By Mike Sunnucks | Rose Law Group Reporter
The regional housing market started off 2020 with a big bang, according to real estate expert Jim Belfiore.
“The market is strengthening. I think it’s euphoric,” said Belfiore who is president of Phoenix-based Belfiore Real Estate Consulting.
Home builders sold 19 percent more homes in the Phoenix metro area from mid-January to mid-February than the previous 30 days and 44 percent more homes than the same time frame a year ago.
“Builders can’t build them fast enough. I’m astounded by the sales rate,” Belfiore said.
Builders sold 1,812 new homes in Maricopa and Pinal Counties between mid-January and mid-February compared 1,529 the previous month and 1,254 a year ago.
The median price for a new home stands at $330,386 compared to a median price of $290,000 for a resale home in the Valley.
Belfiore expects to see 28,400 permits for new homes issued in metro Phoenix in 2020 and 30,000 issued each year from 2021 to 2024. In 2019, there were 24,937 new permits.
“There is solid growth across the board,” said Belfiore noting strength in Queen Creek, the Williams Gateway area, Gilbert and the West Valley.
“We’re going to see those dramatic changes west of the Loop 303 in the very near future,” Belfiore said.
Belfiore said he has not seen impacts on the Coronavirus on buyer demand and confidence but he did note dichotomy when it comes to low mortgage interest rates.
Low rates have helped drive demand, especially for entry level buyers in the West Valley. But Belfiore said when rates do eventually go up the market will feel it.
“I feel like we are borrowing demand from a future time,” he said.