Valley's New Housing Market Starting To Slow
Valley new home permits in February dropped more than 20 percent from the same time last year, perhaps a signal that the Valley's new home market has started to slow.
The 3,729 permits issued in February was the lowest total in the last two years, according to the numbers released by RL Brown in his latest Phoenix Housing Market Letter. RL states that builders are rolling out all sorts of incentives, including price discounts, and free or discounted upgrades.
Brown doesn't see the current housing conditions as a precursor to any kind of disaster. "We're seeing the resale market begin to adjust," said Brown. "Housing prices reached a point to where the consumer said no more. I don't think it will be very long before the resale (price) is reflective of what consumers are willing to pay for a home," Brown added.
The March average base price of all new home floorplans offered was $387,000, while the median closing price was $268,000, a big spread! "It was past time that the rapidly upward price pressure on the new housing market ended," Brown said. "I suspect that we can say they've ended." More...
Here's another article that I posted on the National New Homes Market.