Total new-home closings: 9,687
Population: 4,489,109
The good: The Southeast Valley fuels 40% of total starts, which clocked in at a 26.8% increase in the first quarter of 2015 compared with the first quarter of 2014.
The bad: New streets lead to plenty of empty subdivisions, as lot production outpaces demand.
The bottom line: Phoenix marks a prime spot to pick up lots, but it’s currently a market to enter with some trepidation, as the market is slowing.
A red flag rose over Phoenix as the real estate market showed signs of contraction in March-April 2014. In the fourth quarter of 2015, starts slowed to the tune of 14% year over year, as MLS numbers showed the average days on market among all listings slowly exceeding 90-day listing agreements. For now, a large selection of new lots, an enticing market surrounding Silicon Valley, and increases in employment in the region may be the impetus behind an increase of 25% year over year among building permits in March 2015. No doubt, the Southeast Valley remains the place to be, where starts were up by 26.8% in first quarter of 2015, compared with the first quarter of 2014, proving that by picking the right locations, this market is still plenty viable.
