ArizonaHomebuilder
AZBUILD
DECEMBER | JANUARY 2017
You’re an Arizona Builder, We’re an Arizona Lender.
BILL ROGERS CEO Founder & CEO of Homeowners Financial Group Financial
“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!
Homeowners Financial Group is a co-founder of Care Fund, a nonprofit organization providing housing expense relief to Arizona families during their child’s extended illness or injury. We strongly believe a parent should never have to choose between working to pay for their housing or caring for their child. For more information on what you can do to get involved, visit thecarefund.org
Corporate Office | 16427 N. Scottsdale Rd. Suite #145 | Scottsdale, AZ 85254 | www.homeownersfg.com | 480.305.8550 This is not a commitment to engage in a loan transaction. All loan products and loan amounts may not be available in your area and are subject to credit and property approval pursuant to agency and investor guidelines. Information, rates and programs are subject to change without prior notice. Some products may not be offered directly by Homeowners Financial Group USA, LLC (HFG) but are offered through a lender with whom HFG has a business relationship. Other restrictions and limitations may apply. NMLS#93718 Homeowners Financial Group USA, LLC is licensed in AZ: BK 0906222; CA: CRMLA 4131292; FL: MLD1186; IA: MB 2014-0099; ID: MBL-5879; IL: MB.6761024; MN: MN-MO-93718; MT: MB/ML 93718; NC: L-166403; ND: MB102538; NE: NE93718; NM: ML-03068; NV: 4255; OH: MB.850255; OR: ML-5229; SD: ML 05089; WA: CL-93718; WI: 93718BA/BR; and registered in CO. • 480.460.0996 • www.DesertLifestyle.net Produced by DLP Marketing • (480)460-0996 • DLPmarketing.com Produced by Desert Lifestyle Publishing
AV HOMES presents Casa Montaña in North Scottsdale
Authentic Scottsdale Lifestyle
Is There an Appraiser Shortage?
The AV Homes Story
“Why is it taking so long to complete the appraisal?” Loan Officers have increasingly heard this question from borrowers, builders and Realtors this year. The cause for delayed appraisal reports is a complicated web of factors. I wish it was a simple case of increased demand and stable supply, but government regulation has thrown a monkey wrench into the age-old concept of supply and demand. The result is slower appraisal turn times and unhappy customers.
AV Homes is a nationally respected builder with a long heritage of innovative designs and unsurpassed craftsmanship. This devotion has translated into both award-winning homes and prized 55-plus communities. Formed in 1970, AV Homes has built and closed over 7,500 homes nationwide and is publicly traded on the NASDAQ under the symbol AVHI.
Growth on the Horizon
Today, AV Homes is engaged in homebuilding, land development and other real estate operations in Florida, Arizona, and North Carolina. Over its history, AV Homes has consistently demonstrated the ability to navigate through prosperous and challenging economic environments, while still keeping the home buyer as the single top priority. As a result, AV Homes has been the recipient of numerous awards for planning and homebuilding accomplishments, including the National Association of Homes Builders’ esteemed “Best Community” award.
JIM BELFIORE President Belfiore Consulting
Why AV Homes At AV Homes we appreciate the fact that what we design and build reaches far beyond walls, doors and windows. Home is truly a sense of family and place; a haven of comfort and joy. This understanding shapes our entire thinking and philosophy, and has culminated in our central promise: build what you value most. That’s a responsibility which AV Homes values and takes deep pride and pleasure in fulfilling; one which our team aspires to daily and which embraces a true passion in continually reassuring you that we will always do the right thing.
Carefree, incorporates low maintenance desert landscaping and flexible home designs. Whether you are downsizing, simplifying your life, or buying your first home, Casa Montaña brings together the best of North Scottsdale living with picturesque mountain views, open space, and a close-knit community. We are proud to offer exceptional lifestyle amenities in a world class Scottsdale setting,” explains Chris Haines, Division President, Arizona Division.
To that end, AV Homes distinguishes itself by creating award-winning new home designs emphasizing the principles of healthy living and community involvement, and brings the professionalism of its veteran team to ensure an unforgettable and seamless experience in reaching our goal: a positively delighted homeowner. When planning each inspired setting, AV Homes thoughtfully considers the location, features, accessibility, amenities, activities, and ultimately your well-being in always providing an innovative, exceptional and enriched living experience.
Community Amenities
CHRIS HAINES Division President Arizona Division
"We're proud to offer exceptional lifestyle amenities in a world class Scottsdale setting."
Casa Montaña Welcome to your new Scottsdale authentic lifestyle...INTRODUCING CASA MONTAÑA. “Set in the shadows of Carefree’s Black Mountain at Casa Montaña, you’ll discover a rare find of this boutique, gated community of only 42 home sites designed around the Sonoran Desert. This intimate community, located in close proximity to Cave Creek and
• 3 unique home designs from 2,413 to 2,648 sq ft • 2-3 bedrooms • From mid $400s • Natural desert common areas • Cul de sac design • Just 1.5 miles from El Pedregal at The Boulders Exceptional Area Schools • Cave Creek USD 93 • Black Mountain Elementary School • Desert Willow Elementary School • Lone Mountain Elementary School • Cactus Shadows High School
FOR INFORMATION: Casa Montaña is located at 6039 E. Gila Circle, at 60th Street, south of Carefree Highway, Scottsdale, AZ 85266. CONTACT: (602) 497-3570
T
he best way to describe the Metro Phoenix Area housing market now is flat. Demand is flat, supply is flat, and – as builders readily attest – appreciation is almost non-existent.
New home sales demand has been similar for 3 consecutive months now, and year-over-year sales were up just 2% in the month-long period from mid-September to mid-October. With the holiday season just around the corner, data being collected now suggests builders are trending towards a typical seasonal slowdown that will result in a drop of sales through mid-January. On the bright side, year-to-date demand has still grown; home shoppers have executed 9% more purchase contracts through the first 9-1/2 months of the year than during the same period last year. Builders’ biggest challenge today lies in the lack of appreciation. Metro Phoenix Area net new build home prices have risen just 2.0% this year, through August. Instead of increasing more significantly this spring and early summer as expected, new home prices flatted over the course of the first 8 months of the year. Belfiore projects prices will increase just 2.5% in total this year. Limited price elasticity has been a major hindrance to appreciation. In the most active market areas, builders that have attempted to increase price have found resistance – even when increases were only a few thousand dollars. Conversely, there exists one major difference in new home supply between last month and this month. Most builders have not been land buyers over the last 12 to 24 months, but with community close-out features reaching highs never before recorded, more builders appear to have flipped the land buying “switch” to on. More transactions are occurring, despite the cost pressures builders have faced over the last 2 years, as builders enter the early stages of procuring lot supply for future growth. Strong growth is on the horizon. Greater activity in land purchasing, coupled with rising costs builders have absorbed over the last 24 months, will necessitate rising home prices. Many builder purchases now appear to be based upon the faith that prices will rise, and Belfiore believes builders will be successful in pushing up prices in 2017 and 2018, to the tune of 6% to 8% next year and 5% to 7% in 2018 – even at the cost of sales rates. Furthermore, expanding buyer pools are bringing new opportunities for market growth; sales demand, as reported last month, encompasses more buyer groups and geographic areas than it has during any period since the housing bubble burst. For additional insight, call Jim at Belfiore Real Estate Consulting, (480) 706-1002, or visit BelfioreConsulting.com.
CHARITY MORELAND National Builder Sales Manager Homeowners Financial Group
I have heard from many people that the supply of residential appraisers has decreased, but in fact the number of appraisers is nearly the same today as it was in 2006. While the total number of appraisers hasn’t changed much in the past ten years, there are other factors impacting the perceived availability of appraisers. Appraisal fees have stagnated since the introduction of TILA-RESPA Integrated Disclosures (TRID) in 2015. Under TRID rules, the appraisal fee quoted to a customer is a “zero tolerance item,” which means that once a price quote is given the lender can’t amend that cost unless a valid change of circumstance occurs. While sounding good in concept, the reality is that all properties and appraisals are not created equal, so the unintended consequences are that only the least qualified appraisers will accept appraisal assignments on complex properties. Unfortunately, some of the best appraisers are only accepting less complex appraisal assignments to maximize their income. Also, the information requirements on appraisals have magnified over recent years as lenders are requiring more information detailed on each appraisal. As lenders are required to scrutinize appraisals more closely, the time spent completing each appraisal has grown in recent years. Once again, this causes appraisers to avoid accepting assignments for unique or complex properties. Lower fees and increased lender requirements are a bad formula for enhancing efficiency in turn times for appraisals. From a strictly economic point of view, it is simply not worth the appraisers’ time to accept many appraisal opportunities. So, until the industry can figure out a better way to compensate appraisers appropriately for the assignments they accept, we are going to continue to see slower turn times on many of our appraisals.
Authentic Scottsdale Lifestyle
Is There an Appraiser Shortage?
The AV Homes Story
“Why is it taking so long to complete the appraisal?” Loan Officers have increasingly heard this question from borrowers, builders and Realtors this year. The cause for delayed appraisal reports is a complicated web of factors. I wish it was a simple case of increased demand and stable supply, but government regulation has thrown a monkey wrench into the age-old concept of supply and demand. The result is slower appraisal turn times and unhappy customers.
AV Homes is a nationally respected builder with a long heritage of innovative designs and unsurpassed craftsmanship. This devotion has translated into both award-winning homes and prized 55-plus communities. Formed in 1970, AV Homes has built and closed over 7,500 homes nationwide and is publicly traded on the NASDAQ under the symbol AVHI.
Growth on the Horizon
Today, AV Homes is engaged in homebuilding, land development and other real estate operations in Florida, Arizona, and North Carolina. Over its history, AV Homes has consistently demonstrated the ability to navigate through prosperous and challenging economic environments, while still keeping the home buyer as the single top priority. As a result, AV Homes has been the recipient of numerous awards for planning and homebuilding accomplishments, including the National Association of Homes Builders’ esteemed “Best Community” award.
JIM BELFIORE President Belfiore Consulting
Why AV Homes At AV Homes we appreciate the fact that what we design and build reaches far beyond walls, doors and windows. Home is truly a sense of family and place; a haven of comfort and joy. This understanding shapes our entire thinking and philosophy, and has culminated in our central promise: build what you value most. That’s a responsibility which AV Homes values and takes deep pride and pleasure in fulfilling; one which our team aspires to daily and which embraces a true passion in continually reassuring you that we will always do the right thing.
Carefree, incorporates low maintenance desert landscaping and flexible home designs. Whether you are downsizing, simplifying your life, or buying your first home, Casa Montaña brings together the best of North Scottsdale living with picturesque mountain views, open space, and a close-knit community. We are proud to offer exceptional lifestyle amenities in a world class Scottsdale setting,” explains Chris Haines, Division President, Arizona Division.
To that end, AV Homes distinguishes itself by creating award-winning new home designs emphasizing the principles of healthy living and community involvement, and brings the professionalism of its veteran team to ensure an unforgettable and seamless experience in reaching our goal: a positively delighted homeowner. When planning each inspired setting, AV Homes thoughtfully considers the location, features, accessibility, amenities, activities, and ultimately your well-being in always providing an innovative, exceptional and enriched living experience.
Community Amenities
CHRIS HAINES Division President Arizona Division
"We're proud to offer exceptional lifestyle amenities in a world class Scottsdale setting."
Casa Montaña Welcome to your new Scottsdale authentic lifestyle...INTRODUCING CASA MONTAÑA. “Set in the shadows of Carefree’s Black Mountain at Casa Montaña, you’ll discover a rare find of this boutique, gated community of only 42 home sites designed around the Sonoran Desert. This intimate community, located in close proximity to Cave Creek and
• 3 unique home designs from 2,413 to 2,648 sq ft • 2-3 bedrooms • From mid $400s • Natural desert common areas • Cul de sac design • Just 1.5 miles from El Pedregal at The Boulders Exceptional Area Schools • Cave Creek USD 93 • Black Mountain Elementary School • Desert Willow Elementary School • Lone Mountain Elementary School • Cactus Shadows High School
FOR INFORMATION: Casa Montaña is located at 6039 E. Gila Circle, at 60th Street, south of Carefree Highway, Scottsdale, AZ 85266. CONTACT: (602) 497-3570
T
he best way to describe the Metro Phoenix Area housing market now is flat. Demand is flat, supply is flat, and – as builders readily attest – appreciation is almost non-existent.
New home sales demand has been similar for 3 consecutive months now, and year-over-year sales were up just 2% in the month-long period from mid-September to mid-October. With the holiday season just around the corner, data being collected now suggests builders are trending towards a typical seasonal slowdown that will result in a drop of sales through mid-January. On the bright side, year-to-date demand has still grown; home shoppers have executed 9% more purchase contracts through the first 9-1/2 months of the year than during the same period last year. Builders’ biggest challenge today lies in the lack of appreciation. Metro Phoenix Area net new build home prices have risen just 2.0% this year, through August. Instead of increasing more significantly this spring and early summer as expected, new home prices flatted over the course of the first 8 months of the year. Belfiore projects prices will increase just 2.5% in total this year. Limited price elasticity has been a major hindrance to appreciation. In the most active market areas, builders that have attempted to increase price have found resistance – even when increases were only a few thousand dollars. Conversely, there exists one major difference in new home supply between last month and this month. Most builders have not been land buyers over the last 12 to 24 months, but with community close-out features reaching highs never before recorded, more builders appear to have flipped the land buying “switch” to on. More transactions are occurring, despite the cost pressures builders have faced over the last 2 years, as builders enter the early stages of procuring lot supply for future growth. Strong growth is on the horizon. Greater activity in land purchasing, coupled with rising costs builders have absorbed over the last 24 months, will necessitate rising home prices. Many builder purchases now appear to be based upon the faith that prices will rise, and Belfiore believes builders will be successful in pushing up prices in 2017 and 2018, to the tune of 6% to 8% next year and 5% to 7% in 2018 – even at the cost of sales rates. Furthermore, expanding buyer pools are bringing new opportunities for market growth; sales demand, as reported last month, encompasses more buyer groups and geographic areas than it has during any period since the housing bubble burst. For additional insight, call Jim at Belfiore Real Estate Consulting, (480) 706-1002, or visit BelfioreConsulting.com.
CHARITY MORELAND National Builder Sales Manager Homeowners Financial Group
I have heard from many people that the supply of residential appraisers has decreased, but in fact the number of appraisers is nearly the same today as it was in 2006. While the total number of appraisers hasn’t changed much in the past ten years, there are other factors impacting the perceived availability of appraisers. Appraisal fees have stagnated since the introduction of TILA-RESPA Integrated Disclosures (TRID) in 2015. Under TRID rules, the appraisal fee quoted to a customer is a “zero tolerance item,” which means that once a price quote is given the lender can’t amend that cost unless a valid change of circumstance occurs. While sounding good in concept, the reality is that all properties and appraisals are not created equal, so the unintended consequences are that only the least qualified appraisers will accept appraisal assignments on complex properties. Unfortunately, some of the best appraisers are only accepting less complex appraisal assignments to maximize their income. Also, the information requirements on appraisals have magnified over recent years as lenders are requiring more information detailed on each appraisal. As lenders are required to scrutinize appraisals more closely, the time spent completing each appraisal has grown in recent years. Once again, this causes appraisers to avoid accepting assignments for unique or complex properties. Lower fees and increased lender requirements are a bad formula for enhancing efficiency in turn times for appraisals. From a strictly economic point of view, it is simply not worth the appraisers’ time to accept many appraisal opportunities. So, until the industry can figure out a better way to compensate appraisers appropriately for the assignments they accept, we are going to continue to see slower turn times on many of our appraisals.
ArizonaHomebuilder
AZBUILD
DECEMBER | JANUARY 2017
You’re an Arizona Builder, We’re an Arizona Lender.
BILL ROGERS CEO Founder & CEO of Homeowners Financial Group Financial
“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!
Homeowners Financial Group is a co-founder of Care Fund, a nonprofit organization providing housing expense relief to Arizona families during their child’s extended illness or injury. We strongly believe a parent should never have to choose between working to pay for their housing or caring for their child. For more information on what you can do to get involved, visit thecarefund.org
Corporate Office | 16427 N. Scottsdale Rd. Suite #145 | Scottsdale, AZ 85254 | www.homeownersfg.com | 480.305.8550 This is not a commitment to engage in a loan transaction. All loan products and loan amounts may not be available in your area and are subject to credit and property approval pursuant to agency and investor guidelines. Information, rates and programs are subject to change without prior notice. Some products may not be offered directly by Homeowners Financial Group USA, LLC (HFG) but are offered through a lender with whom HFG has a business relationship. Other restrictions and limitations may apply. NMLS#93718 Homeowners Financial Group USA, LLC is licensed in AZ: BK 0906222; CA: CRMLA 4131292; FL: MLD1186; IA: MB 2014-0099; ID: MBL-5879; IL: MB.6761024; MN: MN-MO-93718; MT: MB/ML 93718; NC: L-166403; ND: MB102538; NE: NE93718; NM: ML-03068; NV: 4255; OH: MB.850255; OR: ML-5229; SD: ML 05089; WA: CL-93718; WI: 93718BA/BR; and registered in CO. • 480.460.0996 • www.DesertLifestyle.net Produced by DLP Marketing • (480)460-0996 • DLPmarketing.com Produced by Desert Lifestyle Publishing
AV HOMES presents Casa Montaña in North Scottsdale