ArizonaHomebuilder
AZBUILD
OCTOBER | NOVEMBER 2016
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!
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
Real Estate Rally Not Over Yet
STEPS CLOSER E
xperience your new dream life at the most desired offering at the crossroad of Paradise Valley and Scottsdale. The Enclave at Borgata features private and exclusive residences with a sophisticated yet casual resort lifestyle. The 86 exclusive luxury condominiums feature open contemporary floor plans and gracious outdoor living spaces.
CHARITY MORELAND
Nestled south of Scottsdale Road and Lincoln Drive, site of the former Borgata Shopping Center, The Enclave is a luxury condominium community steps away from exceptional restaurants, two grocery stores and boutique shops. Many of the Enclave’s first buyers are Scottsdale and Paradise Valley area residents downsizing from larger homes, seeking convenience and walkability to surrounding amenities. The Enclave provides a leisurely walking experience to AJ’s (620 steps), Trader Joe’s (205 steps), Walgreens (80 steps), Starbucks (422 steps), and dining hotspots such as Flemings (675 steps), Blanco (60 steps), Sumo Maya (845 steps) and Paul Martin’s (65 steps)!
“Walkability is the number one reason our clients select The Enclave,” said Mike Jesberger, President of Antera Development, developer of The Enclave at Borgata. MIKE JESBERGER
The Enclave features three buildings, four stories each, with just 86 units on 4.7 acres. Steel form construction was chosen for its higher quality and sound attenuation. Enjoy lush landscaping, resort pool, resident club, demonstration kitchen, fitness studio, gardens, walking path and pet park. President Antera Development
Presidential Elections & Interest Rates
A
fter Metro Phoenix Area homebuilders enjoyed a relative JIM BELFIORE blockbuster of a summer, President housing demand fell from mid-July to Belfiore Consulting mid-August. New home storefront traffic levels dropped as buyers fled to cooler air, new home and resale transactions declined in the short- and long-terms, and home prices continued to moderate. The period was particularly troubling for builders grappling with how to replace imminently-selling-out communities. KITCHEN Fit for a Master Chef...or try your hand at it. Your well equipped kitchen will be known as the gathering place, one where friends and family come together to drink a glass of wine or just share a good story. MASTER BED/BATH Luxury. The master bedroom and bath at The Enclave at Borgata are designed for complete relaxation. A spacious bedroom with luxury en-suite, with spa-quality shower and bath, along with large walk-in closets redefines resort living.
Antera Development
OUTDOOR SPACES
Funded by JEN Partners, Mike Jesberger leads Antera Development, the developer of The Enclave at The Borgata. He is also principle of Phoenix-based TerraWest Communities. With twenty five years of homebuilding experience in land acquisition, land development and construction, Jesberger was an executive with the Del Webb Corporation and Element Homes.
Open. No more boxy or closed spaces. At The Enclave at Borgata, special attention has been paid to skillfully combine both indoor and outdoor living. With majestic Camelback Mountain as your backdrop - sit, sip and smile.
LIVING AREAS Formality. No more! Now, you are ready for a new stage of living. Casually entertain guests with a home that is spacious yet open, casual yet comfortable, functional yet impeccably designed.
The Enclave Sales Center is open daily at 6176 N. Scottsdale Road, between Blanco and Paul Martin’s American Grill. Prices start in low $800,000’s - floor plans ranging from 1,500 square feet to 3,000 and 5,400 square feet for limited penthouse units. Sales are brisk. Model previews of Plan 16, with 3,016 square feet, are by appointment. For information please visit EnclaveAtBorgata.com or call 480-362-5283. Antera manages the development, planning, construction and marketing of The Enclave at Borgata. Visit: AnteraDevelopment.com.
Demand fell in both the new home and resale markets, unusual in a year of fairly consistent, healthy growth. Homebuilders sold 11% fewer homes from mid-July to mid-August than they sold over the same period one month ago and 5% fewer homes than they sold during the same period last year. Likewise, per Cromford® Report, during the 30 day period ending in mid-August, resale transactions fell 9% period-to-period and 5% year-over-year. On the bright side, sales demand has fanned out and homebuilders found sales success in several Phoenix Metro Area submarkets. Specifically, this was seen in market areas where resale supply has become nearly exhausted, and is thus contributing substantially to new home sales. The latest list of top-selling subdivisions in the Metro Area is diverse – comprised of communities in 8 different submarkets in all Regions of the Valley. Builders’ greatest challenge has been that lack of new home price appreciation. Pricing elasticity is largely non-existent in the market today; new home prices have risen just 1.6% this year, through June. Construction costs have continually increased at a greater rate than prices since early 2015, resulting in weaker homebuilder profit margins. With land prices holding firm, builders have found difficulties in purchasing new lots. The lack of appreciation will become an even bigger issue as pressure to fill the pipeline grows. Accordingly, appreciation is likely to grow in 2017 and 2018, as builder sustainability is dependent on it. Even at the cost of lower sales paces, builders will need to push prices upwards to grow margins and satisfy the need to acquire new lots for new storefronts, as existing communities reach close-out. Dwindling traffic levels, slumping new home and resale transaction volumes, and lack of new home price appreciation have caused some homebuilders to question the strength of the market. Yet, one month of declining data does not make a trend. The outlook remains positive; continued healthy employment and population growth suggest the housing demand rally of previous 2016 months is far from over. For additional insight, call Jim at Belfiore Real Estate Consulting, (480) 706-1002, or visit BelfioreConsulting.com.
National Builder Sales Manager Homeowners Financial Group
T
rump? Hillary? Who knows who will win, but one thing we do know, and no matter if your political preferences lay to the right or left, it’s only natural to wonder how the election will affect us. What will it mean for our taxes? How will it affect my healthcare? What will the election do to interest rates? We often hear talk about how mortgage rates drop after an election. One way to determine if mortgage rates are affected by the presidential election is to see if there is any correlation between their direction and elections.
Most researchers have concluded that there is no evidence that supports mortgage rates consistently rising or falling in a presidential election year. Mark Hulbert, columnist at Market Watch says, “Try as I might, I could find no evidence that interest rates tend to be either higher or lower than average in the weeks and months prior to elections.” What Does This Mean for You? There is definitely some uncertainty involved as the election draws closer, however, it is more important to look at your own situation before making any decision. While the election’s results can influence the market in one direction or another, there are two significant characteristics of the economy that have a greater impact on the direction of interest rates: 1. Employment News: Weak employment data tends to push rates lower. Strong employment data tends to put upward pressure on rates. 2. Foreign Economic News: Uncertainty overseas usually leads to lower rates as foreign investors look to the relative safety of the US financial markets. Positive foreign economic news can cause interest rates to rise. The bottom line is that mortgage rates are at historically low levels, so if it makes sense to buy or refinance a house, then people should definitely take advantage of these low rates.
Real Estate Rally Not Over Yet
STEPS CLOSER E
xperience your new dream life at the most desired offering at the crossroad of Paradise Valley and Scottsdale. The Enclave at Borgata features private and exclusive residences with a sophisticated yet casual resort lifestyle. The 86 exclusive luxury condominiums feature open contemporary floor plans and gracious outdoor living spaces.
CHARITY MORELAND
Nestled south of Scottsdale Road and Lincoln Drive, site of the former Borgata Shopping Center, The Enclave is a luxury condominium community steps away from exceptional restaurants, two grocery stores and boutique shops. Many of the Enclave’s first buyers are Scottsdale and Paradise Valley area residents downsizing from larger homes, seeking convenience and walkability to surrounding amenities. The Enclave provides a leisurely walking experience to AJ’s (620 steps), Trader Joe’s (205 steps), Walgreens (80 steps), Starbucks (422 steps), and dining hotspots such as Flemings (675 steps), Blanco (60 steps), Sumo Maya (845 steps) and Paul Martin’s (65 steps)!
“Walkability is the number one reason our clients select The Enclave,” said Mike Jesberger, President of Antera Development, developer of The Enclave at Borgata. MIKE JESBERGER
The Enclave features three buildings, four stories each, with just 86 units on 4.7 acres. Steel form construction was chosen for its higher quality and sound attenuation. Enjoy lush landscaping, resort pool, resident club, demonstration kitchen, fitness studio, gardens, walking path and pet park. President Antera Development
Presidential Elections & Interest Rates
A
fter Metro Phoenix Area homebuilders enjoyed a relative JIM BELFIORE blockbuster of a summer, President housing demand fell from mid-July to Belfiore Consulting mid-August. New home storefront traffic levels dropped as buyers fled to cooler air, new home and resale transactions declined in the short- and long-terms, and home prices continued to moderate. The period was particularly troubling for builders grappling with how to replace imminently-selling-out communities. KITCHEN Fit for a Master Chef...or try your hand at it. Your well equipped kitchen will be known as the gathering place, one where friends and family come together to drink a glass of wine or just share a good story. MASTER BED/BATH Luxury. The master bedroom and bath at The Enclave at Borgata are designed for complete relaxation. A spacious bedroom with luxury en-suite, with spa-quality shower and bath, along with large walk-in closets redefines resort living.
Antera Development
OUTDOOR SPACES
Funded by JEN Partners, Mike Jesberger leads Antera Development, the developer of The Enclave at The Borgata. He is also principle of Phoenix-based TerraWest Communities. With twenty five years of homebuilding experience in land acquisition, land development and construction, Jesberger was an executive with the Del Webb Corporation and Element Homes.
Open. No more boxy or closed spaces. At The Enclave at Borgata, special attention has been paid to skillfully combine both indoor and outdoor living. With majestic Camelback Mountain as your backdrop - sit, sip and smile.
LIVING AREAS Formality. No more! Now, you are ready for a new stage of living. Casually entertain guests with a home that is spacious yet open, casual yet comfortable, functional yet impeccably designed.
The Enclave Sales Center is open daily at 6176 N. Scottsdale Road, between Blanco and Paul Martin’s American Grill. Prices start in low $800,000’s - floor plans ranging from 1,500 square feet to 3,000 and 5,400 square feet for limited penthouse units. Sales are brisk. Model previews of Plan 16, with 3,016 square feet, are by appointment. For information please visit EnclaveAtBorgata.com or call 480-362-5283. Antera manages the development, planning, construction and marketing of The Enclave at Borgata. Visit: AnteraDevelopment.com.
Demand fell in both the new home and resale markets, unusual in a year of fairly consistent, healthy growth. Homebuilders sold 11% fewer homes from mid-July to mid-August than they sold over the same period one month ago and 5% fewer homes than they sold during the same period last year. Likewise, per Cromford® Report, during the 30 day period ending in mid-August, resale transactions fell 9% period-to-period and 5% year-over-year. On the bright side, sales demand has fanned out and homebuilders found sales success in several Phoenix Metro Area submarkets. Specifically, this was seen in market areas where resale supply has become nearly exhausted, and is thus contributing substantially to new home sales. The latest list of top-selling subdivisions in the Metro Area is diverse – comprised of communities in 8 different submarkets in all Regions of the Valley. Builders’ greatest challenge has been that lack of new home price appreciation. Pricing elasticity is largely non-existent in the market today; new home prices have risen just 1.6% this year, through June. Construction costs have continually increased at a greater rate than prices since early 2015, resulting in weaker homebuilder profit margins. With land prices holding firm, builders have found difficulties in purchasing new lots. The lack of appreciation will become an even bigger issue as pressure to fill the pipeline grows. Accordingly, appreciation is likely to grow in 2017 and 2018, as builder sustainability is dependent on it. Even at the cost of lower sales paces, builders will need to push prices upwards to grow margins and satisfy the need to acquire new lots for new storefronts, as existing communities reach close-out. Dwindling traffic levels, slumping new home and resale transaction volumes, and lack of new home price appreciation have caused some homebuilders to question the strength of the market. Yet, one month of declining data does not make a trend. The outlook remains positive; continued healthy employment and population growth suggest the housing demand rally of previous 2016 months is far from over. For additional insight, call Jim at Belfiore Real Estate Consulting, (480) 706-1002, or visit BelfioreConsulting.com.
National Builder Sales Manager Homeowners Financial Group
T
rump? Hillary? Who knows who will win, but one thing we do know, and no matter if your political preferences lay to the right or left, it’s only natural to wonder how the election will affect us. What will it mean for our taxes? How will it affect my healthcare? What will the election do to interest rates? We often hear talk about how mortgage rates drop after an election. One way to determine if mortgage rates are affected by the presidential election is to see if there is any correlation between their direction and elections.
Most researchers have concluded that there is no evidence that supports mortgage rates consistently rising or falling in a presidential election year. Mark Hulbert, columnist at Market Watch says, “Try as I might, I could find no evidence that interest rates tend to be either higher or lower than average in the weeks and months prior to elections.” What Does This Mean for You? There is definitely some uncertainty involved as the election draws closer, however, it is more important to look at your own situation before making any decision. While the election’s results can influence the market in one direction or another, there are two significant characteristics of the economy that have a greater impact on the direction of interest rates: 1. Employment News: Weak employment data tends to push rates lower. Strong employment data tends to put upward pressure on rates. 2. Foreign Economic News: Uncertainty overseas usually leads to lower rates as foreign investors look to the relative safety of the US financial markets. Positive foreign economic news can cause interest rates to rise. The bottom line is that mortgage rates are at historically low levels, so if it makes sense to buy or refinance a house, then people should definitely take advantage of these low rates.
ArizonaHomebuilder
AZBUILD
OCTOBER | NOVEMBER 2016
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!
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