THE INFILL WAVE AND NEW HOME BUILDERS UPDATE FEB 2006

Developers, politicians clamor to jump on infill wave, from the Phoenix Business Journal, reports that infill development seems to be on the minds of everyone these days, from Phoenix Mayor Phil Gordon to major homebuilders. The reasons for the increased demand for infill projects are rising land prices and development on the outer fringe of the Valley that have caused homebuilders to look for alternatives closer into the city core. The article notes several infill projects already in the works, such as Beazer Homes 20 unit housing project at 24th Street and Broadway, Trend Homes development of 750-homes at 24th Street and Roeser Road, and Lauth Property Groups Washington Airport Center, a master-planned business park on the site of a former mobile home park.

http://phoenix.bizjournals.com/phoenix/stories/2006/03/27/focus4.html?t=printable

New home sales plummeted in Feb., from the Arizona Republic, reports that national new-home sales took their worst drop in nearly a decade in February, and early indications are that it wasn't a good month for builders in metro Phoenix. New single-family home sales fell 10.5 percent in February. In the Valley, new-home numbers will be released this week. "Looking at the preliminary numbers, obviously February was a disappointment compared to last year and year-to-date," said RL Brown, publisher of the Phoenix Housing Market Letter, Builders are requesting fewer permits because they are trying to clear inventories or spec homes on which buyers didn't close, Brown said. "The bottom line is it is a market transition now," Brown said. The slowdown has put downward pressure on prices. Economist still believe that housing is likely to see a moderate slowdown this year rather than anything as severe as the bursting of a speculative bubble.

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