Phoenix Metro homebuilders revive stalled projects--Scottsdale Arizona Custom Home Builder--JKD Building Group
Monday, September 27, 2010 at 12:16PM JKD Building Group--Scottsdale Arizona
Scottsdale Custom Home Builder Network
(KTAR.com) New home construction has been down in the Valley during the recession, but that is changing as builders are buying land at bargain prices and starting to build.
Lenders, who are eager to get bad construction loans off their books, are selling unfinished communities to builders for half the original price of the land.
Scottsdale land broker Jill Lewis said there are good deals.
"You have a subdivision that basically was stalled -- you have all the streets in, everything, basically a finished pad that you can construct a home on."
Lewis said builders will use the cheap land to build new homes that will sell for half what they did four years ago.
"They will actually construct some homes in some locations, just to keep their doors open, anticipating that further on down the line is when they'll start to make their margins, start to improve their earnings and things of that nature."
About 48 communities have reopened for sale, most of them in the southeast Valley.
"A lot of these pieces of property have actually been picked up for less than the cost of improvements," Lewis said, noting the streets and sewer lines already exist.
"If you're going to get less than the cost of improvements, then the land ostensibly is free," she said.
