Now more than ever, the Phoenix market needs experienced real estate consultants that are dedicated to providing insight into today’s tough housing market. That’s why one of the nation’s most trusted names in real estate consulting, Meyers Builder Advisors has expanded to open the Phoenix market office.

As the housing market continues to remain a challenge, it’s essential to take a fresh approach to solve today’s sales and inventory concerns. At Meyers Builder Advisors being a leading consulting and advisory practice isn’t a side business. To us, it’s the only business that can provide real-world solutions to the problems facing builders today.

“While the Phoenix market continues to struggle, there are still pockets of opportunity,” stated John Fioramonti, Senior Managing Director of the newly opened Phoenix office. “In the over 25 years I have worked in this industry, it’s more important than ever for builders to balance the basics while developing innovative products that homebuyers demand.”

John Fioramonti will be using his extensive real estate and development experience to provide insight for a wide range of construction and real estate professionals involving residential, commercial, and mixed-use properties and master-planned communities. At Meyers Builder Advisors, we look forward to bringing you a fresh perspective and contributing to the success of builders, developers, and lenders in the Phoenix housing market.imately 9,000 square feet to more than one acre.

There doesn’t seem to be a day that goes by without some newspaper headline touting the sub-prime mess and pending foreclosures. During the height of the recent housing market boom, just about anyone could get a mortgage, and many did with no money down. These no-down-payment loans flooded the market in 2005 and 2006, which allowed the lower-qualified end of the homebuying pool the ability to afford a home. According to Lehman Brothers, sub-prime loans represented approximately 20% of the mortgage market at the end of 2006. With the recent shutdown of many sub-prime lenders, the stricter credit guidelines that have resulted at traditional lending institutions, and declining home prices (which means minimal if any equity build-up in homes purchased in the past year or two), homeowners looking to refinance their current adjustable-rate loans will find it nearly impossible.

Rising levels of foreclosures will continue to put upward pressure on inventory and keep a lid on prices. The hardest hit areas for foreclosures will be in the more affordable markets, where a large percentage of recent homebuyers put no money down on their home and may have overextended themselves financially. According to RealtyTrac, one out of every 92 houses in Arizona is in some stage of foreclosure. A local company that tracks real estate data estimates Maricopa County foreclosures for the first half of 2007 were up a whopping 1,319% to 2,952 households. While an increase in foreclosures in Maricopa County was expected with the slowing housing market, the drastic increase was somewhat surprising. Delinquencies and foreclosures are expected to continue to increase through the next several years, as adjustable mortgage rates continue to reset.

Strategies to deal with tightening credit:

• Develop strong relationship with mortgage provider, whether in-house or 3rd-party
  Provide lender representative on-site during peak sales times
  
• Design “out-of-the-box” financing opportunities using incentive dollars
  
• Market monthly payments (don’t just advertise $X towards closing costs but monthly payment costs lowered by incentives)
  
• Eliminate tie-in of incentives to an in-house lender (gives buyer ability to use alternative financing if in-house lender has stricter lending standards)
  
• List “Starting From” prices on signage to help draw in more qualified buyers (especially helpful in markets where there is a lot of competition)