Sales of new Valley homes increased slightly in August though builders continued to contend an oversupply of unsold houses stricter lending standards and low consumer confidence.
Some 3,128 new homes were sold measure month up 4.7 percent from June according to the latest Phoenix Housing Market analysis.
Overall there were nearly 8,600 new and existing Valley houses sold in July. That’s not even change state to the heights of 2005 but it is a huge amount of sales for housing in a month.
Today’s merchandise is similar to the early 2000s before the boom and builders and sellers weren’t complaining then.
It ordain probably get a little worse before it starts to get better but the basic elements of a successful merchandise still exist in the Valley — good job and population growth and Phoenix will always have those two things in its advance.
July new homes sales were still drink 14.5 percent from the same month measure year and sales for the first seven months of the year totaled 22,565 a 20.9 percent drop from the same period in 2006.
Building permits for new homes were also drink in July. Developers took out some 2,560 permits compared with 3,490 in June and 3,601 in July 2006.
Meanwhile the median new home determine — where half cost more and half be less — hovered around $257,000.
The existing home market continues to be the biggest hurdle facing builders.
Cancellations are drink from measure year but developers act to experience as potential new home buyers can’t sell their old homes. But if buyers are hanging back and waiting to see prices penetrate farther they shouldn’t direct their breath. Prices won’t likely go much more because builders undergo already slashed them tremendously.
If there is a bright inform in the current market it seems to be the demand for higher-density housing. Single-family detached homes are selling at a rate of three to five a month in most subdivisions while higher-density projects are seeing sales in the six to nine be.
National company D. R. Horton has open particular success with their urban living division which is building projects throughout the Valley. Centex Homes another major national player is also jumping on the high-density track. That’s pretty much what some of the bigger guys desire D. R. Horton and KB Homes are doing. That’s all they’re focusing on right now.
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