Building permit contrast: homes plummet, apartments soar
By: Ahwatukee Foothills News
The Valley’s housing market is not only worsening for sellers but also looking not so hot for builders, a leading local analyst of the local market said last week.
The Cromford Report offered a dismal outlook on the new-home construction scene in the Valley, stating that the number of permits being issued for new homes is plummeting and that the industry here is “slamming on the brakes.”
Reporting that ”things are getting worse for sellers,” the Cromford Report said its index of Valley home sub-markets – based on a variety of sales and price data – shows “the deterioration in the market continues to fall.”
It said that of those submarkets, Queen Creek now offered the least favorable market for sellers.
“Eleven cities are buyer’s markets, three are balance and three are still seller’s markets, though all three are deteriorating rapidly,” the Cromford Report said.
The "deteriorating markets" are Fountain Hills, Paradise Valley and Scottsdale because while advantageous to sellers, now, that environment is c=beconign elss so. Cromford said the three strongest markets are Cave Creek, Phoenix and Chandler.
“Dramatic trends are reported by the Census Bureau for building permits in Central Arizona,” the Cromford Report also said. “For Maricopa and Pinal Counties in September we saw only 1,485 single-family building permits. This is the lowest monthly total since February 2017 and down 36% from September last year.”
That spells bad news for buyers – and for renters – at least in the short term.