In our November survey of housing market conditions, four builders reported over 8.0 net sales per community. Two of these builders target entry level buyers and two target baby-boomers or move-down buyers.  

These are extraordinary results when you consider:

• Our survey indicates a national average of just 1.29 net sales per community in November
• Builders throughout the country are reporting dismal traffic in both numbers and motivation to buy
• Increasing FICO score requirements are challenging entry level buyers
• Plenty of would-be move-up and move-down buyers are underwater and cannot sell their existing homes

Here is a look at sales success in Phoenix, Oklahoma City, San Antonio and Wilmington.

Shea Homes Trilogy Division, Phoenix

The Trilogy team in Phoenix has a finely tuned machine in place at Vistancia to be able to outsell the market.  Management notes that the division’s success is based on a combination of factors, including a focus on quality, a close relationship with the realtor community and six new models that opened in September.

Home Creations, Oklahoma City

Home Creations is the largest volume home builder in the state of Oklahoma. Despite the downturn, Home Creations has continued to increase annual sales, which are up 30% in the past two years, over 2007 and 2008 activity.  Several communities are achieving 8.0 sales per month, and management points to a commitment to customer satisfaction, and the ability to show that energy efficient features and an ENERGY STAR qualification delivers value. The builder has an extensive list of techniques to drive visitors to the models and onsite sales.

LGI Homes, San Antonio Division

Entry level builder LGI Homes is based in the Houston metro, and has also been delivering homes in San Antonio since 2006. CEO Eric Lipar believes that a commitment to staffing five sales people in the sales office, spending money on advertising and marketing, and keeping spec inventory on the ground is what helps his division achieve high sales volume.

Compass Pointe, Wilmington 

Imagine having to drive all of your traffic from another region of the country.  That’s the marketing wizardry of the Compass Pointe community, which sells homes to baby boomers while they are still living in the Northeast.  Success comes with up-front planning, and live marketing events to build relationships and trust. 

These four builders show us that buyers are still out there, and will buy homes under the right circumstances. Active builders that would like to participate in our monthly survey please email me for more information.