New Home Market Takes a Breather

The Arizona Republic reports that the number of new home permits fell less than 2% in April, meaning building stayed essentially flat from April 2004 numbers. This is the first decline since December. The information was presented in RL Browns May Phoenix Housing Market Letter. There were 5,294 houses permitted in April 2005, down 105 from April 2004, but permits are up 18.9 percent year to date.

"We're in a period where we should be very watchful, but I don't think we can declare an unhealthy condition off of the same month last year," Brown said. "Sales activity has been so strong, builders have intentionally tried to slow the sales pace by smaller releases so sales pace can match the capacity to build the homes in the field," said Mark Upton, executive VP of Engle Homes. The median new home price in April was $209,552, up from $183,462 a year ago. Builders say Phoenix still looks affordable compared to other cities in the West. More...