Phoenix's housing-market recovery has expanded to the new-home industry.
Construction permits, new-home sales and prices have been rising steadily this year. All are long-awaited favorable signs for one of Arizona's biggest and most-important industries.
In June, 2012, seven builders finalized deals to invest more than $50 million on home lots in the new Mesa community Eastmark, which is being developed by DMB Associates.
More Builders Have Now Finalized Deals As Well
This has many wondering what economic impact this can have, including forecasts for the Phoenix housing market, homebuyers' evolving expectations, homebuilder's economic impact and the construction industry's future.
The amount of new homes built across metro Phoenix is expected to nearly 13,000 this year. Up from 11,500 in 2012.
The construction of one new home creates two to three jobs on average.
Phoenix's housing market has become a forerunner for a national real-estate recovery.
Some of the executives visisted The Republic to offer details on these new home builds after the finalizing of their deals. .
The group included: representivies of Taylor Morrison (Enochs), DMB-Scottsdale (Freericks), Eastmark (McDonald), Meritage (IlesCremieux), Woodside (Kroff) and Maracay Homes (Warren).
One of the questions that was asked was
Describe the state of Phoenix’s housing market now. How does this region’s recovery compare to the rest of the nation?
Here were their responses:
Enochs: “Phoenix is definitely on the leading edge of the recovery. We have seen remarkable sales velocity and price increases.”
Warren: “We are very fortunate in Phoenix because investor demand has cleared out the backlog of foreclosures. That has helped us transition out of a distressed market to more healthy one quicker than other parts of the country.”
IlesCremieux: “Many investors locally and nationally are saying Phoenix is the bellwether for a homebuilding market coming out of the recession.”
Kroff: “We are bullish on Phoenix’s homebuilding market. We knew the pendulum would swing back, and investor demand for foreclosures helped the market recover faster.”
Freericks: “It’s always easy to over judge Phoenix on the upswings and downswings. But now we are seeing positive signs on every front (of real estate).”
McDonald: “There is shift from resales to new-home sales. We don’t manufacture the market. We follow builders closely to see what deals they can do and what makes sense for their business and homebuyers.” Read more of the interview here
It's safe to say it's a buyers market right now in the Phoenix Metro area.
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