Sunday, July 19, 2009

Competing with Foreclosures

One of the problems home builders have is competing with foreclosures. Apparently Fulton Homes has figured it out.

Since March, when it unveiled several lower-priced models designed for economy and energy efficiency, the company's sales have catapulted from about 12 homes a month to more than 80...

Despite continued stress in the Phoenix-area housing market and the national economy, conditions have shifted favorably for the bankrupt builder and its competitors, local experts say.

Chief among them is first-time home buyers' recognition that a vast pool of aggressive speculators now stands between them and their dreams of buying a foreclosed home for pennies on the dollar, Phoenix-based real-estate consultant Jim Belfiore said.

"We've heard this over and over again: Buyers (are) becoming frustrated with the process of purchasing foreclosed homes from lenders," said Belfiore, of Belfiore Real Estate Consulting, which collects and analyzes sales, customer feedback and other market data from home builders.

Not that this helps reduce the excess inventory of housing units...

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