Many economists believe this year’s surge in homebuilding is beginning to look more and more like a real recovery of the Valley’s new-home market.
New Home Permits Issued in July 2015 are 55% Higher than Prior Year
The Phoenix Housing Market Letter published by RL Brown and Greg Burger reports that:
- New home sales were up 10% in July 2015 versus July of 2014.
- 1,592 permits were issued in July 2015 for new houses compared with 1,024 in July 2014, reflecting an increase of 55%.
- Year-to-date new home construction permits were up 39% compared to the same seven month period in 2014.
The newsletter attributes the recent increase in new-home construction and sales to improvements in the region’s economy, more existing homeowners able to sell and buy a new house, and boomerang buyers who lost houses to foreclosure who are now able to qualify for mortgages again.
Median Price of New Homes in July 2015 is 28% Higher than Median Price for Existing Homes
The median price of new houses sold in metro Phoenix during July reached almost $300,000, which is about $83,000 more than the median price for an existing Valley house.
- Is it Time to Celebrate a Local and National Housing Recovery?
According to an August 18, 2015 CNBS article, U.S. housing starts rose to an eight year high in July of 2015. Housing starts have now been above a one million-unit pace for four straight months.
With that said, the recent plummet of stock prices will definitely affect consumer confidence and could tighten bank’s lending criteria. Let’s hope that new construction will continue to outperform last year’s numbers and contribute to the recovery of the local and national economy.
By Gary Ringel, CGREA