AZBUILD
AUGUST | SEPTEMBER
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
Pictured left to right: Howard Press (President, Watt Communities), Steve Pritulsky (President and CEO, Watt Communities of Arizona), Paul Timm (Chief Operating Officer, Watt Communities of Arizona).
DEVELOPER SPOTLIGHT BELFIORE MARKET OVERVIEW FINANCE CORNER
Turning Up The Wattage:
Watt Communities Enter Arizona The recovering Phoenix homebuilding market has flexed its muscle once again, prompting a new joint venture that brings the residential excellence and urban living style of long-time Southern California-based builder Watt Communities to the Valley of the Sun. Directed by local real estate veterans Steven Pritulsky and Paul Timm, the new venture – aptly named Watt Communities of Arizona – has already announced plans for five urban infill residential communities with a combined value of more than $60 million. Two of these properties, Dorsey Lane in central Tempe and Biltmore Living in Phoenix’s Biltmore area, are now under construction and slated for November grand openings. “Our pipeline of deals take advantage of some very unique land positions in Metro Phoenix and will bring new, quality living options and innovative product designs into our urban cores,” said Pritulsky, who serves as Watt Communities of Arizona President and CEO. “They’ll combine big city with the comforts of home.” Mirroring the high standards of its parent company, STEVEN PRITULSKY Watt President & CEO Communities of Arizona meet President & CEO Watt Communities of Arizona the discriminating needs of urban professionals with innovative, high-quality residential living options in Phoenix’s core markets. Its rich history in for-sale townhome and high-density singlefamily home developments distinctly pinpoints the Valley’s urban-rich environments for buyers who want to experience city living. Dorsey Lane Dorsey Lane encompasses 51 for-sale upscale urban living townhomes located on three acres in central Tempe. It is just one mile from Arizona State University and the nearby, booming Mill Avenue/Tempe Town Lake employment corridor. When completed, the project will be complemented by other existing uses within Dorsey Crossing, a mixeduse residential, office and commercial services development that surrounds the property. “Tempe is a mecca for new corporate office developments, where businesses are drawn to the area’s highly educated employees and fantastic dining, shopping and entertainment,” said Pritulsky. “It is where companies want to be and where employees want to live.” Dorsey Lane will offer contemporary, threestory urban townhomes ranging in size from 1,400 to 1,800 square feet, each with its own two-car garage. Community amenities will include a gated entry, pool, ramada, sundeck, outdoor poolside kitchen and landscaped paseos throughout. The project also delivers a unique indoor/outdoor living quality, with multiple balconies per unit, including four total balconies (two in the front and two in the back) on floors two and three. Biltmore Living is Coming! Located less than a mile south of 24th Street and Camelback Road, Biltmore Living will deliver an additional 40 upscale townhomes in one of Phoenix’s hottest urban areas
– a virtual Main-and-Main of urban-suburban Phoenix that is home to the Biltmore Fashion Park and one of the Valley’s most desirable and bustling professional office corridors. Made for city dwellers seeking that distinct balance between business and pleasure, Biltmore Living positions residents within walking distance of the Camelback Corridor and millions of square feet of Class A office space. It is also just minutes from the posh shopping and dining destinations of the Biltmore Fashion Park, an outdoor lifestyle mall widely recognized as the “crown jewel” of Phoenix retail centers. By car, the project is just a mile east of the 51 Freeway and just three miles north of Phoenix Sky Harbor Airport. Like Dorsey Lane, Biltmore Living offers three-story homes ranging from 1,400 to 1,800 square feet, private garages, gated entry and the outdoor amenity package of pool, ramada, sundeck, poolside kitchen and paseos. It also delivers the same unique balconyheavy, indoor/outdoor living layout. “This is yet another urban Watt Communities location within an established employment core, and our projects will match the quality and the vibrancy of these neighborhoods,” said Paul Timm, who serves as Watt Communities of Arizona’s Chief Operating Officer. “They will allow Phoenix residents to move from renting to owning, or to downsize into a smaller home, without giving up an urban lifestyle.” Thrilled with Arizona “Watt has a decades-long track record of successful urban Chief Operating Officer residential infill developments,” said Watt Communities Watt Communities of Arizona President Howard Press. “We are thrilled with our partnership in Arizona, with the tremendous sites that Phoenix has to offer and with the pipeline of projects that we will be delivering here in the year ahead.”
PAUL TIMM
In addition to Dorsey Lane and Biltmore Living, Watt is actively advancing three other for-sale, metro Phoenix infill residential projects. These include a gated community currently zoned for up to 18 single-family homes at 16th Street and Ocotillo Road in North Central Phoenix; 31 two-story, single family detached homes near 32nd Street and Cactus Road in North Phoenix; and a 35-unit upscale urban townhome community at 8th Street and Roosevelt in downtown Phoenix. The company also continues to actively evaluate other sites in key Phoenix urban infill markets, with the goal of developing more quality, attached and higher density detached for-sale communities. Pricing for all new Watt projects will be released as the communities near completion. For more information please contact Steven Pritulsky or Paul Timm at (480) 386-0259, or visit wattcommunitiesaz.com.
WATT Communities Mission Watt Communities of Arizona is a dedicated builder and passionate purveyor of urban living. This passion results in well-designed townhomes and single-family urban homes that build community within a metropolitan setting. Whether you are a first-time buyer, an empty nester or somewhere in between, look to Watt Communities of Arizona for the benefits of home ownership without sacrificing the vibrant urban lifestyle you love.
2015 – The Year the Market Heated Up! With summer in full swing and temperatures soaring into the typical triple-digits, Metro Phoenix Area new JIM BELFIORE home sales have slowed. From mid-May Belfiore Consulting to mid-June, total new homes sales in the Metro Phoenix Area fell 4%. Likewise, monthly new home sales per subdivision fell during this period, averaging 2.7 homes per community, down from 2.9 over the 30 days prior. Despite growth slowing down in the short-term, recovery of the new home market over the prior year has continued. Year-over-year, new home sales are up an astounding 37%; total mid-May to mid-June sales represented the second highest sales volume recorded in any 30-day period over the last 35 months. Due to the remarkable increase in sales volume, the sales per subdivision rate has also increased year-over-year, even with a concurrent substantial increase in the number of active new home communities. The resale home market has also performed well in recent months, and contributed to the growth experienced of the new home market. According to Cromford Report® data, as of mid-June, resale demand had increased 12%, while resale supply had declined 15% year-overyear, bringing months of supply to a constrained 2.8 months and causing resale home prices to appreciate. The median resale home price rose 9% year-over-year, affording new home prices room to appreciate while still remaining competitive with resale offerings. Homebuilders maintained a disciplined approach to building this spring selling season, further reinforcing the relatively low-supply environment conducive to price stability. With speculative home supply moderated to a healthy 3.7 homes per community, inventory incentives have had less negative influence on price appreciation and new home prices are again rising. Average net new build prices increased 0.2% in April, bringing year-to-date appreciation to 0.6%. Since April, further price appreciation has likely occurred; however, significant price appreciation is forecasted to cease during the now hotter months of the year. Belfiore analysts believe nearly all of the new home price appreciation to occur in 2015 has already taken place. Sustaining continued pricing power in early 2016 should now be of primary concern to Metro Phoenix Area homebuilders. As buyer demand slows down, builders will need to appropriately curtail construction to limit speculative inventory. And, with new home price appreciation projected to move no higher than 5% in any year over the next three years, homebuilders must give especially cautious consideration to the feasibility of maintaining competitive pricing when evaluating any prospective land and lot purchases during the coming months. For additional insight, call Jim at Belfiore Real Estate Consulting, (480) 706-1002, or visit www.belfioreconsulting.com.
Jumbo Loan Improvements, Good for Luxury Home Sales TIM JORDEN Senior Vice President of Sales Homeowners Financial Group
From 2008 through 2014, jumbo loan borrowers felt major frustration with the lack of product offerings and the stringent guidelines of the jumbo lenders. Without a secondary market for jumbo loans and with the introduction of Qualified Mortgage guidelines, the only players in this arena seemed to be the big banks. Big banks were still willing to lend the big bucks, but without exceptions to their concretely defined set of guidelines.
However, 2015 has started with a bang and we have seen major improvements in jumbo loan product offerings (in Arizona, jumbo loans start at $417,001). With new lenders recently entering the jumbo arena we now have plenty of products to accommodate borrowers with jumbo loan needs. Some of these products are creative in how we can qualify the borrowers with alternative income documentation such as bank statements and asset depletion. While the creativity for borrowers has improved, the biggest changes are being seen in the loan amounts and loan-to-values (LTVs) allowed. Below are some examples of just how aggressive some lenders have become in the coveted jumbo loan market. These LTVs are for purchase and rate/term refinance transactions. Primary Residences
Second Homes
Investment Properties
95% LTV to $1,500,000 90% LTV to $2,500,000
85% LTV to $2,500,00
80% to $2,500,000
Many prospective buyers of luxury homes are unaware of these recent improvements in the jumbo loan arena. They still have a bad taste in their mouth from the past few years when only those buyers who could afford a large down payment and whose income could be documented via conservative guidelines could qualify. By increasing the availability funds, the number of prospective luxury buyers has been increased. These recent changes are a positive development for new homes with sales price of $500,000 or higher! 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.
Turning Up The Wattage:
Watt Communities Enter Arizona The recovering Phoenix homebuilding market has flexed its muscle once again, prompting a new joint venture that brings the residential excellence and urban living style of long-time Southern California-based builder Watt Communities to the Valley of the Sun. Directed by local real estate veterans Steven Pritulsky and Paul Timm, the new venture – aptly named Watt Communities of Arizona – has already announced plans for five urban infill residential communities with a combined value of more than $60 million. Two of these properties, Dorsey Lane in central Tempe and Biltmore Living in Phoenix’s Biltmore area, are now under construction and slated for November grand openings. “Our pipeline of deals take advantage of some very unique land positions in Metro Phoenix and will bring new, quality living options and innovative product designs into our urban cores,” said Pritulsky, who serves as Watt Communities of Arizona President and CEO. “They’ll combine big city with the comforts of home.” Mirroring the high standards of its parent company, STEVEN PRITULSKY Watt President & CEO Communities of Arizona meet President & CEO Watt Communities of Arizona the discriminating needs of urban professionals with innovative, high-quality residential living options in Phoenix’s core markets. Its rich history in for-sale townhome and high-density singlefamily home developments distinctly pinpoints the Valley’s urban-rich environments for buyers who want to experience city living. Dorsey Lane Dorsey Lane encompasses 51 for-sale upscale urban living townhomes located on three acres in central Tempe. It is just one mile from Arizona State University and the nearby, booming Mill Avenue/Tempe Town Lake employment corridor. When completed, the project will be complemented by other existing uses within Dorsey Crossing, a mixeduse residential, office and commercial services development that surrounds the property. “Tempe is a mecca for new corporate office developments, where businesses are drawn to the area’s highly educated employees and fantastic dining, shopping and entertainment,” said Pritulsky. “It is where companies want to be and where employees want to live.” Dorsey Lane will offer contemporary, threestory urban townhomes ranging in size from 1,400 to 1,800 square feet, each with its own two-car garage. Community amenities will include a gated entry, pool, ramada, sundeck, outdoor poolside kitchen and landscaped paseos throughout. The project also delivers a unique indoor/outdoor living quality, with multiple balconies per unit, including four total balconies (two in the front and two in the back) on floors two and three. Biltmore Living is Coming! Located less than a mile south of 24th Street and Camelback Road, Biltmore Living will deliver an additional 40 upscale townhomes in one of Phoenix’s hottest urban areas
– a virtual Main-and-Main of urban-suburban Phoenix that is home to the Biltmore Fashion Park and one of the Valley’s most desirable and bustling professional office corridors. Made for city dwellers seeking that distinct balance between business and pleasure, Biltmore Living positions residents within walking distance of the Camelback Corridor and millions of square feet of Class A office space. It is also just minutes from the posh shopping and dining destinations of the Biltmore Fashion Park, an outdoor lifestyle mall widely recognized as the “crown jewel” of Phoenix retail centers. By car, the project is just a mile east of the 51 Freeway and just three miles north of Phoenix Sky Harbor Airport. Like Dorsey Lane, Biltmore Living offers three-story homes ranging from 1,400 to 1,800 square feet, private garages, gated entry and the outdoor amenity package of pool, ramada, sundeck, poolside kitchen and paseos. It also delivers the same unique balconyheavy, indoor/outdoor living layout. “This is yet another urban Watt Communities location within an established employment core, and our projects will match the quality and the vibrancy of these neighborhoods,” said Paul Timm, who serves as Watt Communities of Arizona’s Chief Operating Officer. “They will allow Phoenix residents to move from renting to owning, or to downsize into a smaller home, without giving up an urban lifestyle.” Thrilled with Arizona “Watt has a decades-long track record of successful urban Chief Operating Officer residential infill developments,” said Watt Communities Watt Communities of Arizona President Howard Press. “We are thrilled with our partnership in Arizona, with the tremendous sites that Phoenix has to offer and with the pipeline of projects that we will be delivering here in the year ahead.”
PAUL TIMM
In addition to Dorsey Lane and Biltmore Living, Watt is actively advancing three other for-sale, metro Phoenix infill residential projects. These include a gated community currently zoned for up to 18 single-family homes at 16th Street and Ocotillo Road in North Central Phoenix; 31 two-story, single family detached homes near 32nd Street and Cactus Road in North Phoenix; and a 35-unit upscale urban townhome community at 8th Street and Roosevelt in downtown Phoenix. The company also continues to actively evaluate other sites in key Phoenix urban infill markets, with the goal of developing more quality, attached and higher density detached for-sale communities. Pricing for all new Watt projects will be released as the communities near completion. For more information please contact Steven Pritulsky or Paul Timm at (480) 386-0259, or visit wattcommunitiesaz.com.
WATT Communities Mission Watt Communities of Arizona is a dedicated builder and passionate purveyor of urban living. This passion results in well-designed townhomes and single-family urban homes that build community within a metropolitan setting. Whether you are a first-time buyer, an empty nester or somewhere in between, look to Watt Communities of Arizona for the benefits of home ownership without sacrificing the vibrant urban lifestyle you love.
2015 – The Year the Market Heated Up! With summer in full swing and temperatures soaring into the typical triple-digits, Metro Phoenix Area new JIM BELFIORE home sales have slowed. From mid-May Belfiore Consulting to mid-June, total new homes sales in the Metro Phoenix Area fell 4%. Likewise, monthly new home sales per subdivision fell during this period, averaging 2.7 homes per community, down from 2.9 over the 30 days prior. Despite growth slowing down in the short-term, recovery of the new home market over the prior year has continued. Year-over-year, new home sales are up an astounding 37%; total mid-May to mid-June sales represented the second highest sales volume recorded in any 30-day period over the last 35 months. Due to the remarkable increase in sales volume, the sales per subdivision rate has also increased year-over-year, even with a concurrent substantial increase in the number of active new home communities. The resale home market has also performed well in recent months, and contributed to the growth experienced of the new home market. According to Cromford Report® data, as of mid-June, resale demand had increased 12%, while resale supply had declined 15% year-overyear, bringing months of supply to a constrained 2.8 months and causing resale home prices to appreciate. The median resale home price rose 9% year-over-year, affording new home prices room to appreciate while still remaining competitive with resale offerings. Homebuilders maintained a disciplined approach to building this spring selling season, further reinforcing the relatively low-supply environment conducive to price stability. With speculative home supply moderated to a healthy 3.7 homes per community, inventory incentives have had less negative influence on price appreciation and new home prices are again rising. Average net new build prices increased 0.2% in April, bringing year-to-date appreciation to 0.6%. Since April, further price appreciation has likely occurred; however, significant price appreciation is forecasted to cease during the now hotter months of the year. Belfiore analysts believe nearly all of the new home price appreciation to occur in 2015 has already taken place. Sustaining continued pricing power in early 2016 should now be of primary concern to Metro Phoenix Area homebuilders. As buyer demand slows down, builders will need to appropriately curtail construction to limit speculative inventory. And, with new home price appreciation projected to move no higher than 5% in any year over the next three years, homebuilders must give especially cautious consideration to the feasibility of maintaining competitive pricing when evaluating any prospective land and lot purchases during the coming months. For additional insight, call Jim at Belfiore Real Estate Consulting, (480) 706-1002, or visit www.belfioreconsulting.com.
Jumbo Loan Improvements, Good for Luxury Home Sales TIM JORDEN Senior Vice President of Sales Homeowners Financial Group
From 2008 through 2014, jumbo loan borrowers felt major frustration with the lack of product offerings and the stringent guidelines of the jumbo lenders. Without a secondary market for jumbo loans and with the introduction of Qualified Mortgage guidelines, the only players in this arena seemed to be the big banks. Big banks were still willing to lend the big bucks, but without exceptions to their concretely defined set of guidelines.
However, 2015 has started with a bang and we have seen major improvements in jumbo loan product offerings (in Arizona, jumbo loans start at $417,001). With new lenders recently entering the jumbo arena we now have plenty of products to accommodate borrowers with jumbo loan needs. Some of these products are creative in how we can qualify the borrowers with alternative income documentation such as bank statements and asset depletion. While the creativity for borrowers has improved, the biggest changes are being seen in the loan amounts and loan-to-values (LTVs) allowed. Below are some examples of just how aggressive some lenders have become in the coveted jumbo loan market. These LTVs are for purchase and rate/term refinance transactions. Primary Residences
Second Homes
Investment Properties
95% LTV to $1,500,000 90% LTV to $2,500,000
85% LTV to $2,500,00
80% to $2,500,000
Many prospective buyers of luxury homes are unaware of these recent improvements in the jumbo loan arena. They still have a bad taste in their mouth from the past few years when only those buyers who could afford a large down payment and whose income could be documented via conservative guidelines could qualify. By increasing the availability funds, the number of prospective luxury buyers has been increased. These recent changes are a positive development for new homes with sales price of $500,000 or higher! 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
AUGUST | SEPTEMBER
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
Pictured left to right: Howard Press (President, Watt Communities), Steve Pritulsky (President and CEO, Watt Communities of Arizona), Paul Timm (Chief Operating Officer, Watt Communities of Arizona).
DEVELOPER SPOTLIGHT BELFIORE MARKET OVERVIEW FINANCE CORNER