New Home Inventory Ramping Up in the Valley

“The way to make housing more affordable is to build more homes, particularly smaller-sized entry level homes and condominiums.” – Lawrence Yun, National Assn. of REALTORS® Chief Economist

Nod your head if you’ve seen stories and statistics like this…

Inventory is Low: Half are Higher-end Homes

  • In February 2018, Realtor.com® reported 43.8 percent of properties listed were at $250K or below, compared to 75 percent in May 2012.

Construction Labor vs Aspiring Home Buyers

  • National Association of Home Builders projects 900,000 single-family houses will be built in 2018, that’s 300,000 less than needed to keep up with demand.

It may sound daunting, even if you have listings or lookers in the high-end market, but new homes are coming!

Just look at these promising headlines for Arizona…

Cities in the West Continue to Lead Housing Momentum1

Home Builder is Investing $85M to Develop 1,000 Homes in Surprise2

Condominium Construction Revving Up in Phoenix Area2

Developer is Investing $350M to Build Homes in Phoenix Market2

Developer Investing $340M in Four Residential Projects Across Phoenix2

Developer Investing $40M Into 464-Acre Master-Planned Community in East Mesa2

Fulton Homes Investing $300M in New Home Construction in Southeast Valley2

Up to 10-Acre Home Sites Available Within Private Community Near Prescott3

More good news! New home sales in the West rose 28 percent month to month, and Dodge Data & Analytics reports that residential construction starts in Phoenix-Mesa-Scottsdale are up 15 percent over 2017.

Consider taking a course offered by the Real Estate Buyer’s Agent Council devoted entirely to
new-home construction and buyer representation.

It looks like 2018 is shaping up to be quite a positive growth year for Arizona REALTORS®. Happy selling!

Sources:
1 S&P Dow Jones Indices (Apr. 24, 2018)
2 Phoenix Business Journal (Mar-May 2018) Subscription required – Arizona REALTORS® save up to $50!
3 PrescotteNews (Mar. 29, 2018)

Related content:
You’re Even More Vital to New-Home Buyers – REALTOR® Magazine (Apr. 2018)
Unpacking the Housing Shortage Puzzle – The Brookings Institution (Apr. 25, 2018)
Diversifying the Industry’s Workforce to Address the Labor Shortage – NAHBNow.com (Apr. 20, 2018)
Quarterly Construction Cost Report – RLB (First Qtr. 2018)
Housing Underproduction in the U.S. – Up For Growth National Coalition (Apr. 9, 2018)

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