Home expert is optimistic about 2011

It has been another tough year for homebuilding in metro Phoenix. Based on November's numbers, only about 7,000 new homes will be built across the region in 2010, according to the "Phoenix Housing Market Letter."

However, RL Brown, "Market Letter" publisher, is more optimistic about 2011.

"Confidence is seeping into the conversations we are having with builders, developers, lenders and real-estate investors," he said. "Reality has taken hold of professionals who remain in the industry, and that reality has spawned a new energy to move forward, out of the trenches where many have hunkered down during the ugly days of the recent past."

Brown acknowledged that November's building numbers were part of that ugly past. Home closings last month were lower than in any November during the past two decades. There were 583 new-home sales in metro Phoenix last month.

For the new-home market to improve, both foreclosures and the number of foreclosure homes being resold by lenders must drop significantly, so that builders aren't competing with the bargain homes.

Loan-mod update

Unfortunately, the federal program encouraging lenders to lower mortgage payments and help homeowners avoid foreclosure continues to slow down.

In November, there were 4,990 metro Phoenix homeowners in trial mortgage modifications, according to the latest monthly report from the U.S. Treasury on the Home Affordable Modification Program.

In October, there were 5,489 trial modification programs under way in the Phoenix area. In September, there were 6,470.

During the past 19 months, through November, payments on 20,945 mortgages in metro Phoenix have been permanently lowered through the federal program.

In October, the total was 20,335.

by Catherine Reagor The Arizona Republic Dec. 28, 2010 06:58 PM




Home expert is optimistic about 2011