Thursday, September 10, 2009

Builders Resurface

Builders are back!

New home builders in the metro Phoenix area can arguably be blamed for some of the mess we're all in. Many people do argue that, in fact: builders overbuilt, didn't stop building spec homes quickly enough when buyer demand flagged in 2006 and allowed investor owners whose tenants dragged down property values. Blame builders if you like but in today's New Normal, they're back.

We have been working with about a 1/2 dozen first time buyers lately. Two in the last 2 weeks have opted to buy from a new home builder. Our folks chose Pulte and Shea, two of the biggies with lots of gold stars on the national customer service satisfaction rankings. One buyer will be in Northwest Peoria, the other in Tartesso, waaaay out beyond the White Tank Mountains and beyond Verrado (about 12 miles east of the Palo Verde nucelar power plant).

Spoke recently with our broker, who's reporting the same is happening with her first time buyers in the far Southeast Valley, in Queen Creek and other SE bedroom communities like Florence and Casa Grande.

Builders are offering incentives of 3% to $8,000 or more to use lender and title people. They're throwing in upgrades for free, and some are eveing offering Rent-To-Own programs. Any readers heard of super enticing builder incentives? Anyone considering buying a new build? Or not? We'd love to hear your comments.