July 31, 2006

Homes Go ‘Unfinished’ In Arizona

A pair of reports from the Arizona Republic. “State and local officials are investigating a months-long work stoppage that has left about 200 unfinished houses in Casa Grande and Maricopa withering in Arizona’s summer as home buyers wonder whether they’ll ever be able to move in.”

“As the Valley’s housing market ebbs, smaller builders like Turner-Dunn, which may have arrived late to capitalize on Pinal County’s gangbusters housing market, are more prone to failures, said Jay Butler, at Arizona State University. Unlike big builders, they can’t absorb rising labor and materials costs, struggle with credit and sometimes lack experienced management that can deal with a cooling market, Butler said.”

“‘If you look at the numbers nationally, the market is slowing tremendously,’ Butler said. ‘With small builders, the problems just cascade.’”

“It’s unclear with Turner-Dunn whether there was fiscal malfeasance or the company was knocked down by the market. But one thing is fairly certain: Turner-Dunn is unlikely to step in and help buyers and owners solve their problems, consumer real estate attorney Chris Combs said.”

“‘If a builder doesn’t even have the money to build a house, I’m pretty sure the buyer isn’t going to see their earnest money,’ Combs said. ‘And if they paid for home upgrades, those are probably long gone too.’”

“In the meantime, insulation yellows in the sun, motorists slalom through streets with 4-foot piles of decorative gravel, wood frames warp and twist like rubbery candy, sun-bleached work orders stapled to walls show work last performed in March. Frustration builds with buyers whose contracts have no timelines for completion while nearby, half-finished homes are cannibalized by new residents for doorknobs and other fixtures.”

“At least eight subcontractors have filed about 100 liens for more than $1 million on finished or unfinished homes in Turner-Dunn Construction Inc. developments in the Pinal County cities of Casa Grande and Maricopa.”

“With liens, the homeowners’ credit can be ruined, and they can’t sell their houses, Richard Marsh, former president of the Land Title Association of Arizona said. ‘This happens a lot when the residential real estate market slows down and smaller builders become overextended,’ Marsh said. ‘It penalizes the homeowner, but the idea is to protect the (subcontractors).’”

“David and Sharon Bickford, who moved into their Casa Grande house in April, have been hit with two liens totaling about $4,000. ‘They could actually take our house,’ said David, who hopes his title insurance will cover the liens.”

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Comment by Ben Jones
2006-07-31 09:12:39

‘This happens a lot when the residential real estate market slows down and smaller builders become overextended,’ Marsh said’

IMO, this always happens whenever the RE cycle goes too far. Big builders have been in the same boat too, in the past.

Comment by txchick57
2006-07-31 09:19:55

We saw this a time or two in North Texas, didn’t we?

Comment by Ben Jones
2006-07-31 10:10:38

Yes, in more than one cycle. I have told local realtors that this happens with overbuilding and they look at me like I escaped from Mad Max. I remember one entire mall that was abandoned in north Texas, in the 70’s. Kids rode motorcycles inside the thing for ten years before a developer picked it up and finished it.

Comment by Arwen U.
2006-07-31 10:17:23

A few months ago I was talking with an older sales agent at a model home of a big builder here in Northern VA. She was wistfully reccalling the unfinished California homes in the early 90’s that nobody wanted, and how even they couldn’t afford one of those even if they had wanted one (or perhaps wouldn’t think of buying one for any price). But then she gathered herself and said “but that won’t happen here, of course”.

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Comment by Death_spiral
2006-07-31 11:08:44

Waiting for Jesse Jackson’s Rainbow Coalition to come to the rescue of overstretched homewoners(or at least the balck ones).

Comment by Soliel
2006-07-31 13:18:36

I remember reading about the excess of homes in California. There was one article in particular, about a new subdivision that stood vacant so long, that welfare folks moved in because “they could afford with their checks”. When that happened, the neighborhoods went down. The houses that were rented to the Section 8 folks were unkempt and brought the whole neighborhood down. Those left had to put up bars on their windows. I hope this does not happen again…but I do not see how it won’t.

Comment by OutofSanDiego
2006-07-31 15:15:18

Even in some currently successful developments (Estrella Mountain Ranch in Goodyear, AZ) people have short memories. If you check a little history on that development, it died on the vine for several years in the mid 90’s until a new company came in just before the current bubble and revived it with a new influx of cash (& subsequently made out big time with the recent bubble). Prior to that they were begging you to buy a lot at relatively give away prices.

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Comment by Daud
2006-07-31 20:58:50

Ohh, Estrella, the first place I visited when I came to Phx Dec 2003. I knew the builders’ websites only, a 2,700 two-story for $250,000 by Woodside. Driving with the realtor out of town on I-10 and then south around that scrapyard gave me an idea how the commute would be to downtown. I backed out and rented since then in Scottsdale. I missed the RE boat, bad, good, who knows. Have a lot north of east Shea but this article gave me a pause on thinking building anytime soon..

Comment by deflation guy
2006-07-31 11:14:16

Reminds me of when I was flying into Denver in ‘91. There were huge tracts of unfinished construction everywhere. From the air it looked like suburbia ghost towns. Eery.

Comment by BW
2006-07-31 10:04:05

And likely will be in the near future.

Comment by moqui
2006-07-31 10:09:14

Ah yes, but this time AZ ROC got smart and created the residential recovery fund specifically for owner occupied homeowners or future owners. http://www.rc.state.az.us/Recovery/answers.html#purpose
I have AZ commercial GC and specialty licenses so I don’t pay into fund. But I can almost bet that there will not be enough to cover all the upcoming claims.

Comment by Ben Jones
2006-07-31 10:13:49

The first article states that only $90k can be allotted to any one builder:

‘Buyers can apply to the state’s real estate Recovery Fund, which is financed through license fee surcharges. First, they have to sue and win against the sales agent or broker who sold them the house, not the builder or developer, said Utley, the state real estate spokeswoman. Then, buyers can apply for recovery of up to $30,000. However, the total payout on claims against a single licensee is capped at $90,000.’

Comment by moqui
2006-07-31 10:27:19

I read it different than this reporter. A claimant can perform either a civil or administrative procedure to initiate a claim….depending whether or not the licensee has been suspended (something very likely to occur here)
The claim is against the contractor, not a broker or agent. However, the reporter is correct regarding the 90k cap

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Comment by EProbert
2006-07-31 09:23:08

Sucks for the people who just thought they were gettting onto the housing market. I mean, I’m as full of Schadenfreund as the next guy, but I many many people were acting it what they thought was their best interests.

For the builders to crap out and leave their customers with the financial mess is a real shame.

Comment by CA renter
2006-07-31 13:05:55

Yes. There really should be another way for the subs to get their money (aren’t the GCs bonded or something?)

This is definitely one area where I side with new buyers.

Comment by Hoz
2006-07-31 14:50:07

These buyers were probably looking to flip (or at least 40 % of them). Screw ‘em. If the bldgs had been completed how many would have walked? And for the ones that were going to live there - think how much money they saved.

Comment by samk
2006-07-31 09:25:10

So, the buyer pays this company to build them a house. The homebuilder decides that they can’t afford to finish the house. Then the homebuilder’s creditors put liens on the unfinished homes which then affect the buyer’s credit?

Am I missing something here? What did the buyer do to deserve to have his credit ruined?

Comment by catspit1
2006-07-31 09:37:23

We all got it comin’, kid.

Comment by John Law
2006-07-31 09:37:50

damn, I know that movie.

Comment by John Law
2006-07-31 11:32:43


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Comment by Vmaxer
2006-07-31 14:37:07

One of my favorite westerns after the “Outlaw Jose Wales”. Especially the ending.

Comment by We Rent!
2006-07-31 17:59:07

Best line:

“Better not go cuttin’ up - nor otherwise harm no whores - or I’ll come back and kill every one of you sonsabitches. “

Comment by samk
2006-07-31 09:43:35

Great quote from an excellent movie.

Comment by Craven Moorehead
2006-07-31 09:47:41

All of Mr. and Mrs. Bickford’s liens, plus their mortgage documents are available on the Pinal County Recorder site.


Just put in David Bickford as the name.

Two liens from subcontractors, one for some painting that wasn’t paid for, and another for the air conditioning install.

Check out the mortgage terms, too. Ugh-lee. Looks like an 80/20, adjustable rate, beginning at 7.5% and capped at 14% (!!!) with prepayment penalties.

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Comment by NoVa Sideliner
2006-07-31 10:54:31

Oh my gawd! That’s a TERRIBLE mortgage! The guy was either desperate to get a house despite some bad credit, or he’s totally ignorant and illiterate, too!

His rate of 7.55% at the start is actually, according to the Adjustable Rate Rider, the *lowest* that it will go! He signed that?!? An interest rate floor?? OK, I would consider signing on an interest rate floor if there were other really enticing things in the deal, but that sure isn’t the case here.

So he’s got an adjustable rate way higher than a typical 3-year fixed. Well, he’s good till May 2008 with that “bargain” rate, and then it floats.

Floats to what? To a horrendous 5.85% above LIBOR! Oh boy, that lender saw him coming. LIBOR 6-month rate this week is 5.56%. So even if LIBOR stays the same (it might well go up further), poor Mr. Bickford will see his rate bounce up 1% every six months till he reaches 11.41% !?!?! Reamed!

Please, anyone reading this blog who is considering an ARM, please please please look up the margin rate above the index (LIBOR etc.) that you’ll be paying after the float period expires. If you don’t know how to find that or know whether what you have is good or bad, maybe an ARM Is not the loan for you. I’m serious. At least have your lawyer or accountant look it over if you can’t/won’t. (On that note, check in the final mortgage papers you sign that they left it as they stated earlier; some mortgage companies do “make mistakes”. Ha!)

If all he ends up with for liens are the $4,000 posted so far, then they would be the least of the concerns with that rapacious mortgage ahead of him.

Comment by NoVa Sideliner
2006-07-31 12:24:12

Oops, meant to say 30 (above), like this…

So he’s got an adjustable rate way higher than a typical 30-year fixed. Well, he’s good till May 2008 with that “bargain” rate, and then it floats.

Comment by loonofficer
2006-07-31 12:28:01

Is the loan financed through the builder? If so the numbers don’t surprise me one bit. They probably threw in granite counter tops as part of their “huge incentive’ to get an unbelievably $#!tty loan.

Comment by mrincomestream
2006-07-31 18:52:41

His loan officer really did a number on him. I say this knowing that 30 yr fixed is the preferred lien of choice. But what was done to that guy was totally unneccessay. The loan officer was either inexperienced or insane. You can’t even call it greedy. I see why people are complaining. He would have been better off with an option arm or interest only than to take that loan. A 1 year arm is a flipper loan. That dude is done. What the poster above missed was the whammy of them all. The libor adjustment yea that’s bad. But this guy has a 2 yr prepayment penalty on a 1 yr arm. He get’s bumped twice before he can refi. If he refi’s he has to pay 12 month’s worth or 6 month’s “can’t remember now” of interest. Which equates to a whole lot of money and then compound that with values sinking in that area.

That wasn’t greed on the LO’s part because I know how much he made. That was just pure friggin irresponsible ignorance on both parties.

Comment by Kathy
2006-07-31 10:41:12

Actually, on homes that were already closed, the title companies may have to cover these liens. The title companies will accept lien waivers from the builders stating that all subs were paid and will insure a clean title.

Comment by DAVID
2006-07-31 11:10:35

It is called a pre-lien. It protects suppliers from moron builders by going after the owners of the property.

Comment by scdave
2006-07-31 11:55:11

Thats correct;…And the protection for the owner is to record a final notice of completion and wait the approriate amount of time for any leins to come in…After that, they should be OK…If they are useing a title Company, the title company will do the same before they will insure title….

Comment by John Law
2006-07-31 09:34:20

I was thinking of this the other night. Prechter said that bubbles are often accompanied by cultural movements. the 2000 craze coincided with the stock market bubble. so where is our 2006 craze? I think it’s the celebrity obsession and reality tv. it’s exploded over the last few years. I think it’s most evident in MTV and VH1. these channels don’t play music anymore, they are celebrity shows. they play more shows related to real estate, like “mtv cribs” and a vh1 show about celebrity real estate, than they do music videos(or so it seems).

the average joe can become a reality star overnight, just like the average joe can become a mini-mogul overnight by investing in real estate for a few years. just look at shows like “the apprentice.” trump show’s and trump himself is the perfect symbol for out times. he’s part celebrity and part mogul and he’s branding the next mini-trumps.

Comment by John Law
2006-07-31 10:26:55

sorry. I meant to say the 2000 stock craze was reflected in the bubble gum boy band era.

Comment by poordad
2006-07-31 10:51:10

Try watching that MTV show “My Super Sweet 16″. Try to sit through the entire episode. By the end of it, you will be actively rooting for the U.S. to enter an economic depression.

Comment by Death_spiral
2006-07-31 11:00:24

Boy, do I ever agree with that. Maybe those idiots will turn down their boomboxes playing rap crap too.

Comment by huggybear
2006-07-31 11:05:50

I saw that show just once. The “sweet” 16 year old burst into tears when Daddy (a Mistubishi dealer apparently) will only give her a new SUV for her birthday instead of the sporty Eclipse she’s had her eye on. How sad.

But don’t worry bubble fans, Daddy surprised her at her lavish B-day party with first the SUV (to impress her friends of course) AND the Eclipse convertible. I wonder if he financed those with a HELOC?

Definitely another bubble show that already seems dated.

Comment by manraygun
2006-07-31 12:33:16

Poordad: Yikes, that show is appalling. I wonder how kids watching at home take it — do they aspire to be like these brats or do they see them for the train-wrecks-celebrating-empty-materialism they are? I’d guess there’s probably a range of responses.

John Law, as to your thought about the larger cultural meaning of the bubble, I agree that celebrity obsession may be connected to the devaluation of hard work and the rise of the get rich quick mentality as played out in among other places the RE market. The gushing media spigot of images of brainless consumption (Super Sweet 16, for one), makes a steady job seem like the sucker’s play. Trying to get rich buying condos, eating pig rectums on tv, bein’ a pimp of whatever, that’s the new dream. (Maybe given globalization, outsourcing, slow wage growth, disappearing pensions and benefits, etc. eating pigs rectums on tv is a better bet?)

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Comment by We Rent!
2006-07-31 18:07:27

My father-in-law basically lived off of sweet potatoes for the first 10-12 years of his life. When I say “lived off of,” I mean that they were probably 95% of his intake.

These spoiled rich kids need to be euthanized - the world would be a better place.

BTW, pop was born in 1939 - in Tokyo. Why do you suppose his generation of Japanese are some of the hardest working, and most earnestly saving, group of people in human history? Right up there with our (U.S.) greatest generation, I’d humbly reckon.

Comment by san diego sammy
2006-07-31 12:42:28

I feel the same way when I watch that show

Comment by foreclose_me
2006-07-31 14:32:35

Could be; The popularity of Entourage on HBO is more evidence.

But one change that has been noted in some MSM is the dramatic increase in horror-type movies and programs. Of course, horror may be the coming trend, not the present or recent trend.

Comment by amoney
2006-07-31 20:42:48

I’ve noticed that too and mentioned it to friends. I also note that the amount of violence on American tv is orders of magnitude above that of other countries. I see more murders in 5 minutes of flipping channels here than in a month abroad, if that. I didn’t watch much tv for close to 8 years and when I got a tv a few years back it was pretty shocking.

Comment by seattle price drop
2006-07-31 17:03:01

The whole mess (stock market/RE bubbles) started with that screamining Robin Leach show “Lifestyles of the Rich and Famous”.

Who the heck cared so much about rich people before then? Every time you turned on the TV that silly show was on it seemed.

Comment by JohnVosilla
2006-07-31 09:42:03

‘Am I missing something here? What did the buyer do to deserve to have his credit ruined? ‘

Depends whether the lot is in his name and that he personally signed the mortgage and note. If the builder still owned the lot and he just has a deposit and contract he will not have his credit ruined.

Bottom line with down payment or deposit money on a home being built is your perceived equity is subordinate to all the mortgages, liens, judgments and taxes that acrrue and build up over time including every blanket judgement against the builder or developer.. No different than a stockholder of Worldcon or Enron..

Comment by DinOR
2006-07-31 09:46:56


Thanks for the explanation John. I really didn’t understand that either so thanks for making it clear. Not that I would consider buying something before it’s built anyway but you’ve given me yet another reason to find contentment on the sidelines.

Comment by Chip
2006-07-31 17:12:32

I think it may be too easy to dismiss the idea of either having a home built or buying into one that is not finished and for which you can specify colors, finishes and appliances, among other things. Sure, there is risk involved, but a lot of builders will not go out of business from this bust, they just will have lean years and that can be to your great advantage. With lumber prices about in half and concrete following, and with highway-robbery profit margins evaporating, it could be a good time to check out the cost of building versus buying-complete, IMO. Depends on your timing and your tolerance for risk, to be sure, but in the few non-bubbly places I follow, already it appears to be a noticeably better deal to build rather than buy. Since I know very little about actual construction, if I go that route I’ll hire a retired building inspector (who is neither a friend nor an enemy of the builder) to check the place 3+ times a week and follow every detail — perhaps also to help with spec-ing out the contract.

Comment by WArenter
2006-07-31 10:16:06

Sounds to me like there were two different issues: #1-Incomplete houses and #2-houses that had been completed and purchased but ended up with liens from subcontractors when the contractor folded up shop. The article says it depends on the type of title insurance policy whether it covers these liens.

If you are purchasing a home how do you know if all the subcontractors have signed off?

Comment by Kathy
2006-07-31 10:42:55

As I stated above, this is why owners should get title insurance. The title co. will make sure that all subcontractors have been paid before they will insure clean title. If the builder lies to the title co., it will cover the insured’s losses and then pursue the builder.

Comment by Huck Finn
2006-07-31 09:42:06

” half-finished homes are cannibalized by new residents for doorknobs and other fixtures.”

Sounds like a scene from “Escape from New York” . Roving gangs of FB’s hunting down realtors and builders to beat them with doorknobs and granite countertops. Anarchy.

Comment by CFO
2006-07-31 09:56:15

Great visual!

Comment by CFO
2006-07-31 09:56:31

Great visual!

Comment by jim A
2006-07-31 09:58:05

More like a scene from Lethal Weapon 3. Oh wait that WAS filmed in an unfinished subdivision abandoned by the builders.

Comment by Gravity 'ON'
2006-07-31 10:10:04

Where is this cannibalizable site again?

Kinda wanted some new granite countertops meself :)…to raise my home value 110% ya know.

Comment by DinOR
2006-07-31 09:42:16

“lack experienced management that can deal with a cooling market” (said of the smaller builders).

Oh I’m sorry, you mean there’s a “right way” to plug a nuclear reactor with your finger? I must have missed that part. Look, this is arguably the biggest bubble in the history of commerce. NONE of us have any idea as to how to contend with this monster. We can make educated guesses and have intelligent discussion as we aim to do here but being a “bigger” builder isn’t going to help, if anything it just compounds the mistake!

Comment by feepness
2006-07-31 09:56:45

Yes yes, it’s only the SMALLER builders that will have a problem.

You guys just keep telling your bad selves that!

Comment by John Law
2006-07-31 10:00:08

it’s an international bubble with the US dollar(the world’s reserve currency) in big trouble.

Comment by jim A
2006-07-31 10:01:58

ISTR that the way that the plan that the big builders have to deal with this is to sell enough personal stock (cammouflaged by stock buybacks) that after the companies go toes up, the presidents will have enough cash to start new companies when the market reappears.

Comment by M.B.A.
2006-07-31 09:58:33

This thread is just another scary way that some people are going to be out of luck.

I wonder if I were in a different (earlier) stage of my life if I would have been one of the stupid sheople who let themselves get sucked up in this debacle. I think not, but if I am honest with myself, when I was younger, I did not look at the big picture quite as well….

Comment by Pinch-a-penny
2006-07-31 10:00:51

I think that none of us looked at the big picture. We after all were inmortal, felt no fear, and believed that upper management was honest.

Comment by M.B.A.
2006-07-31 10:07:31

no joke! Now I know that upper mgmt is just looking to back date their stock options and then cut and run after a couple of years!

Comment by seattle price drop
2006-07-31 17:16:26

There is no way I would have been caught up in this bubble, even at age 12.

I bought my first home at 26 and, although I did not look at and was not even aware of the “Big Pcture”, I could add, subtract and multiply and take into consideration the possibilty of future problems.

So I made sure the house I bought was cheaper than renting and EASILY affordable, even if my income took a hit. And made sure it had an attached rental to boot, just in case.

That was the “Small Picture” (own personal finances). People haven’t even looked at the Small Picture the last several years.

That’s why we’re in this mess. Total financial irresponsibilty with a major dose of pipe dreams thrown in for good measure.

Comment by Greenlander
2006-07-31 10:04:06

Woohoo!!! Partially constructed houses in Arizona with mechanics’ leins for everyone!!!

Comment by BW
2006-07-31 10:06:40

You could probably have some insanely cool parties in these abandoned exurban subdivisions. No one around to mess with you for miles. Huge homes to crash in. Granite countertops to prepare your steaks on. Home theatre systems. Awesome.

Comment by DinOR
2006-07-31 10:51:44


Now you’re talkin’! Can you just imagine what the pool will look like by the end of summer? Ick. Does this mean I won’t get my $250 security deposit back? For me, this fantasy started when my old neighbor in OR moved back into town and left his home pretty much abandoned for about two years while their “dream home” was being built. Since we were on 3 acre plots and the other neighbor couldn’t really see or hear us it really felt like having the place to yourself! (Of course when they finally sold it went to a couple with ten kids) but it was a great run. I’d give ANYTHING to have those times back. I think they’re just around the corner!

Comment by Beer and Cigar Guy
2006-07-31 12:57:12

Yup, and there ain’t nuthin’ finer in this whole world than partially constructed houses in Arizona with mechanics’ leins. And everyone knows it too. Hell, we’ve got 1,500 people every day moving into Arizona just for the chance to purchase one of these beauties and they won’t last long. Its obviously a buyers market and people had better not wait, because this is the chance of a lifetime. Better get one before you get priced out- pick up three or four if you can! Everybody knows that we’re running out of partially constructed houses in Arizona with mechanics’ leins… Yup.

Comment by palmetto
2006-07-31 12:59:21

Greenlander, thanks for the laugh!! I needed one today.

Comment by catspit1
2006-07-31 10:05:48

not to mention there was no internet where you could get unbiased info.

Comment by foreclose_me
2006-07-31 14:38:37

The Internet doesn’t provide unbiased info; it just provides more biases to pick from.

Comment by Gravity 'ON'
2006-07-31 10:06:09

Someone is still buying the homebuilder’s stock. You’d think each day would bring new lows for all, but the end of last week was actually significantly green. Can someone explain how this can be? Who is buying this crap?

Comment by txchick57
2006-07-31 10:16:20

They were way oversold. They need to be brought back up so the bottom fishers can dump and everyone can get short again.

You can liken it to the 4-5 telecom equip/fiberoptic “rallies” since the 9/11 incident. All of them had 200-400% or more bounces off the bottom several times, then were chopped back down and then bounced again. I never liked the builders fundamentally, just saw what I thought was a chance to play a DCB which is not over yet.

Comment by Getstucco
Comment by Getstucco
2006-07-31 10:41:39

“They were way oversold.”

So were the tech stocks in 2000; just check out what Cramer said back then!

Comment by txchick57
2006-07-31 11:41:49

I don’t listen to Cramer except sometime to short the Mad Money picks.

Comment by FutureVulture
2006-07-31 13:23:43

txchick, I love your posts, but it takes some really twisted logic to day-trade stocks while berating house flippers. Short-term trading is essentially a zero-sum game in either case. I, for one, would love to invest in stocks these days, but you blasted traders have driven their prices into the p/e stratosphere :)

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Comment by Backstage
2006-07-31 15:34:31

All trading is, in essence, a zero sum game.

Comment by Crash and Burn
2006-07-31 13:46:18

Honestly, that is a very sound strategy. Just about every time that gas bag opens his mouth to pump a pig up I want to short it in the AM and hold it for a week. So far I have made money doing just that. As for Kudlow he just makes me hit the mute button. When I listen to him I just want to rip my hair out and bang my head into any hard surface available. Other than that all is well.

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Comment by grush
2006-07-31 17:05:26

Homebuilder stocks will rise when investors believe interest rates won’t. If the economy is weak the Fed will probably stop raising rates, which is what many investors believe.

Comment by flatffplan
2006-07-31 10:09:02

txchik was buyin em
maybe for a trade

Comment by Pinch-a-penny
2006-07-31 10:11:48

Around here, SE Mass, builders are taking up any available land, and getting proposed subdivisions as soon as possible. My uncle in the surveying business tells me that he has never seen so many subdivision plans in such a short period of time. Funny thing is that they are trying to sell the lots, with no houses (methinks that they do not want the exposure, and only want to recoup money invested into the lots themselves…). Funny how just last year I was having the no more land discussion with an old friend turned RE agent. Told him to to look around, and see all the unbuilt land… There are literally hundreds of thousands of acres of land that is buildable, but is not really so, as builders have hogged it over time, and are not building on it. Hope that they choke on it when the time comes!

Comment by txchick57
2006-07-31 11:43:53

It’s like all those companies who rushed to get their IPOs out the door in late 2000 just as the door was closing.

Remember Corvis and Avici? Corvis had a bigger market cap than GM and it was a “pre-revenue” company!

Comment by Death_spiral
2006-07-31 10:22:31

“Buyers like Laquita Jackson and Cedric Moore, who signed a Turner-Dunn Construction Inc. sales contract more than a year ago, have been stranded in rentals instead of living in their dream home.”

Bullshit!! Live in their dream home my ass! These morons are flippers who got caught with their pants down. They had no intention of occupying this POS. Nice try though. Now eat your dog food and shut up!

Comment by Death_spiral
2006-07-31 10:30:01

This Juanita jackass had no intention on living in this dream home. Just another flipper getting hosed like they deserve. 80% of AZ home purchases lately are flips. Welcome to reality, dumbass!

Comment by flatffplan
2006-07-31 11:04:18

this is alot faster than 1990
= WWWWWWHHHHOOOOOOOshhhhalso the whole oil patch was out bfore 1987 and didn’t factor in

Comment by Getstucco
2006-07-31 11:12:27

No surprises here … remember what is different this time:

- the internet
- blogs :-)

Comment by AnonyRuss
2006-07-31 11:30:44

>>>Fourteen months later, 12-year-old son Ishmael still sleeps on a pullout sofa, boxes have dual use as end tables, and the couple have suffered financially. They pay $200 a month in storage fees, have lost equity they could have been building with either house, don’t know the status of their earnest money and probably can’t afford to pay current market prices for the same house.

While it is understandable that Cedric Moore and his live-in girlfriend are angered by the probable loss of their $5K deposit and their house being half-built, they sold their other house in September 2005, which was at or near the peak. In fact, it looks like their old house at 6440 South 16th Way was purchased by a flipper-type, who unsuccessfully tried to sell the house for an extra $30K-$60K. No one bought, and the listings were cancelled. And an identical model in the subdivision sold earlier this year for $15K less than Cedric’s. Plus, the house is in the Baseline Corridor of South Phoenix, current stomping grounds for 2 serial killers, as well as plenty of other violent crimes.

So, “have lost equity they could have been building with either house” is nonsense as far as the old house goes. And I doubt that they lost out on much appreciation on a Casa Grande new build either. Hopefully, Cedric held on to most of the $160K in profits on the old house. Then, he can find a better rental, and wait for a good deal in a decent area.

Comment by Backstage
2006-07-31 15:39:52

These nitwits have been given a gift and don’t even know it. Get out of the contract and keep renting, even if it means taking a $5k hit. In about 12 months, their dream house (currently owned by someone else) will register negative equity, and the 5k will seem like a small price to pay.

Comment by rocketrob
2006-07-31 11:40:01

All those sun bleached half-completed homes have now seen 5.7 inches of rain this month, usually in the form of severe thunderstorms. Maybe more board warping, walls falling, getstucco flacking, mold forming tear downs?

Comment by palmetto
2006-07-31 12:15:16

I thought I’d hear those stories in Florida first. We more stuff to happen like that here, to put the icing on the cake.

Comment by MackAZ
2006-07-31 12:16:44

I think Marcus Dunn took the earnest money, and used it on his new $2.75m Paradise Valley house which he purchased in late 2005.

And, the registar of contractors suspended the license of Turner-Dunn last week.

Comment by Pinch-a-penny
2006-07-31 12:46:05

And of course everything is veiled in corporate secrecy, so he gets to keep the house, and those that put down earnest money, or bought a hose are really hosed!

Comment by san diego sammy
2006-07-31 12:47:56

does anyone know what happend to the unfinished condo project behind chanler fashion center. I have not seen construction on that in at least 6 months!!!!

Comment by palmetto
2006-07-31 13:02:38

Just like the KB Home project here on Rte 41 South of Tampa. No construction, just people wearing sandwhich boards and holding arrows, desperately waving at the folks driving by. I gave ‘em the one fingered salute. Does that make me a bad person?

Comment by Soliel
2006-07-31 13:25:29

Well it doesn’t make you a good one!!!

You know your “flip” is only going to the hired kids who hold these signs, not to KB homes, right?

Comment by palmetto
2006-07-31 14:11:38

I consider it my moral duty to educate these kids as to the true and proper definition of “flipping”.

(Comments wont nest below this level)
Comment by asuwest2
2006-07-31 14:17:01

palmetto—oo soo sad u r. Last I looked, those kids were pullin $10 an hour, or $9.99 /hr more than the agents.

Comment by palmetto
2006-07-31 14:34:24

Well, then, the next time I drive by I’ll panhandle them instead.

Comment by cashedin05
2006-07-31 13:15:21

Elevation Chandler…..Ahhh makes me feel all warm and fuzzy. Here is the most recent article in the AZ Republic.


Comment by cashedin05
Comment by san diego sammy
2006-07-31 13:26:51

Thanks cashedin05 for the link. I figured with a great view of the back of the mall, freeway traffic and noise that would have been sold out before construction started

Comment by pismobear
2006-07-31 20:40:55

Did you notice the ad for the used BMWs. Agents riding bycycles in Pismo.

Comment by azdan
2006-07-31 15:34:34

As for the Chandler skeleton, my understanding is that the builder lost his financing.

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