By Angela Gonzales | Phoenix Business Journal
Jim Daniel, president of R.L. Brown Housing Reports, said homebuilders are benefiting from the shortage of resale listings.
Year to date, builders have closed on more than 15,000 new homes, down less than 1% from the 15,388 closings between January and August of 2022, Daniel said.
The median new home price over the last 13 months has remained flat, he said. On Aug. 23 that median new home price was $478,993, only $300 higher than Aug. 22.
“The housing market reacts to interest rates, and right now it appears that we will see the status quo for the immediate future,” Daniel said. “One segment of the housing market that we are watching is the completion of many build-to-rent and apartment complexes, and that effect on monthly rental rates.”
Mattamy Homes has five new communities in development in the Valley, said Phoenix Division President Don Barrineau.
“Fortunately, we had only pursued land deals with a guaranteed water solution,” he said. “While being prudent, we are still building QMIs which represent about 50% of our volume.”
Dea McDonald, president of Brookfield Properties Development in Arizona, said he’s optimistic about the future of the housing market in metro Phoenix, but said affordability headwinds will likely continue to affect home sales through the remainder of 2023 and 2024.
“We believe we are in a good position to meet future housing demands with our two active master-planned communities Eastmark in the East Valley and Alamar in the West Valley,” McDonald said. “In addition, we are introducing our newest East Valley master-planned community named Blossom Rock in 2024.”
Last month, Brookfield named its first homebuilders for the 1,400-acre Blossom Rock master plan. Those selected to build a total of 554 homes in the first phase of the development are Lennar, Houston-based David Weekley Homes, Atlanta-based PulteGroup Inc. (NYSE: PHM), Nevada-based Tri Pointe Homes Inc. (NYSE: TPH) and its own Scottsdale-based Brookfield Residential.
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