Belfiore Real Estate Consulting
Metro Phoenix area homebuilders are not feeling so jolly heading into the holidays; they appear stressed, raising incentives, raising co-brokerage fees, and in some cases, lowering base home prices. Belfiore Real Estate Consulting’s latest data, though, suggests the sales environment isn’t really all that bad. The number of monthly sales per subdivision fell to 2.0 per month over the last 30 days. This is lower than the 2.2 recorded last November, but overall more new home sales occurred over the last 30 days than the same 30 day period one year ago. How?
Last November the number of active subdivisions seems to have bottomed out near 300. This year, 23% more subdivisions exist. More total demand is clearly present, just not on a subdivision-by-subdivision basis.
Belfiore Real Estate Consulting President, Jim Belfiore, suggests the recent slowdown has a lot to do with the prices new communities are opening at and seasonality, “select homebuilders have opened new communities at prices that are too aggressive. And, they’ve done it at the worst possible time: heading into Phoenix’s slow season.”
This week, Belfiore Real Estate Consulting will release its latest comprehensive market review report, KnowledgeBase Market Insights; in it, subscribers will find all of the latest Metro Phoenix Area statistics and trends.
