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More permits in PHX - is this good?

More permits in PHX - is this good?
by Kaushik Sirkar, Chandler REALTOR®
Chandler AZ Real Estate

In today's AZ Republic there is an article stating that home permits climbed to their highest levels in January since August of 2006. To me, that is a sign of growing builder confidence and potentially a reduced inventory of spec homes. But is this a good thing....right now? There are still so many resale homes on the market (~ 46,000). Why start pumping out new homes again?

Ideally new home construction wouldn't pick up again until the Phoenix metro area inventory dropped quite a bit, maybe to below 30,000. I'm all for homebuilder optimism - but are they jumping the gun?

Thanks for Reading :)

Kaushik Sirkar, Chandler Realtor
http://www.homesphx.com

Posted by Kaushik Sirkar on 02/27/2007 11:47 PM

Comments (5)

phoenix real estate, chandler real estate, new home permits, new home construction

This post has been included in Arizona Information Maricopa County, AZ Information

5 Comments on More permits in PHX - is this good?

FEB

2007

I'm all for homebuilder optimism - but are they jumping the gun?

I'm of the opinion that they are the "smart" money in the market. They usually have years of planning into their decisions.

Brian - In general, I would agree with you. They have been wrong, at times, however. Their not cutting back production early enough contributed to the spike in unsold inventory during '06, no?

Yes...but that's short-term. I think they think with a 5-10 year horizon now that most of them are publicly-traded. I think they believe that the immigration to Arizona (from EVERYWHERE) is a good trend. Let's hope it's a good sign.

Kaushik, the way I look at any thing that may get the media to start reporting some positibe news is good.

Brian - Valid point. No arguement with the big builders in their long term prognostications. Agreed on the immigration standpoint....wasn't AZ recently the fastest growing state popoulation-weise?

George - Here here on that point!

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