Incredible news for the Phoenix area real estate market: our friends at the Cromford Report have recently announced that new home permits reached peaks in July that had not been seen since 2007!
The news is good for both single family homes and multi-family units. The number of single family permits in Maricopa and Pinal Counties for June totaled 1,946. This is the biggest number we’ve seen since this time in 2007! It represents a 17% increase as compared to July 2015.
The new home permits news is even more substantial when you look at the first two quarters of 2016. So far we have 9,724 single family new home permits – that’s up 18% over the first two quarters of 2015. That puts the 12-month rolling calendar average at 1,522.
Below is a look at the top five Maricopa County cities with new home permits:
Phoenix – 1,305
Mesa – 1,097
Gilbert – 940
Peoria – 845
Chandler – 753
The real estate market news is the same in multi-family new home permits, which totaled 2,131 in June alone. That is more than double any other month in 2016 so far and a monthly total not seen since February 2007. This brings the 2016 year-to-date new home permits for multi-family units to 4,863. That’s more than 1,000 more than June 2015.
The top three Maricopa County cities with multi-family new home permits include:
Tempe – 790 units
Phoenix – 637 units
Gilbert – 615 units
Outside of new homes permits, we can also look at new home sales and get a little excited. According to the Phoenix Business Journal, new homes sales were up over 25% in June when compared to June 2015 and on we’re on track for more than a 35% total increase in 2016 over 2015. They are also quick to note that the median new home price has dropped 3% from 2015 to $300,000.
So what do these impressive numbers mean for Phoenix area home buyers? Well, increases in new home permits props up the new home construction market and adds considerable momentum to the Arizona economy. This bodes well for the real estate market in general. All the more reason to contact the Matheson Team, Scottsdale area real estate specialists, to begin your search for your next home, whether that be a primary residence, vacation home, or an investment property. We look forward to hearing from you.
Realtor | Founder
The Matheson Team – RE/MAX Fine Properties
21000 N. Pima Rd., #100, Scottsdale, AZ 85255
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