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AZBUILD

OCTOBER | NOVEMBER

2015

ArizonaHomebuilder

You’re an Arizona Builder, We’re an Arizona Lender.

BILL ROGERS Founder & CEO of Homeowners Financial Group

“As an Arizona based lender we always welcome and

EXPERIENCE THE HFG DIFFERENCE

recognize the value of working with builders who are

with local and in-house Processing,

building Arizona communities. Working with other local

Underwriting & Funding. Call us

companies helps Arizona to build stronger communities.”

today to find out how we can help

-Bill Rogers, CEO of Homeowners Financial Group

you sell more homes and give your clients better service!

Corporate Office | 16427 N. Scottsdale Rd. Suite #145 | Scottsdale, AZ 85254 | www.homeownersfg.com | 480.305.8550 All loan products and loan amounts may not be available in your area and are subject to credit and property approval pursuant to guidelines. Information is subject to change without prior notice. Other restrictions and limitations may apply. Homeowners Financial Group USA, LLC is licensed in AZ: Mortgage Bankers License No. BK 0906222, NMLS#93718; CA: Department of Business Oversight under the Finance Lenders Law License No. 603 F033; ID: Mortgage Broker/Lender License MBL-5879; NM: New Mexico Mortgage Loan Company License 03068; ND Money Broker License MB102538; OR Mortgage Lending License ML-5229 WA: Consumer Loan Company License CL-93718; MN: Residential Mortgage Originator License MN-MO-93718; MT: Mortgage Broker/Lender License 93718; NE: Mortgage Banker License NE93718 and registered in CO: Mortgage Company Registration.

Produced by Desert Lifestyle Publishing • 480.460.0996 • www.DesertLifestyle.net

Dean Selvey RE/MAX Excalibur Realty for Bela Flor Communities

DEVELOPER SPOTLIGHT BELFIORE MARKET OVERVIEW FINANCE CORNER


TRID is Finally Happening!

Building Success With Value, Quality, Technology & Financing Options To spell success in the Arizona real estate market, real estate development firm Bela Flor Communities has sold 90 units of their 124-unit development in the luxury and affordable gated condominium community of Villa Rialto, located at 7726 East Baseline Road in Mesa, Arizona. Villa Rialto development aims to truly set itself apart with forward-thinking technology features and high quality upgrades. Buyers have extensive financing options to select their new innovative condos, which are located conveniently at Baseline near the junction of Loop 202 and I-60 in the southeast Valley. It offers easy access to Superstition Springs Mall, Costco, golf courses, lakes, and sought-after East Valley destinations. “Smart home technology has become increasingly attractive for today’s buyer,” said Hudd Hassell, real estate developer at Bela Flor. “Our technology upgrade includes Tru Tankless water heaters and Nest Learning Thermostats, both of which allow homeowners to adjust settings and monitor usage from anywhere in the world via an iOS or Android mobile device. It helps us offer a truly hassle-free ‘lock-and-leave’ lifestyle, which is very appealing, especially for homeowners who travel a lot.” In addition to the smart home “lock and leave” lifestyle, Villa Rialto offers buyers highly sought after amenities like gated access, free communitywide WiFi, a heated pool, clubhouse outfitted with an entertainment kitchen, fitness center and attached garages. The community is conveniently located near the Loop 202 and I60 freeways, Superstition Springs Mall, numerous golf courses, hiking, and recreation areas in the East Valley.

The striking competitive advantage is the affordable price point for all of the quality features. Prices start in the mid-$150,000 range. Interior features include gourmet kitchens with solid slab granite countertops, stainless steel appliances, 9-foot ceilings, 8-foot entry doors, and 20” ceramic tile flooring as standard. “We’re fortunate to have an array of financing products provided by our mortgage partners at Homeowners Financial Group, the Jeff Williamson Team. It has afforded many deserving buyers an opportunity to purchase their dream home, and that’s the true hallmark of a healthy real estate market, which drives our economy,” states Dean Selvey, of Arizona Builder Sales. Along with the standard VA, FHA and Fannie Mae loans, products offered may be recent foreclosure, short sale and BK loans. Asset based and bank statement loans are also available, as well as first time buyer products like the “Home in 5.” Buyers with low down payments have also been assisted. Bela Flor already has an eye towards the future to break ground on another value crafted community, Bella Victoria, at Ellsworth and US60. With prices starting from the mid$170’s, the 236-unit project is helping to rekindle the market for multifamily developments in Mesa by making features like Tru Tankless and other tech amenities standard. Offering high-tech features is a part of Bela Flor’s strategy to attract discriminating condominium buyers of the future.

“We felt that with the right timing and vision, we could build a community that offered the best quality construction and modern luxury amenities at a tremendous value to today’s homebuyer,” said Hassell. “Everything, from open floor plan layouts to appliances and fixtures, was chosen with these objectives in mind. We feature fabulous community amenities with a heated pool, fitness center and lush green grounds.” Each home has its own direct-access garage as well as features that most builders will charge extra, including 9ft ceilings, satin nickel fans in all rooms, stylish granite countertops, 20” matte finish ceramic tile and 42” maple cabinets with choice of hardware. The upscale development offers nine two- and three-bedroom floor plans, ranging in size from 947 to 1,557 square feet.

DEAN SELVEY

Arizona Builder Sales RE/MAX Excalibur Realty

Please visit http://www.villarialtoaz.com for more informaton or contact: Dean Selvey Arizona Builder Sales LLC | RE/MAX Excalibur Realty Direct: 480-254-6444 | Toll Free: 866-252-2741 www.ArizonaBuilderSales.com Jeff Willamson Team Homeowners Financial Group LLC Direct: 480-305-8589 jcwhomeownersfg.com

JEFF WILLIAMSON

Licensed Mortgage Professional NMLS#236505 Homeowners Financial Group LLC

The Housing Market Rebound Beats the Heat! JIM BELFIORE Belfiore Consulting

This summer, performance of the Metro Phoenix Area housing market exceeded the expectations of industry proponents and analysts; despite humidity and extreme heat, homebuilders have now successfully extended a springtime rally into the school season.

Incongruent with years past, high buyer demand persisted throughout July and August, bringing new home subdivision traffic levels to an 8-year high in the Central & South Region and to near year-highs in the West Valley and East Valley regions. Capitalizing on the high traffic levels, Metro Phoenix Area homebuilders sold more homes from mid-July to mid-August than in the 30 days prior, bringing year-over-year sales growth during this period to an astounding 58%. Accordingly, sales have increased substantially on a per subdivision basis, to 2.7 new homes sold per subdivision as of mid-August, from the 2.0 reported the same time last year. Homebuyer demand is diverse and homes are now selling at all pricing segments. Younger first-time buyers as well as previously unconfident or underfunded middle-aged and older buyers have shown up this spring and summer; even upper-end buyers that have been active throughout the last 3 years have been more willing to shell out $300 to $900 per square foot on luxury condominium and detached homes. On the supply side, new home inventory is within long-term “normal” levels, given the mix of units under construction. Total inventory shot up in July, a result of increased construction times due to labor shortages and larger condominium developments returning to the market; however, 60-day inventory remained in decline, reaching 1,236 homes- its lowest point since December 2013. Construction costs, particularly for framing, plumbing, and HVAC, are of primary concern to Metro Phoenix Area homebuilders who, until recently, had little choice but to absorb increasing labor costs. Yet, thanks to sustained and widespread demand seen this summer, homebuilders are now feeling more confident in their pricing power, raising prices more in the latest month for which data is available than during any one-month period since September 2013. New home prices are up 1.1% this year and Belfiore is now projecting net new build price appreciation of up to 2.0% for 2015. Moreover, this spring and summer, homebuyers were spending more on options and upgrades than during any period in years. Option and upgrade purchases have contributed notably to homebuilder revenues – in the first 7+ months of this year, buyers have spent 30% to 40% on premium features and amenities in several move-up market areas. While the market is expected to begin slowing down with the forthcoming onset of the holiday season, builders’ long-term spirits and expectations should be high given the market’s current strength. Looking forward, homebuilders should focus on providing buyers a robust variety of choices in their products, available options/features, and community amenities. Striving to create unique communities that provide visiting potential homebuyers with stand-out experiences will be paramount for builders to set themselves apart from the competition while maintaining pricing power. For additional insight, call Jim at Belfiore Real Estate Consulting, (480) 706-1002, or visit www.belfioreconsulting.com.

As a kid, the first day of high school was a time of mixed emotions. Moving up to high school brought challenges that made us nervous and we all had to learn a new set of rules, both written and unwritten. On the other hand, there was a feeling of freedom and equality, because every student was working with a clean slate and had a chance to shine and succeed in this new endeavor.

TIM JORDEN

For mortgage lenders, waiting for TRID is a bit like waiting for the Senior Vice President of Sales first day of high school. On one hand, it is exciting to have major Homeowners Financial Group changes and opportunities to outperform the competition. On the other hand, we are all a bit nervous about how these new regulations will affect our business. However, unlike high school, there are no unwritten rules! The rules are clearly spelled out and there is zero tolerance for mistakes in the new TRID world. For months, the Truth in Lending Act and Real Estate Settlement Procedures Act Integrated Disclosures (TRID) has dominated conversations among mortgage lenders. These new disclosures, which go into effect for loan applications that occur on or after October 3, 2015, will change the mortgage landscape for years to come. Some effects that we can expect are included below. Average turn times will be longer for loan closings. For as long as I can remember, an average time for closing a loan was around 30 days. Some closings were much longer and some were done as quickly as 10 days. With TRID, the average closing will likely be closer to 45 days. The regulations that have been imposed over the past 4 years, in conjunction with TRID, make it tougher to close loans quickly. It is still possible to close loans in 30 days or less, but there is little room for error and there can be no delays in ordering appraisals and documenting income and assets. In addition, renegotiations after home inspections or any other changes to the purchase contracts will cause longer delays in closing. Also, the tolerance for errors in estimating closing costs has tightened dramatically. Title companies and lenders will need to ensure the exact costs before disclosing to the borrowers. From a positive standpoint, this is better for the consumer as they will have more accurate estimates than in the past. However, this will likely cause delays in disclosing as lenders will need to take the extra time necessary to verify the exact costs with third parties. All in all, I think that TRID is a step forward and is consumer friendly. Like a freshman on the first day of school, I am both nervous and excited for TRID to start! Tim Jorden is the Senior Vice President of Sales at Homeowners Financial Group and oversees the Arizona Builder Division. He can be reached at TJ@homeownersfg.com.


TRID is Finally Happening!

Building Success With Value, Quality, Technology & Financing Options To spell success in the Arizona real estate market, real estate development firm Bela Flor Communities has sold 90 units of their 124-unit development in the luxury and affordable gated condominium community of Villa Rialto, located at 7726 East Baseline Road in Mesa, Arizona. Villa Rialto development aims to truly set itself apart with forward-thinking technology features and high quality upgrades. Buyers have extensive financing options to select their new innovative condos, which are located conveniently at Baseline near the junction of Loop 202 and I-60 in the southeast Valley. It offers easy access to Superstition Springs Mall, Costco, golf courses, lakes, and sought-after East Valley destinations. “Smart home technology has become increasingly attractive for today’s buyer,” said Hudd Hassell, real estate developer at Bela Flor. “Our technology upgrade includes Tru Tankless water heaters and Nest Learning Thermostats, both of which allow homeowners to adjust settings and monitor usage from anywhere in the world via an iOS or Android mobile device. It helps us offer a truly hassle-free ‘lock-and-leave’ lifestyle, which is very appealing, especially for homeowners who travel a lot.” In addition to the smart home “lock and leave” lifestyle, Villa Rialto offers buyers highly sought after amenities like gated access, free communitywide WiFi, a heated pool, clubhouse outfitted with an entertainment kitchen, fitness center and attached garages. The community is conveniently located near the Loop 202 and I60 freeways, Superstition Springs Mall, numerous golf courses, hiking, and recreation areas in the East Valley.

The striking competitive advantage is the affordable price point for all of the quality features. Prices start in the mid-$150,000 range. Interior features include gourmet kitchens with solid slab granite countertops, stainless steel appliances, 9-foot ceilings, 8-foot entry doors, and 20” ceramic tile flooring as standard. “We’re fortunate to have an array of financing products provided by our mortgage partners at Homeowners Financial Group, the Jeff Williamson Team. It has afforded many deserving buyers an opportunity to purchase their dream home, and that’s the true hallmark of a healthy real estate market, which drives our economy,” states Dean Selvey, of Arizona Builder Sales. Along with the standard VA, FHA and Fannie Mae loans, products offered may be recent foreclosure, short sale and BK loans. Asset based and bank statement loans are also available, as well as first time buyer products like the “Home in 5.” Buyers with low down payments have also been assisted. Bela Flor already has an eye towards the future to break ground on another value crafted community, Bella Victoria, at Ellsworth and US60. With prices starting from the mid$170’s, the 236-unit project is helping to rekindle the market for multifamily developments in Mesa by making features like Tru Tankless and other tech amenities standard. Offering high-tech features is a part of Bela Flor’s strategy to attract discriminating condominium buyers of the future.

“We felt that with the right timing and vision, we could build a community that offered the best quality construction and modern luxury amenities at a tremendous value to today’s homebuyer,” said Hassell. “Everything, from open floor plan layouts to appliances and fixtures, was chosen with these objectives in mind. We feature fabulous community amenities with a heated pool, fitness center and lush green grounds.” Each home has its own direct-access garage as well as features that most builders will charge extra, including 9ft ceilings, satin nickel fans in all rooms, stylish granite countertops, 20” matte finish ceramic tile and 42” maple cabinets with choice of hardware. The upscale development offers nine two- and three-bedroom floor plans, ranging in size from 947 to 1,557 square feet.

DEAN SELVEY

Arizona Builder Sales RE/MAX Excalibur Realty

Please visit http://www.villarialtoaz.com for more informaton or contact: Dean Selvey Arizona Builder Sales LLC | RE/MAX Excalibur Realty Direct: 480-254-6444 | Toll Free: 866-252-2741 www.ArizonaBuilderSales.com Jeff Willamson Team Homeowners Financial Group LLC Direct: 480-305-8589 jcwhomeownersfg.com

JEFF WILLIAMSON

Licensed Mortgage Professional NMLS#236505 Homeowners Financial Group LLC

The Housing Market Rebound Beats the Heat! JIM BELFIORE Belfiore Consulting

This summer, performance of the Metro Phoenix Area housing market exceeded the expectations of industry proponents and analysts; despite humidity and extreme heat, homebuilders have now successfully extended a springtime rally into the school season.

Incongruent with years past, high buyer demand persisted throughout July and August, bringing new home subdivision traffic levels to an 8-year high in the Central & South Region and to near year-highs in the West Valley and East Valley regions. Capitalizing on the high traffic levels, Metro Phoenix Area homebuilders sold more homes from mid-July to mid-August than in the 30 days prior, bringing year-over-year sales growth during this period to an astounding 58%. Accordingly, sales have increased substantially on a per subdivision basis, to 2.7 new homes sold per subdivision as of mid-August, from the 2.0 reported the same time last year. Homebuyer demand is diverse and homes are now selling at all pricing segments. Younger first-time buyers as well as previously unconfident or underfunded middle-aged and older buyers have shown up this spring and summer; even upper-end buyers that have been active throughout the last 3 years have been more willing to shell out $300 to $900 per square foot on luxury condominium and detached homes. On the supply side, new home inventory is within long-term “normal” levels, given the mix of units under construction. Total inventory shot up in July, a result of increased construction times due to labor shortages and larger condominium developments returning to the market; however, 60-day inventory remained in decline, reaching 1,236 homes- its lowest point since December 2013. Construction costs, particularly for framing, plumbing, and HVAC, are of primary concern to Metro Phoenix Area homebuilders who, until recently, had little choice but to absorb increasing labor costs. Yet, thanks to sustained and widespread demand seen this summer, homebuilders are now feeling more confident in their pricing power, raising prices more in the latest month for which data is available than during any one-month period since September 2013. New home prices are up 1.1% this year and Belfiore is now projecting net new build price appreciation of up to 2.0% for 2015. Moreover, this spring and summer, homebuyers were spending more on options and upgrades than during any period in years. Option and upgrade purchases have contributed notably to homebuilder revenues – in the first 7+ months of this year, buyers have spent 30% to 40% on premium features and amenities in several move-up market areas. While the market is expected to begin slowing down with the forthcoming onset of the holiday season, builders’ long-term spirits and expectations should be high given the market’s current strength. Looking forward, homebuilders should focus on providing buyers a robust variety of choices in their products, available options/features, and community amenities. Striving to create unique communities that provide visiting potential homebuyers with stand-out experiences will be paramount for builders to set themselves apart from the competition while maintaining pricing power. For additional insight, call Jim at Belfiore Real Estate Consulting, (480) 706-1002, or visit www.belfioreconsulting.com.

As a kid, the first day of high school was a time of mixed emotions. Moving up to high school brought challenges that made us nervous and we all had to learn a new set of rules, both written and unwritten. On the other hand, there was a feeling of freedom and equality, because every student was working with a clean slate and had a chance to shine and succeed in this new endeavor.

TIM JORDEN

For mortgage lenders, waiting for TRID is a bit like waiting for the Senior Vice President of Sales first day of high school. On one hand, it is exciting to have major Homeowners Financial Group changes and opportunities to outperform the competition. On the other hand, we are all a bit nervous about how these new regulations will affect our business. However, unlike high school, there are no unwritten rules! The rules are clearly spelled out and there is zero tolerance for mistakes in the new TRID world. For months, the Truth in Lending Act and Real Estate Settlement Procedures Act Integrated Disclosures (TRID) has dominated conversations among mortgage lenders. These new disclosures, which go into effect for loan applications that occur on or after October 3, 2015, will change the mortgage landscape for years to come. Some effects that we can expect are included below. Average turn times will be longer for loan closings. For as long as I can remember, an average time for closing a loan was around 30 days. Some closings were much longer and some were done as quickly as 10 days. With TRID, the average closing will likely be closer to 45 days. The regulations that have been imposed over the past 4 years, in conjunction with TRID, make it tougher to close loans quickly. It is still possible to close loans in 30 days or less, but there is little room for error and there can be no delays in ordering appraisals and documenting income and assets. In addition, renegotiations after home inspections or any other changes to the purchase contracts will cause longer delays in closing. Also, the tolerance for errors in estimating closing costs has tightened dramatically. Title companies and lenders will need to ensure the exact costs before disclosing to the borrowers. From a positive standpoint, this is better for the consumer as they will have more accurate estimates than in the past. However, this will likely cause delays in disclosing as lenders will need to take the extra time necessary to verify the exact costs with third parties. All in all, I think that TRID is a step forward and is consumer friendly. Like a freshman on the first day of school, I am both nervous and excited for TRID to start! Tim Jorden is the Senior Vice President of Sales at Homeowners Financial Group and oversees the Arizona Builder Division. He can be reached at TJ@homeownersfg.com.


AZBUILD

OCTOBER | NOVEMBER

2015

ArizonaHomebuilder

You’re an Arizona Builder, We’re an Arizona Lender.

BILL ROGERS Founder & CEO of Homeowners Financial Group

“As an Arizona based lender we always welcome and

EXPERIENCE THE HFG DIFFERENCE

recognize the value of working with builders who are

with local and in-house Processing,

building Arizona communities. Working with other local

Underwriting & Funding. Call us

companies helps Arizona to build stronger communities.”

today to find out how we can help

-Bill Rogers, CEO of Homeowners Financial Group

you sell more homes and give your clients better service!

Corporate Office | 16427 N. Scottsdale Rd. Suite #145 | Scottsdale, AZ 85254 | www.homeownersfg.com | 480.305.8550 All loan products and loan amounts may not be available in your area and are subject to credit and property approval pursuant to guidelines. Information is subject to change without prior notice. Other restrictions and limitations may apply. Homeowners Financial Group USA, LLC is licensed in AZ: Mortgage Bankers License No. BK 0906222, NMLS#93718; CA: Department of Business Oversight under the Finance Lenders Law License No. 603 F033; ID: Mortgage Broker/Lender License MBL-5879; NM: New Mexico Mortgage Loan Company License 03068; ND Money Broker License MB102538; OR Mortgage Lending License ML-5229 WA: Consumer Loan Company License CL-93718; MN: Residential Mortgage Originator License MN-MO-93718; MT: Mortgage Broker/Lender License 93718; NE: Mortgage Banker License NE93718 and registered in CO: Mortgage Company Registration.

Produced by Desert Lifestyle Publishing • 480.460.0996 • www.DesertLifestyle.net

Dean Selvey RE/MAX Excalibur Realty for Bela Flor Communities

DEVELOPER SPOTLIGHT BELFIORE MARKET OVERVIEW FINANCE CORNER

Arizona Homebuilder | October-November 2015  

real estate