Homebuilders have high hopes for 2010

While 2009 saw local declines in the number of homes sold and in the average sales price, some builders and developers are bucking that downturn.

In 2009, 733 homes were sold locally, down from 781 in 2008, according to the Green Valley/Sahuarita Association of Realtors. The numbers cover southern Tucson to Tubac.

The average selling price last year was $175,000, a decline from $199,493 in 2008. Homes spent an average of 167 days, about five and a half months, on the market in 2009, compared to 160 days the year before.

Cathy York, president of the association, said 2009 was a pretty stable year for the local real estate market considering the rest of the U.S. economy.

And 2010 is off to a good start, says York, a Realtor with Realty Executives of Southern Arizona. Last month, 50 homes in the Green Valley/Sahuarita area were sold, up from 44 in January 2009.

“This year is shaping up pretty nicely. We’re starting stronger this year than last year,” York says. “People I talk to are selling. It’s turning into a stable market.”

She expects bumps in the road through the summer, then a sustained upswing by fall.

Top community

At the master-planned Rancho Sahuarita development, 358 homes were sold in 2009, almost one a day, making it Arizona’s top community for the second consecutive year.

Real estate consulting firm Robert Charles Lesser ranked Rancho Sahuarita No. 5 on its list of the 10 best-selling master planned communities in the nation, based on its sale of 506 new homes in 2008.

Locally, Rancho Sahuarita reported it was dominant in the Tucson area’s new housing market, with its overall market share more than doubling over the last few years. Rancho Sahuarita’s share of all new home closings increased to about 16 percent last year, up from about 7 percent in 2005, it said.

Since the development opened in 2001, builders at Rancho Sahuarita have sold almost 5,000 homes.

“This real estate downturn has proven to be an opportunity for Rancho Sahuarita to seize market share from those communities that never invested in providing lifestyle experiences for their residents. For our customers, it’s all about value and values,” says Rancho Sahuarita developer Bob Sharpe.

“We are projecting about 25 closings per month for 2010, for a total of 300,” Sharpe said.

“In addition, although the prices for existing homes sold in Rancho Sahuarita were down about 10 percent last year, our sales volume was up almost 30 percent, from 181 sales to 232 sales,” he said.

Building and selling

Also prospering despite the tumultuous economy is Dorn Homes, which has building residences in Arizona for more than 30 years, many of them semi-custom homes.

A family-owned and operated firm, Dorn is building new communities in Green Valley, Tubac, Rio Rico, Tucson and Oro Valley. In addition, it plans to open a gated luxury community in Rancho Sahuarita this year.

As others builders continue to struggle during this time, Dorn has been selling an average of one new home per week just in Green Valley and Tubac alone, the company reports.

Its strategy has been to develop new floor plans, maintain its “green” high-performance construction, and to introduce aggressive pricing to compete with foreclosure homes.

“The economy’s negative effects on housing demand has created the ‘perfect storm’ for people in the market looking for a new home,” says David Grounds, Dorn Homes president and owner.

“Interest rates are at historical lows, inflation has yet to rear its head, construction costs are at the lowest levels I have seen in 20 years, the very best subcontractors and suppliers are hungry for work, and we have been able to hire the ‘best and brightest’ professionals in our industry. I have never seen more opportunity for my company, or better value and service I can offer my customers than right now,” Grounds says.

Builder of the Year

At D.R. Horton’s Traditions at Desert Creek community in Green Valley, 76 of the 188 homes planned have sold, 40 of them last year.

The company, named 2009 Builder of the Year by the Southern Arizona Home Builders Association, attributes that sales success to its “charming, quality homes detailed with character, including arches and niches, and great pricing.”

“The high elevated location offers stunning views of Green Valley and several mountain ranges, and the large terraced lots allow you to enjoy more space and privacy between you and your neighbor,” says Jill Zeller, the company’s marketing coordinator and sales representative.

She adds that D.R. Horton has 25 homes under construction and the company’s outlook for 2010 is positive.

Permits

In Sahuarita, the Building Department issued 517 single-family building permits in 2009, down from 749 in 2008 and 847 in 2007.

There were 1,696 issued in 2004, the highest in town history, followed by 1,633 in 2005. There were just 59 issued in 2000.

kwalenga@gvnews.com | 547-9739