Analysts Predict Healthy Housing Market Outlook for 2010

Housing Experts Weigh in on the Road to Economic Recovery in the Coming Year

(Tempe, AZ) – In what are considered measured signs of a gradual improvement, many housing analysts are predicting a positive forecast on the road to economic recovery in 2010. Phoenix metropolitan numbers from the Information Market indicate a decline in foreclosed homes for September, with an 11 percent drop in foreclosures from August. In addition, new home prices are on the rise, with the median value of a new home now listed at $197,948, according to the latest RL Brown Report.

Local housing analysts are attributing the positive numbers to the enactment of government legislation such as the First Time Homebuyers’ Tax Credit, and recent loan modification programs enacted in April. Phoenix Housing Expert RL Brown believes these positive numbers are an indication that we’ve seen the worst of the housing crisis. “The positive numbers are due in part to government programs such as the First Time Homebuyers’ tax credit, which we hope will be extended due to its immense popularity. This and other loan modification programs have helped the market inventory, creating more opportunity for homebuyers.”

Indeed, with Congress considering proposals to expand the $8000 tax credit—and potentially apply the credit to all homebuyers who meet eligibility requirements—there appears to be continued signs for a positive outlook heading into 2010. Dennis Webb, VP of Operations for Fulton Homes, sees these factors as contributing to a steady but progressive current into the next year.

“While foreclosures continue to remain a reality, factors such as the possible tax credit extension and the rise in median home values will contribute to a steady but progressive current upward trend into the next year,” he said. “As homebuilders, we remain confident in the market’s resiliency.”

Extending the tax credit just may be the first step to a healthy progression into the next year. Joe Robson, President of the National Association of Homebuilders, views the necessity of expanding the tax credit as essential in contributing to continued positive growth. In a statement issued urging legislators to move forth with their efforts to extend the deadline, Robson proclaimed, “We estimate that [the proposed tax expansion] would increase home purchases by 383,000 in the next year and help mitigate the foreclosure crisis by whittling down inventory. This stimulus alone would create nearly 350,000 jobs over the coming year, which is exactly what the economy needs right now.”

Fulton Homes was founded in 1975 and grew to be one of the top homebuilders and family owned businesses in Arizona. During the past year, in the face of one of the worst housing markets in US history, Fulton Homes soldiered on in a market devastated by foreclosures and short sales. Fulton Homes, which offers many homes in the $116,500- $140,000 range, was the first homebuilder to highlight the downside of foreclosures in an informational advertising campaign.

According to Phoenix housing market data guru RL Brown, Fulton Homes has captured a seven percent market share based on year-to-date permits issued. In the past 12 months, Arizona’s largest privately owned homebuilder has issued 339 permits despite unemployment rates in Arizona hovering around 9.1% and economic conditions still shaky nationwide. The seven percent market share in metro Phoenix represents the best market share in the history of Fulton Homes, placing the only family-owned company second in the market according to permits issued behind only Pulte Homes/Del Webb who ranked first. Shea Homes was ranked third, Meritage Homes ranked fourth and D.R. Horton rounded out the top five.

Published on behalf of Fulton Homes
Founded in 1975, Fulton Homes is one of Arizona’s largest privately owned homebuilder. Headquartered at 9140 S. Kyrene Rd. in Tempe, Fulton Homes builds affordable, high-quality single-family homes. Builder Magazine recently recognized Fulton Homes as having one of the 10 best-selling communities in America. The publication honored the Paradise at Ironwood Crossing community in the San Tan Valley where new homes are selling at a rate of 21.5 per month despite unemployment rates in Arizona hovering around 9.2% and economic conditions still shaky nationwide. To learn more about Fulton Homes, visit www.fultonhomes.com.

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