Builders resume construction…
In perhaps the strongest sign yet that the bottom may indeed be here, several homebuilders have resumed construction of projects that were formally abandoned prior to completion.
Builders in relatively solid positions, including Blandford Homes, Meritage Homes, Richmond American Homes, Lennar Homes, and K. Hovnanian homes are capitalizing on the cost savings of building in subdivisions where the basic infrastructure has been installed and the permit process is complete.
Cities benefiting from the new construction include Deer Valley, Litchfield Park, Maricopa, East Mesa, Avondale, and Gilbert.
This is refreshing news considering I read a report that indicated only 3 new homes were constructed in all of Maricopa County during Q1 2009.
Prices at these communities are so competitive that people are literally lining up to put their deposits down, as they were when the boom kicked off in 2004.
After a period of relative quiet, I’ve also started seeing more advertising by homebuilders. Bus stops, radio, TV, newspaper, magazines.
Hopefully an uptick in competitively-priced new construction will offer nice alternatives to the supply of foreclosures that banks are allowing to ‘trickle’ into the market.