This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Toll Scorched in Arizona

"There is such a massive oversupply," East says. The market is bifurcated between the central city areas of Phoenix -- where there is still some demand -- and the outer areas, which are "extremely slow," he says.

In October, new-home sales in the Phoenix area totaled 3,159 units, down 29% from a year earlier, according to the latest data from R.L. Brown Housing Reports. Permits for new homes totaled 1,325, down 43% from last year, the data said.

Surprise, where the Toll project sits, is considered an "edge city" that is in the "direct path of future growth," says R.L. Brown, the author of the market reports. Nonetheless, as the entire Phoenix housing market corrects from boom times, outer areas like Surprise may face even more difficulties because they are so far out and have traffic congestion.

Gasoline, at $3-per-gallon in Arizona, is also hurting housing prices in outlying areas, industry watchers say.

"If they build it today with the land base they had, it could be real challenging," Brown says about the Toll project. "But like any development opportunity of that size, it will span a decade.

"I don't think they are in any long-term negative position relative to that piece," Brown adds.

If Simon does end up pulling the retail piece and no other partner comes in, this "will put even more pressure on the housing component," says Jay Butler, director of realty studies at Arizona State University.

4 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
MTH $43.00 -2.96%
SPG $189.61 -0.23%
TOL $37.70 -1.49%
AAPL $129.36 0.21%
FB $79.60 -0.19%


DOW 18,203.37 -85.26 -0.47%
S&P 500 2,107.78 -9.61 -0.45%
NASDAQ 4,979.9010 -28.1950 -0.56%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs