Builders getting confident – finally?

We’ve all waited and waited for the economy to pick up and the new home market to begin to recover. We are still waiting – uncertainty about mortgage rates and the slow pace of recovery have kept new home builders cautious. Today’s Business Journal article about the resurgence of new home growth –  Home builder confidence turns positive for first time in 7 years – shows that builders have confidence in the future, finally. It also tells of the questionable faith in the demand  or traffic from new buyers:

“What’s interesting is that while builders felt “good” about both current and future sales conditions — which posted readings of 56 and 61, respectively, in June — they feel poorly about prospective buyer traffic due to that index’s 40-point reading.”

In the Phoenix Valley we see continued upward price movement (10.3%)across most sectors. Michael Orr of ASU opines, “Given the balance between supply and population growth in Phoenix, home prices are unlikely to fall below today’s level and are more likely to continue to climb for a long time, though at a more gentle pace.”

Click here to view Orr’s full report.

 

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About Mike Garland

In this age of software, data bases and cloud technology, residential real estate provides an anchor to physical reality. At least for now, there is no virtual reality where people can share a meal, a swim in the pool or laugh in the living room with a view of Camelback Mountain the way they can in a luxury home. I enjoy helping people find and sell homes in the Phoenix Valley. With my team we specialize in residential real estate in the Biltmore area, Paradise Valley and the West Valley. I also head up the Toma Partners relocation group.
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