By Catherine Reagor | The Arizona Republic
New-home prices across metro Phoenix soared too high and too fast in 2012 and 2013 for many buyers to handle, leading to a slump in sales that has builders worried.
Higher prices for new houses, along with slower-than-expected increases in household income, population and job growth, will cut the number of home sales an estimated 5 percent from last year’s level, stalling the long-awaited recovery of the region’s homebuilding market.
The slowdown in home sales means fewer construction jobs but better deals for new-home buyers. Home prices have dropped slightly this summer, and builders are trying to lure buyers by offering incentives that include lower mortgage rates and free upgrades on appliances, countertops, lighting and flooring.
One reason: a big gap between new- and resale-home prices in metro Phoenix — a gap that is greater now than at any time in recent history.
If you’d like to discuss real estate matters, contact Rose Law Group founder Jordan Rose, jrose@roselawgroup.com
