Bethesda, February 4, 2009—Despite ongoing reports of trouble in the housing industry and questions about the effectiveness of the Federal Stimulus Package, one local homebuilder is beginning to see positive signs that the measures are working. 

EYA, the Washington, DC area builder that last week was named America’s Best Builder by BUILDER Magazine, is finding the combination of actions by the US Government and historically low interest rates is beginning to have a strong impact in its sales offices. “We’ve had the best two consecutive weeks of sales that we’ve had in over two years,” shared Andy Warren, EYA’s Chief Operating Officer at a recent gathering of business leaders. He continued that “Not only did our January 2009 sales nearly triple our January 2008 sales, but we were equally encouraged that the positive results were spread across multiple jurisdictions and a variety of price points.” 

Warren attributed the spike in sales to historically low interest rates combined with the actions that the Federal Government has been taking over the past 9 months finally having their intended impact. “The combination of lower interest rates, raised limits on Federally-backed loans, and increased use of FHA programs has created a financing environment more favorable than any time in recent history, maybe history period,” he shared. 

Fulton Research, Inc., a local company that specializes in market analysis and strategic planning for homebuilders, has seen similar signs. President Dan Fulton stated, “Home shopper traffic and the number of home sales have increased substantially in recent weeks.  People are beginning to see that low interest rates and the aggressively low prices by home builders are creating great buying opportunities.”

The positive effects of the government actions are not being seen everywhere, however. Fulton added that “the closer-in markets of Fairfax County, Montgomery County and the District are experiencing more price stability than those outer markets which saw tremendous housing growth in the peak years of the housing market. Communities in closer-in locations, which meet the rising demand for walkable neighborhoods, are seeing success in today’s market. Low mortgage interest rates and aggressive prices are encouraging those on the fence to purchase their new home.” 

About:
EYA is a smart growth developer, specializing in walkable, mixed-use and townhome developments in the Washington, DC Metropolitan area.  Since its founding in 1992, the company has built nearly 30 neighborhoods in the region.  It is currently constructing the nation’s largest for-sale LEED for Homes townhome community in Washington, DC.  For more information on the company or its neighborhoods, visit www.EYA.com. 

Fulton Research, Inc. is a real estate advisory firm providing market analysis and strategic planning services to developers, corporations, financial institutions, institutional and private investors, public agencies and nonprofit organizations.   Founded in 1981, FRI consultants have expertise in virtually every type of land use. For more information on the company, please visit www.fultonresearch.com