The Sullivan Group Market Observer
Join Us At Our Upcoming Speaking Engagements Sullivan Seminars brought to you by Jeffrey DeMure + Associates Countrywide Home Loans Hilton Pleasanton @ The Club May 15, 2007 Hyatt Sacramento May 16, 2007 Four Seasons Las Vegas May 22, 2007 The Westin South Coast Plaza May 23, 2007 Hilton La Jolla Torrey Pines May 24, 2007 See what past attendees are saying about the Sullivan Seminars: "Voice of reason through historical market outlook." - Gwen Carrington, Pardee Homes "Very insightful. Provides information that is bottom line-oriented, actionable." - Para Anderson, KB Home Click here to learn more about the Sullivan Seminars Gothic 2007 Summit Tim Sullivan Valencia Hyatt April 20, 2007 Spring Builder Economic Forecast Breakfast Tim Sullivan and Jack Haynes Countrywide Chandler Campus Chandler, Arizona May 17, 2007 7:15-10:00am Attendance by invitation only Homebuilding's Premier Conference & Tradeshow Leader to Leader Forum Tim Sullivan, Moderator May 29 and May 30, 2007 Gold Nugget Awards Tim Sullivan, Master of Ceremonies May 31, 2007 Building for Boomers & Beyond: 50+ Housing Symposium Housing for Boomers in a Changing World Denver Tim Sullivan	It’s Not Easy Being Green Sullivan Group has been monitoring the movement toward green building in the residential industry for a few years. While we support the movement wholeheartedly, the homebuilding industry is not moving as rapidly as other industries to fully embrace all tenets of sustainability. We believe the key to moving the "greening of housing" forward is in the hands of the consumer, most of whom still do not recognize many of the benefits of a variety of elements, not the least of which is solar energy. Why Solar Energy Still Has A Long Road Ahead Do consumers perceive the value of solar power features and are homebuilders making strides to move toward a solar energy platform? Not really. But with the help of municipalities and a solar energy mandate, the homebuilding community will have to start to embrace this growing trend. Sullivan Group recently conducted a survey for the Sacramento Municipal Utility District (SMUD) to get a feel for homebuilders' attitudes toward solar energy features in the new home market. What we found was homebuilders are hesitant to adopt energy efficient measures because buyers aren't clamoring for the next solar energy home. Having surveyed top Sacramento area new homebuilders, here are some of their key concerns: Demand: While solar power features may seem desirable, most builders do not believe solar energy is a priority for homebuyers. So demand, according to builders, simply doesn't run deep. Cost: Not only are the internal costs of designing, implementing and supplying solar systems a top concern, but homebuilders believe the increased costs will soften demand even further. After all, price sways many buyers' decisions in today's market and builders don't see buyers paying more for a non-essential feature like energy efficiency. Time Horizon: Although solar systems are said to pay for themselves only after five to seven years, many buyers do not plan on staying in their home that long. So the benefit of the cost savings becomes void. Availability: The limited amount of manufacturers and installers of solar power systems is disconcerting for homebuilders. Aesthetics: As one thing that solar energy has going for it, builders are no longer concerned with solar cells being an eye sore – thanks to streamlined and revamped solar systems. Without homebuyers recognizing the need for energy efficient homes, however, homebuilders would rather wait it out. But here's the catch: A bill passed in California last year will mandate that all new home communities with 25 units or more offer solar power features as an option by 2011. To make this more feasible for homebuilders, we recommended that SMUD start raising awareness – something that all municipalities throughout California should join forces on. What are some things cities can do? Reach out to the public about solar power and begin shaping perceptions that the technology is mainstream, and not futuristic. Spread awareness to homebuyers about the cost-effectiveness, rather than only touting the "green" benefits. Educate the public about the five- to seven-year time horizon (which is shorter than many buyers believe) and continue to shorten this timeline through ongoing technological advances. Inform builders about the "million solar roofs" initiative (part of the bill passed last year) and how it can be met. Assure builders that parts and installation expertise is available. Spread the same message to builders as to buyers – that aside from its environmental benefits, solar energy features in new homes make economic sense. Partner with builders in marketing solar features to the new home market. With the "million solar roofs" initiative looming in the near future, it's obvious that builders will have to make the leap to a solar energy platform sometime soon. But the clear initiative for now? To get homebuyers on board.	March 15, 2007 Volume 8 Without homebuyers recognizing the need for energy efficient homes, however, homebuilders would rather wait it out. - Tim Sullivan The Experts' Predictions Click here to see what Tim Sullivan had to say about Phoenix Metropolitan area's market outlook for 2007, as well as what other experts are predicting. Lofty market for Scottsdale luxury condos To get a glimpse of Scottsdale's luxury condo market and what people like Sullivan Group's Shaun McCutcheon are seeing on the ground, click here. Click here to send The Market Observer to a friend
Still want to learn more about Sullivan Group Real Estate Advisors? Visit our web site

.