Arizona Homebuilder

ArizonaHomebuilder

AZBUILD

February | March 2017

Pavona Home Design at Robson Ranch Arizona A Robson Resort Community | Luxury Active Adult Living Produced by DLP Marketing • (480)460-0996 • DLPmarketing.com

Robson Ranch Redefines 55+ Living Recently named Best 55+ Builder of the Year by the National Association of Home Builders, Robson Communities has been redefining luxury 55+ living with innovative and award-winning home designs and lavish resort-style amenities for five decades.

One of the latest Robson Resort Communities, Robson Ranch Arizona, launched in 2005, fulfills the housing demands for active adults in the southeast area of metro Phoenix. This gated community features multi-million dollar amenities including: • Ranch House – features a ballroom/auditorium with stage, men’s and women’s dressing rooms, two multi-purpose rooms, a lounge, private dining room and more.

Many homebuilders are complaining about December and early January sales, but the complaints are not cause for worry.

JIM BELFIORE New home sales were higher over the last 30 days than they were during the same President period in any other period in the last 10 Belfiore Consulting years. Builders sold 13% more homes over the last 30 days than they sold in the final half of December 2015 / first half of January 2016 last year. Demand is not the challenge. Demand is growing – unlike home prices. Builders can expect higher volumes in ’17, and if Belfiore analysts are correct, rising prices (finally).

• Robson Ranch Sports Club – resort-style pool and spa, indoor pool with lap lanes, fitness center, dance-yoga-aerobics room, massage and steam rooms, multi-purpose activity rooms, 4 lighted tennis courts and 16 Pickleball courts.

• Robson Ranch Arizona Golf Club – features 18 holes of championship golf with rolling fairways, elevated tees and carefully created natural areas supplemented by strategically located bunkers.

• Creative Arts Center – Featuring a woodcarving studio, sewing & crafts room, quilting studio, ceramics, stained glass and painting and resident art gallery.

• Additional features of Robson Ranch include walking paths, a softball field, dog park, and horseshoe pits.

In addition to the array of amenities, the activities at Robson Ranch are equally as impressive with activities, clubs, classes and events ranging from singing, dancing, and wood carving to book discussion groups, volunteer opportunities, and the annual Pickleball tournament.

Complementing the outstanding amenities and activities are the luxury homes at Robson Ranch. Ranging from 1,286 Sq. Ft. to 2,402 Sq. Ft. and starting from the $160s, each home is built with a commitment to superior quality construction with the highest attention to detail and craftsmanship dedicated to ensuring energyefficiency. The most popular home series at Robson Ranch is the Villa Series, offering the “Lock & Leave”, low maintenance lifestyle. Four Villa plans are available and select plans feature an enclosed courtyard.

Priced from the $160s 5687 N. Robson Blvd., Eloy, AZ 85131

Directions: I-10 and Jimmie Kerr Blvd. in the Casa Grande area

Sales office hours: 9:00AM – 6:00PM Phone: 520-426-3300 Website: www.Robson.com

Demand is Growing...

Prices to Follow

EDWARD J. ROBSON Chairman & CEO Robson Communities, Inc.

“When I go into a clubhouse, homeowners will come up to me and thank me for building a wonderful place to live. It’s rewarding to know that you’ve made a positive impact on people’s lives.”

– Edward J. Robson

December data reflects the continued challenge of getting more money from buyers, at least enough to cover seemingly ever-increasing home construction costs. Despite healthy sales in December, West Valley home prices increased only 0.1% in the 2-month period from late October to late December. North & Northeast builders fared worse, with prices declining 0.4%. Overall, Metro Phoenix average appreciation was just 2.6% through the first 11 months of 2016, and if data being analyzed now holds true, appreciation on the year was just 2.6% or 2.7% total.

Coupled with 2015, builders have only increased prices 5.6% to 5.7% over the last 2 years while construction costs have risen, per Belfiore builder sources, 25% to 30%. Wow! Builder margins are cause for “big-time” concern, particularly given that they are running out of lots on which to build homes.

Belfiore believes relief is coming. Builders will raise prices in 2017; they must raise prices in order to replace land supplies. Belfiore is projecting 6% to 8% appreciation this year, followed by 5% to 7% appreciation next year.

The buyers are here and their numbers are likely to continue to grow, as recognition of the new U.S. mortgage interest rate environment sets in with more home shoppers this spring. Price increases, coupled with mortgage interest rates will put more pressure on home shoppers to convert to homebuyers this year, Belfiore believes. The result is expected to be 15% to 16% more new home sales this year. Fewer homebuilders are expected to be complaining this December than last.

A total of 17,046 new home permits were issued in the first 11 months of 2016, 10% more than during the same period in 2015, per the US Census. In 2015, 45% more permits were issued than in 2014. When the final figures are tallied, builders will have pulled a total of around 18,300 permits in 2016. Belfiore’s permit forecast calls for 21,200 this year, 25,300 in 2018, and 26,000 in 2019.

For additional insight, call Jim at Belfiore Real Estate Consulting, (480) 706-1002, or visit www.BelfioreConsulting.com.

Loan Limit Increase CHARITY MORELAND

The famous Olympian and fastest man in the world, Usain Bolt, said, “I don’t think limits.” The same cannot be said for mortgage financing.

There are some limits on maximum loan amounts when purchasing or refinancing a home. The largest purchaser of mortgage backed securities, National Builder Fannie Mae and Freddie Mac, set limits on an annual basis for the maximum Sales Manager loan amounts they will purchase from any lender, like Homeowners Financial Homeowners Financial Group Group. Loan amounts that do not exceed these “Conforming Loan Limits” generally provide the most competitive interest rates which translate to lower monthly payments than loans that exceed these amounts.

Unchanged since 2006, the limits increased January 2017 to $424,100. A loan amount of $425,000, just $900 more, could carry an interest rate of 0.5% higher and hundreds of dollars more per month. If buyers want to purchase in a ‘High Cost’ area as determined by FHFA, those have increased as high as $636,150.

Needing a government insured loan through the FHA? Those increased also! Varying by County, the new FHA maximum loan amount is $275,665 or up to $636,150 for those high cost areas like Northern or Southern California. If you are curious about the limit in your area, you can search by county at the following website: entp.hud.gov/idapp/html/hicostlook.cfm.

There are a lot of limits, or guidelines, when it comes to mortgage financing and we don’t expect you to know them all. While we do our best to keep you as informed as possible, a quick phone call or email will allow us to provide more detailed guidance to meet your specific needs. At HFG, we take pride in being industry experts and look forward to assisting your mortgage needs.

Robson Ranch Redefines 55+ Living Recently named Best 55+ Builder of the Year by the National Association of Home Builders, Robson Communities has been redefining luxury 55+ living with innovative and award-winning home designs and lavish resort-style amenities for five decades.

One of the latest Robson Resort Communities, Robson Ranch Arizona, launched in 2005, fulfills the housing demands for active adults in the southeast area of metro Phoenix. This gated community features multi-million dollar amenities including: • Ranch House – features a ballroom/auditorium with stage, men’s and women’s dressing rooms, two multi-purpose rooms, a lounge, private dining room and more.

Many homebuilders are complaining about December and early January sales, but the complaints are not cause for worry.

JIM BELFIORE New home sales were higher over the last 30 days than they were during the same President period in any other period in the last 10 Belfiore Consulting years. Builders sold 13% more homes over the last 30 days than they sold in the final half of December 2015 / first half of January 2016 last year. Demand is not the challenge. Demand is growing – unlike home prices. Builders can expect higher volumes in ’17, and if Belfiore analysts are correct, rising prices (finally).

• Robson Ranch Sports Club – resort-style pool and spa, indoor pool with lap lanes, fitness center, dance-yoga-aerobics room, massage and steam rooms, multi-purpose activity rooms, 4 lighted tennis courts and 16 Pickleball courts.

• Robson Ranch Arizona Golf Club – features 18 holes of championship golf with rolling fairways, elevated tees and carefully created natural areas supplemented by strategically located bunkers.

• Creative Arts Center – Featuring a woodcarving studio, sewing & crafts room, quilting studio, ceramics, stained glass and painting and resident art gallery.

• Additional features of Robson Ranch include walking paths, a softball field, dog park, and horseshoe pits.

In addition to the array of amenities, the activities at Robson Ranch are equally as impressive with activities, clubs, classes and events ranging from singing, dancing, and wood carving to book discussion groups, volunteer opportunities, and the annual Pickleball tournament.

Complementing the outstanding amenities and activities are the luxury homes at Robson Ranch. Ranging from 1,286 Sq. Ft. to 2,402 Sq. Ft. and starting from the $160s, each home is built with a commitment to superior quality construction with the highest attention to detail and craftsmanship dedicated to ensuring energyefficiency. The most popular home series at Robson Ranch is the Villa Series, offering the “Lock & Leave”, low maintenance lifestyle. Four Villa plans are available and select plans feature an enclosed courtyard.

Priced from the $160s 5687 N. Robson Blvd., Eloy, AZ 85131

Directions: I-10 and Jimmie Kerr Blvd. in the Casa Grande area

Sales office hours: 9:00AM – 6:00PM Phone: 520-426-3300 Website: www.Robson.com

Demand is Growing...

Prices to Follow

EDWARD J. ROBSON Chairman & CEO Robson Communities, Inc.

“When I go into a clubhouse, homeowners will come up to me and thank me for building a wonderful place to live. It’s rewarding to know that you’ve made a positive impact on people’s lives.”

– Edward J. Robson

December data reflects the continued challenge of getting more money from buyers, at least enough to cover seemingly ever-increasing home construction costs. Despite healthy sales in December, West Valley home prices increased only 0.1% in the 2-month period from late October to late December. North & Northeast builders fared worse, with prices declining 0.4%. Overall, Metro Phoenix average appreciation was just 2.6% through the first 11 months of 2016, and if data being analyzed now holds true, appreciation on the year was just 2.6% or 2.7% total.

Coupled with 2015, builders have only increased prices 5.6% to 5.7% over the last 2 years while construction costs have risen, per Belfiore builder sources, 25% to 30%. Wow! Builder margins are cause for “big-time” concern, particularly given that they are running out of lots on which to build homes.

Belfiore believes relief is coming. Builders will raise prices in 2017; they must raise prices in order to replace land supplies. Belfiore is projecting 6% to 8% appreciation this year, followed by 5% to 7% appreciation next year.

The buyers are here and their numbers are likely to continue to grow, as recognition of the new U.S. mortgage interest rate environment sets in with more home shoppers this spring. Price increases, coupled with mortgage interest rates will put more pressure on home shoppers to convert to homebuyers this year, Belfiore believes. The result is expected to be 15% to 16% more new home sales this year. Fewer homebuilders are expected to be complaining this December than last.

A total of 17,046 new home permits were issued in the first 11 months of 2016, 10% more than during the same period in 2015, per the US Census. In 2015, 45% more permits were issued than in 2014. When the final figures are tallied, builders will have pulled a total of around 18,300 permits in 2016. Belfiore’s permit forecast calls for 21,200 this year, 25,300 in 2018, and 26,000 in 2019.

For additional insight, call Jim at Belfiore Real Estate Consulting, (480) 706-1002, or visit www.BelfioreConsulting.com.

Loan Limit Increase CHARITY MORELAND

The famous Olympian and fastest man in the world, Usain Bolt, said, “I don’t think limits.” The same cannot be said for mortgage financing.

There are some limits on maximum loan amounts when purchasing or refinancing a home. The largest purchaser of mortgage backed securities, National Builder Fannie Mae and Freddie Mac, set limits on an annual basis for the maximum Sales Manager loan amounts they will purchase from any lender, like Homeowners Financial Homeowners Financial Group Group. Loan amounts that do not exceed these “Conforming Loan Limits” generally provide the most competitive interest rates which translate to lower monthly payments than loans that exceed these amounts.

Unchanged since 2006, the limits increased January 2017 to $424,100. A loan amount of $425,000, just $900 more, could carry an interest rate of 0.5% higher and hundreds of dollars more per month. If buyers want to purchase in a ‘High Cost’ area as determined by FHFA, those have increased as high as $636,150.

Needing a government insured loan through the FHA? Those increased also! Varying by County, the new FHA maximum loan amount is $275,665 or up to $636,150 for those high cost areas like Northern or Southern California. If you are curious about the limit in your area, you can search by county at the following website: entp.hud.gov/idapp/html/hicostlook.cfm.

There are a lot of limits, or guidelines, when it comes to mortgage financing and we don’t expect you to know them all. While we do our best to keep you as informed as possible, a quick phone call or email will allow us to provide more detailed guidance to meet your specific needs. At HFG, we take pride in being industry experts and look forward to assisting your mortgage needs.

ArizonaHomebuilder

AZBUILD

February | March 2017

Pavona Home Design at Robson Ranch Arizona A Robson Resort Community | Luxury Active Adult Living Produced by DLP Marketing • (480)460-0996 • DLPmarketing.com