Despite bad economy, homebuilder has Valley's top-selling subdivision

Fulton Homes had the top-selling subdivision, based on permits, in metro Phoenix through May of this year, but overall sales remain low in a weak economy.

The Tempe-based homebuilder's new Monterey Bay at Fulton Ranch community in Chandler had the fastest sales pace from January to May, according to RL Brown Reports.

Since debuting on the market in January and priced at about $380,000, 62 of the community's 89 homes have sold, said Dennis Webb, Fulton Homes vice president for operations, adding that Fulton execs are considering building a similar community in Queen Creek.

Having the top-selling subdivision is another bit of good news for the company, which faced $160 million in debt when it filed for bankruptcy in January 2009. On Tuesday, it reached a settlement with lenders and saw its reorganization plan approved in court.

The Brown report tracked building permits issued by the city, which RL Brown President Greg Burger said is an indicator of sales. He said most builders do not seek permits unless they have an interested buyer.

Total new-home closings for this year are predicted to be about 5,750 for metro Phoenix - about a 10th of the new homes closed in 2005, when the market peaked with nearly 57,500, according to RL Brown.

Fulton might be No. 1, but the housing market as a whole hasn't shown much growth, said Burger, a real-estate analyst.

"The housing market, as it sits right now, is basically a flat performance," Burger said.

Webb said public perception of the company has probably been affected by the bankruptcy.

The other top-selling subdivisions also were in the East Valley. Blandford Homes' Power Ranch Craftsman Collection in Gilbert came in second with 58 new homes closed, and K Hovnanian Homes' Willows, also in Gilbert, closed 49 homes.

Blandford Homes sales associate Gale Richardson attributes the success to Craftsman Collection's $129,000 starting price, low interest rates and "short-sale orphans" - people eager to buy a home but tired of waiting for banks to approve their loans.

"They get sick of the waiting process. The short-sale process can be a nightmare," Richardson said. "That's frustrating for people, which has driven them into the new-home arena."

Webb said the Monterey Bay success can be linked to the one-story homes' amenities, furnishings and energy efficiency.

"When the housing boom took a reset, builders cut prices, but they didn't give homebuyers enough amenities to give them a reason to buy. . . . The Valley as a whole is not doing well," he said. "(But) we're doing pretty well."

He said luxuries like granite counter tops, courtyards and energy efficiency have become the norm. Monterey Bay is one of four projects at Fulton Ranch, which has a church, school and grocery store.

Also nearby is Intel Corp., whose employees have proved a strong demographic for the community.

Webb said half of the community's residents work at the Intel Fab 32 factory, also in Chandler.

by Kevin Cirilli The Arizona Republic Jun. 29, 2011 12:00 AM



Despite bad economy, homebuilder has Valley's top-selling subdivision