Housing slump impacts builders
By Philip Franchine
Sahuarita has weathered the nationwide housing slump better than some locations, but the number of building permits issued by the town fell by 67% in 2007 from 2006, so tougher times may be ahead. In fact, while Quail Creek saw closings on the sale of almost 100 homes last year within a special taxing district, or CFD, Robson Communities had projected sales of about 150 in that area.
The shortfall means the developer will be paying an extra $1 million toward financing of road and parks costs that would have been borne by new homeowners, a Robson official said in a rare admission by a developer of the impacts of the housing slowdown.
Rancho Sahuarita recently reported a 17% increase in home sales in 2007 over 2006, up to 573 from 490. However, the number of building permits issued there dropped to 156 in 2007 from 556 in 2006 and 818 in 2005, so future sales would hinge on builders completing hundreds of homes on lots with old permits.
Rancho Sahuarita officials have projected home sales of about 500 a year over the next decade. Throughout the town, permits issued in 2007 dropped to 389, down sharply from 1,233 in 2006 and 1,635 in 2005, according to figures compiled by Town Building Official Andy Kelley.
The area that did strongest in all three years was Rancho Sahuarita. In Quail Creek, permits dropped from 335 in 2005 to 273 in 2006 to 21 in 2007. Madera Highlands first received permits in 2006, with a total of 154, and was issued 127 in 2007.
Other developers or builders with a high number of permits issued include: Monterey at Los Arroyos, with 139 in 2005; Meritage at Los Arroyos with 100 in 2006 and 34 in 2007; KB Home at Santa Thomas Villas, with 200 in 2005, 74 in 2006, and 20 in 2007; Pepper Viner in La Joya Verde with 44 in 2005, 24 in 2006 and 7 in 2007, and La Canada with 21 in 2007.
In the first three months of 2008, Rancho Sahuarita (84) and Madera Highlands (48) have started strongly, followed by Meritage at Los Arroyos (17); Quail Creek (5) and KB Home at Santo Tomas Villas (4).
FULL STORY: http://www.sahuaritasun.com/articles/2008/04/23/news/news01.txt