Register Real Estate Advisors

Story Published in the November 2009 edition of Houston Real Estate Executive

Shareholders of Pulte Homes and Centex overwhelmingly approved the merger of the two companies, making the combined company the nation’s largest home builder and vaulting it into the top 10 of Houston-area builders. 

“Combining these two industry leaders creates tremendous opportunities for our customers, employees, and shareholders,” says Jim Rorison, President of Pulte Homes’ Houston operations.  “Our shared commitment to product quality and customer service, combined with the complementary brands, land positions, and building models make this a powerful merger that can accelerate our return to profitability.”

Rorison also adds that there is tremendous value in fully leveraging its brands across all buyer segments to further drive better results in traffic, sales and profitability.  “With the addition of the Centex brand, we have a great opportunity to position Centex (and Fox and Jacobs regionally in TExas) as our high-value brands, targeting the entry-level buyer seeking affordability and value.  Pulte will be positioned as the brand for move-up buyers looking for high quality.”

The combined company now builds in 26 communities in Greater Houston.

For details and information about a community near you, visit www.pultehoustoninventory.com .

HOUSTON (Houston Chronicle, Associated Press) – The number of housing permits filed in the Houston area last month jumped for the second time this year.

Builders filed 2,428 permits for single-family homes, town homes and condominiums in August — up 7.5 percent from the same month last year.

“It’s good news in the sense that there is some strength returning to the market,” said Research Economist Dr. Jim Gaines of the Real Estate Center at Texas A&M University.

Some builders are scrambling to put more homes on the ground by the end of November when the federal government’s $8,000 tax credit for first-time buyers expires.

Nationally, applications for building permits rose 2.7 percent in August to an annual rate of 579,000 units, slightly below the 580,000-unit level that had been forecast. Permits for single-family homes dipped 0.2 percent but rose for multifamily units by 15.8 percent.

WASHINGTON (National Association of Home Builders) – Twenty-six percent of home builders have seen lost sales as appraisals come in significantly below the contract sales price, according to a study conducted by the National Association of Home Builders (NAHB).

“Home builders are increasingly concerned that inappropriate appraisal practices are needlessly driving down home values. This, in turn, is slowing new home sales, causing more workers to lose their jobs and putting a drag on the economic recovery,” said Joe Robson, NAHB chairman.

According to Robson, construction of 100 single-family homes generates 324 local jobs, $21.1 million in local income and $2.2 million in taxes and other revenue for local governments in the first year.

Of the builders surveyed, 60 percent claim that inadequate appraisals are creating major problems in the market. Fifty-four percent of those reporting appraisal problems saw appraisal amounts less than the cost to build.

Robson blames the surge of faulty appraisals partly on foreclosure and distressed sales.