By Mike Sunnucks | Rose Law Group Reporter
New home sales in metropolitan Tucson rose 42 percent between July and September compared to a year ago, according to Belfiore Real Estate Consulting.
Steven Hensley, an analyst for Belfiore, said new home sales were up 9 percent in the July to September time period compared to the previous two months (May to July).
“There was a lot of activity in the south Tucson area,” Hensley said pointing to strong sales posted by KB Home, D.R. Horton Homes and LGI Homes.
He said those builders have a focus on entry level price points which have been fueling buyers taking advantage of historically low mortgage interest rates.
Hensley said the inventory of homes for sales in Tucson, much like Phoenix, is challenged by high demand, long-term construction labor shortages and the lack of resale homes for sales.
He said resale homes are down 43 percent compared to a year ago. Hensley said high demand and health concerns about the COVID-19 virus are discouraging some homeowners to list their houses and hold open houses.
Hensley said high demand and labor challenges have also resulted in Tucson area builders extending their build times for new homes by one to two months.