It’s been tough to get Spec Home Financing in Arizona in recent years, purely because there’s been no telling how long a move-in ready property would sit before a buyer might take interest. That’s a risk many lenders and builders haven’t been willing to take. After all, once money’s been invested and a home sits vacant, it costs money to maintain it. That eats into the ROI and means that investors and builders can’t move onto other projects, leaving some with no choice but to sell at a discount just to unload the property. The state of affairs has all but stopped construction, so few new homes have been hitting the market at all for the past year.
“Whatever progress has been made in new home sales since the economic recovery began,” explained Zillow Senior Economist Aaron Terrazas in a CNBC report, “recent data makes it clear that builders have been struggling to ramp up new single-family home construction for years.” At the same time, there’s been a surge in demand on the low end of the housing market, which has annihilated supplies as well.
“The housing shortage has been the one glaring villain holding back a more robust housing recovery,” said CNBC real estate reporter Diana Olick. She and the experts cited concur that more new homes are needed, but finding lots for infill in certain cities can be difficult, and this is precisely where more affordable homes are needed.
Danushka Nanayakkara-Skillington, a senior economist at the National Association of Home Builders, says the trick is to be aware of what today’s homebuyers need and cater to it during the build. “Builders need to manage rising construction costs to keep their homes competitively priced for the newcomers to the housing market,” she explained. Lind Goodman, sales manager for BSI Builder Services recently echoed these sentiments in an article for the Washington Post. “Right now, we’re seeing most of the builders in our area building houses as fast as the lots are developed,” she said. “Resale inventory is so low, and builders can’t build houses as fast as they are selling, particularly at the lower-end prices.” This in mind, those leveraging Spec Home Financing in Arizona and those providing it stand to make great profits for the foreseeable future.
If you’ve got experience, finding Spec Home Financing in Arizona should be a breeze, thanks to the surge in demand. However, working on the lower end of the spectrum in keeping with buyers needs and expectations will naturally leave you with smaller profit margins. If you want top ROI, be sure to work with a broker who can find you the best terms possible for your endeavor.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
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Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.