(News Release)
In the latest KnowledgeBase publication released by Belfiore Real Estate Consulting, survey data concludes that interest in new-home purchases remains high, however, supply is too low to fulfill demand. Many subdivisions open for sales today are in the close-out stage, offering buyers little to no choices. In the first five months of 2013, 86 new home subdivisions opened, but up to 52% of active communities are expected to sell-out within the next 12 months; more than 80 of active new home communities have 10 or few remaining homesites within, meaning housing supply is constrained. President Jim Belfiore reports, “The temporary lull in residential constructions’ multi-year climb back to pre-boom/bust levels is the result of supply issues. Developers, homebuilders and subcontractors are experiencing the types of growing pains that should be expected when coming off of 30- to 40-year lows.”
With both job growth and population growth on the rise, housing demand is stronger than any period since 2007, but the lack of active subdivisions, and the inventory within those subdivisions, is limiting home sales.
For more information on Metro Phoenix housing market conditions or KnowledgeBase publications, contact Kim Christofferson at kim@belfioreconsulting.com or (480) 706-1002.
