Central Arizona's new-home permits drop

This real estate news brought to you by Matthew Pellerin of PhoenixHomes.com & Realty Executives...

The Phoenix Business Journal reports that building permits for new homes issued in July totaled 5,077, down more than 23% from the 6,608 permits issued in July 2004, according to RL Brown's Phoenix Housing Market Letter. New home permits are still 8.3% ahead of last years record pace. In the resale category, 12,720 homes were sold in July, up 19% from 10,685 in July 2004. So far this year, 81,439 resale homes changed hands, up 28% from 63,546 during the same seven-month time period in 2004.

RL Brown does not see a bubble bursting here, and attributes the drop in new home permits to little more than a correction. "We can have another 15-year record busting market if land prices, labor and materials, and housing prices are in proper alignment with the realities of housing prices in other highly desirable markets, and with local wages," Brown said. More...