SAHBA News
SAHBA Plans 2009 Parade of Homes
To provide a special marketing program for builders and associate members, SAHBA is producing its first-ever scattered site Parade of Homes this March. Builders and associate members will be able to showcase their craftsmanship, products and services to promote future sales in a scattered lot format and new home setting throughout Pima County.
In addition to member marketing, SAHBA wants attendees to be aware of market availability and choice; benefits of new-built versus resale; comparative product and pricing; latest products, styles and trends; and how to capitalize on the Housing Stimulus Bill.
For this event, SAHBA is looking for new homes sales "hooks" to create a sense of urgency and bring people out to visit the homes during the parade. SAHBA will market the Parade of Homes through an extensive promotional program that will include newspaper, broadcast, magazine, transit shelter signage, internet, public relations and other integrated media. SAHBA also will produce an official program directory.
Contact 520.795.5114 for more information.
Time to Convert Interest-Only Mortgages
In 2005 and 2006, new homes were selling with ease and values were climbing. Those three and five-year, interest-only mortgages looked liked the panacea to home ownership without having to save massive amounts of money for a down payment.
And remember, home buyers always could refinance later with lots of increased equity because it was assumed that home prices always go up. Unfortunately, they didn't and now there are thousands of people with mortgages higher than the value of their homes and payments that are tripling and quadrupling. From this, the Tucson market has a foreclosure sales rate of 16 percent of all resale homes.
The industry is just over the top of the three-year mortgage reset hill. SAHBA Director John Storbeck believes however, that there is another steep, treacherous hill to climb when the five-year mortgages reset in 2010. If possible, this heap needs to be avoided in order for the market to return to some higher volumes, says Storbeck.
Since we have seen what can happen with three-year mortgages, people with five-year mortgages need to convert before reset time, says Storbeck. It would be best for everyone. Homeowners will be able to stay in their homes even though they would be upside down on their mortgages. Also, foreclosures wouldn't be as high, adding to home inventory.
The Federal government's new package provides for mortgages up to 115 percent of the home's value. This could take care of many people finding themselves in an upside-down situation.
If you know homeowners with an interest-only mortgage that will come due in the future, encourage them to refinance to a fixed rate. It may take a little searching to find the company to help them, but it can be done. Storbeck believes that if the high number of resets in 2010 are avoided, or at least minimized, it will help spark the future of the homebuilding industry.
SAHBA Opens Award Nominations
Nominations for SAHBA's "Of the Year" award are open. Following nominations made by members, SAHBA will award its outstanding members. Categories include builder of the year, remodeler of the year and custom builder of the year. Considerations for nominations include community activity, business experience and SAHBA involvement.
