards can be appealed only for a narrow set of criteria that focuses on corruption and bias.
Del Webb, which merged with Pulte Homes in 2001, began constructing Sun City Grand homes in the 1990s. Homeowners who spotted construction problems did not bring in attorneys until 2006. Given legal limitations, that meant that some homes already were too old for the case. Weber said the group filed under an implied eight-year warranty on new homes.
Del Webb/Pulte Homes sent out letters when the case started in 2008, warning homeowners that "greed too often is the motive" for construction-defect attorneys with "unhappy homeowners too often the result."
Weber said that the company had time to repair the homes before the case moved forward, but they failed to do so.
by Lesley Wright - Mar. 5, 2012 06:55 PM The Republic | azcentral.com
$13.6 mil award in lawsuit vs. homebuilder
Friday, February 24, 2012
Expert: Building jobs on rebound
Construction employment is on the rise in Arizona and across the U.S., according to an economist who spoke Tuesday at a national construction-industry convention in Phoenix.
In 2011, Arizona construction jobs increased by 1.6 percent, the 11th-highest increase among the 50 states and the District of Columbia, according to Anirban Basu, chief economist for Arlington, Va.-based trade group Associated Builders and Contractors Inc.
The top-ranked state in 2011 for construction-job growth was North Dakota, where employment increased by 5.7 percent, due primarily to energy-related projects, Basu said.
Basu was among a group of economists, journalists and industry leaders who spoke at the 2012 BizCon convention, held Tuesday and Wednesday at the Arizona Biltmore hotel in Phoenix.
"The construction industry is now beginning to recover," he said.
Basu pointed to three key indicators of the construction industry's health, all of which have turned positive in recent months.
Construction employment had been on the rise in early 2011 but began to decrease in the summer, an aftershock from what Basu described as a "soft patch" in the nation's economic recovery, caused by high gas and food prices and a bitter fight in Congress over raising the debt ceiling.
The downward trend ended in November, and construction employment has since increased nationwide, he said.
"Construction is adding jobs in the country again," Basu said.
Another key indicator known as the Construction Backlog Index showed considerable recovery in 2011, he said, although it ended the year down slightly from its annual peak.
The index, which Associated Builders and Contractors releases quarterly, is an average of the backlog of work all U.S. construction companies have accrued, measured in months. An increase in the backlog is a sign of improvement.
In the fourth quarter, the reported index was 7.8 months, Basu said, down slightly from 8.1 months in both the second and third quarters but up 10.9 percent compared with the fourth quarter of 2010.
The third key indicator, known as the Architecture Billings Index, measures changes in the average amount of money architectural firms bill clients in a given month.
The American Institute of Architects, a Washington, D.C.-based trade group, reported slight architecture-billings increases in November and December following several months of decline.
Architecture billings are significant because they are a reliable leading indicator of future construction work, Basu said. He described the boost in economic indicators as a positive, early sign of recovery but said the industry still has a long way to go.
"We are on the mend," Basu said.
by J. Craig Anderson - Feb. 22, 2012 05:27 PM The Republic | azcentral.com
Expert: Building jobs on rebound
In 2011, Arizona construction jobs increased by 1.6 percent, the 11th-highest increase among the 50 states and the District of Columbia, according to Anirban Basu, chief economist for Arlington, Va.-based trade group Associated Builders and Contractors Inc.
The top-ranked state in 2011 for construction-job growth was North Dakota, where employment increased by 5.7 percent, due primarily to energy-related projects, Basu said.
Basu was among a group of economists, journalists and industry leaders who spoke at the 2012 BizCon convention, held Tuesday and Wednesday at the Arizona Biltmore hotel in Phoenix.
"The construction industry is now beginning to recover," he said.
Basu pointed to three key indicators of the construction industry's health, all of which have turned positive in recent months.
Construction employment had been on the rise in early 2011 but began to decrease in the summer, an aftershock from what Basu described as a "soft patch" in the nation's economic recovery, caused by high gas and food prices and a bitter fight in Congress over raising the debt ceiling.
The downward trend ended in November, and construction employment has since increased nationwide, he said.
"Construction is adding jobs in the country again," Basu said.
Another key indicator known as the Construction Backlog Index showed considerable recovery in 2011, he said, although it ended the year down slightly from its annual peak.
The index, which Associated Builders and Contractors releases quarterly, is an average of the backlog of work all U.S. construction companies have accrued, measured in months. An increase in the backlog is a sign of improvement.
In the fourth quarter, the reported index was 7.8 months, Basu said, down slightly from 8.1 months in both the second and third quarters but up 10.9 percent compared with the fourth quarter of 2010.
The third key indicator, known as the Architecture Billings Index, measures changes in the average amount of money architectural firms bill clients in a given month.
The American Institute of Architects, a Washington, D.C.-based trade group, reported slight architecture-billings increases in November and December following several months of decline.
Architecture billings are significant because they are a reliable leading indicator of future construction work, Basu said. He described the boost in economic indicators as a positive, early sign of recovery but said the industry still has a long way to go.
"We are on the mend," Basu said.
by J. Craig Anderson - Feb. 22, 2012 05:27 PM The Republic | azcentral.com
Expert: Building jobs on rebound
Wednesday, February 15, 2012
Builder Sentiment Up Again « Eye on Housing
The NAHB/Wells Fargo Housing Market Index (HMI) increased four points in February to 29, the highest level since April 2007. The increase marks the fifth consecutive month of an increase for a total of 15 points since recording a 14 in September 2011. All three components also recorded levels not seen since early 2007. The current and future sales components both increased six points to 31 and 35 respectively. The traffic component rose two points to 23. Three of the four regional indexes rose while the South indicator fell two points to 26. The steady increase in the HMI supports other consistent positive advances in housing indicators including an eight consecutive month rise in three-month moving average housing starts, a similar steady climb in single-family housing permits, and a five month rise in the NAHB/First American Improving Markets Index. The HMI closely tracks single-family housing starts over its history and NAHB expects single-family starts to rise slowly in 2012 to 500,000, a 16% improvement over 2011. The improvements will be scattered and strongest in markets where the mid-2000s crash did the least damage to the underlying housing and employment markets. 
by National Association of Home Builders Feb 15, 2012
Builder Sentiment Up Again « Eye on Housing
Thursday, January 19, 2012
Housing Market: Here Are 9 Industry Insiders That Think the Rebound Is for Real
David Crowe, chief economist at the National Association of Home Builders (NAHB), has released a bullish forecast regarding the 2012 Housing market.
He estimates new home sales will increase from 304,000 in 2011 to 360,000 in 2012. Additionally, housing starts will increase by 17% to 709k. Single family homes will also increase by 17% to 501k. Total starts will hit 709k. Crowe also anticipates new home sales will significantly increase in 2013,reports CalculatedRisk.
Of course, NAHB's forecast isn't the only one that matters. Analysts from Merrill Lynch, John Burns, Wells Fargo, Goldman Sachs, Moody's, and Fannie Mae have released forecasts of their own.
Using a table from Calculated Risk, we see the forecast range. Merrill Lynch comes in as the least optimistic for New Home Sales in 2012, predicting 304,000. On the other hand, Moody's anticipates 530,000 new home sales.
For single family home starts, Merrill Lynch again comes in as the most pessimistic of the lot at 427k. Moody's is most optimistic at 687k single family starts.
Business section: Investing ideasSo, which housing stocks are worth a closer look?
For ideas, we collected data on insider transactions and identified a list of housing stocks that have seen significant insider buying over the last six months.
Theoretically, insiders know more about their companies than anyone else. So if they're using their own cash to buy the shares of their employers, you better pay close attention.
Insider executives are optimistic on the outlook of these companies. They seem to think the rebound is for real -- do you agree? (Click here to access free, interactive tools to analyze these ideas.)
1. PulteGroup (NYSE: PHM ) : Engages in homebuilding and financial services businesses primarily in the United States. Over the last six months, insiders were net buyers of 93,802 shares, which represents about 0.03% of the company's 336.42M share float.
2. KB Home (NYSE: KBH ) : Operates as a homebuilding and financial services company in the United States. Over the last six months, insiders were net buyers of 36,000 shares, which represents about 0.05% of the company's 65.47M share float.
3. Beazer Homes: Designs, builds, and sells single-family and multi-family homes in the United States. Over the last six months, insiders were net buyers of 88,300 shares, which represents about 0.14% of the company's 62.67M share float.
4. Armstrong World Industries: Engages in the design, manufacture, and sale of flooring products and ceiling systems in the Americas, Europe, and the Pacific Rim. Over the last six months, insiders were net buyers of 16,000 shares, which represents about 0.08% of the company's 20.65M share float.
5. Headwaters (NYSE: HW ) : Provides products, technologies, and services in the building products, construction material, and energy industries primarily in the United States and Canada. Over the last six months, insiders were net buyers of 293,818 shares, which represents about 0.5% of the company's 59.04M share float.
6. Texas Industries: Engages in the production and supply of heavy construction materials in the United States. Over the last six months, insiders were net buyers of 2,744,380 shares, which represents about 20.15% of the company's 13.62M share float.
7. Two Harbors Investment (NYSE: TWO ) : Operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS) and related investments. Over the last six months, insiders were net buyers of 121,000 shares, which represents about 0.09% of the company's 139.68M share float.
8. ARMOUR Residential REIT (NYSE: ARR ) : Over the last six months, insiders were net buyers of 200,000 shares, which represents about 0.25% of the company's 81.27M share float.
9. Campus Crest Communities: Focuses on building, owning, and managing student housing properties in the United States. Over the last six months, insiders were net buyers of 12,525 shares, which represents about 0.04% of the company's 30.58M share float.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
January 18, 2012
Housing Market: Here Are 9 Industry Insiders That Think the Rebound Is for Real
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