Home Builder Sentiment Rises
It is intersting to note that, though this aricle shows a 1% rise in home builder sentiment, it souldn’t be perceived as a the beginning of a major shift. What is does show is a temporary halt to the huge declines in home builder sentiment over the past couple of years.
DR Horton, one of the top new home builders in the country, feels that economic pressures need to ease before there will be a serious change. They are currently predicitng thyat it will take at least until 2012 for buyers to fully return to this market.
In Maricopa Arizona, most of the new home builders left town when our market collpsed in 2006. A few have returned since then and are having mixed success at selling their homes. The obvious problem is the high level of short sales and foreclosures abailable, numbers that are being added to every day. Though some buyers are still drawn by the allure of owning a brand new home, most cannot justify the higher price points as the oldest subdivision homes in Maricopa Arizona were built in 2002 and are relatively new.
Since we have hundreds of acres of partially developed and undeveoped land within our community, I expect that once the inventory of distressed homes begins to decline, the builders will return in force. The Greater Phoenix area will always be a draw to seasonal buyers looking for a retirement home. Since there are limited areas close to the city’s core that have growth potential. Maricopa Arizona is well positioned to take advantage when the economy turns around.
