One of the important metrics for evaluating the health of the housing market is the number of single-family home building permits issued. The higher the number of permits issued, the more growth in the market.
Last month, 162 fewer permits were issued in metro Phoenix than in September of 2017. That could be cause for concern about the health of the market, but according to Angela Gonzales of the Phoenix Business Journal, home builders aren’t concerned.
Metro Phoenix Housing Market Still Growing
If you look at the number of permits issued in metro Phoenix from the start of the year, the number of permits is actually up. According to the Home Builders Association of Central Arizona (HBACA), the number of permits issued in metro Phoenix is up 15 percent from the last year–17,466 single-family permits this year compared to 15,191 the year before.
The president of Marcay Homes in Scottsdale, Andy Warren, told Gonzales that he thinks 15 percent growth is “impressive.” Gonzales concludes that metro Phoenix is recovering nicely from the economic downturn of a few years back. She adds that Phoenix is on track to build 22,000 single-family homes this year.
Room for Expansion
Interestingly, this growth in the market comes when the number of permits in some areas of the Valley has dropped dramatically. For example, the number of permits in Chandler decreased by 31 percent. Gilbert and Mesa were down as well, seven and five percent, respectively. Peoria’s permits were down 23 percent while Scottsdale had 12 percent fewer permits.
Warren attributes the decline in permits in the East Valley to the fact that there simply isn’t as much land left to build on. In other parts of the Valley, however, there is plenty of room for expansion. The number of permits in Apache Junction, for example, more than doubled, going from 39 permits to 91. That’s a remarkable 133 percent growth.
Homes Are Out There
What does all of this mean for prospective home buyers in Phoenix? Well, it means there are homes out there, but many of the new homes out there are way out there.
Regardless of where you find your dream home, AZ Mortgage Brothers wants to help you get it. Contact us today for a customized mortgage solution that will get you into your new home!