New homes sales: ‘It’s a spectacular situation.’

By Mike Sunnucks | Rose Law Group Reporter

New homes sales were up 42% from mid-September to mid-October compared to a year ago.

That is according to new regional real estate data from Belfiore Real Estate Consulting.

“It’s a spectacular situation,” said Jim Belfiore, president of Belfiore Real Estate Consulting in Phoenix.

Belifore said demand for new homes continues to be very strong despite low inventory. He said low mortgage interest rates are driving sales and builders are trying to keep up despite labor shortages and low supplies.

“They are do it with extreme labor issues,” Belfiore said.

New homes sales:

Belfiore said while new home sales are up there are 12% fewer active subdivisions from last year.

“Resale supply is extremely low. New home supply is really low,” Belfiore said.

The dynamic is resulting in some builders limiting how many homes they sell each month and others putting off construction of some lots.

There is no supply.

“Builders are purposely preserving the lot supply,” Belifore said.

He said some builders are only selling four to seven new homes each month. “They are doing it because they can’t build them fast enough,” Belfiore said.

He said new home prices are appreciating quickly as demand continues to drive strong sales.

The Queen Creek / Hunt Highway submarket has seen a 5.2% gain in prices the past two months. Casa Grande is up 6% and Maricopa is up 5%.  Belifore said the Williams Gateway area of Mesa and the Coolidge and Florence areas of Pinal County are also performing well.

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