May Home Sales Phoenix Metro Area

by Gary Peruzzini

May 2015 saw a 41% jump in new home permit activity from May 2014 while new home closings showed a 10% jump from last May and resale housing increased by 10.48% from the same month last year. Great news indeed!

The year-to-date numbers in total were also encouraging, with new home closings up 5.8% and new home permits up almost 31% for the year to date 2015 versus year-to-date 2014. It’s only prudent to point out that the large gains in permit activity also very probably reflect a moderately high level of builder optimism as well as actual new orders for those homes.

phoenix home sales may 2015 Metro Phoenix resale activity also shows modest improvement over the same month last year statistical track but does show that the last three months will resale activity running ahead of the activity levels of the last 12 months and are demonstrating some stability in the Phoenix resale housing market.

These positive changes indicate that a recovery of the new-home marketplace so far in 2015 is clearly evident in both new-home permits and closing activity, as well as in resale activity. In May 2015 that percentage change in both new-home closings and resale closings was at the 10% level when RL Brown compared the same month’s activity in both categories of housing.

RL Brown says, “While we clearly see the uptick in May 2015 in new-home permits it is also equally clear that over the last four years the month of May has shown little in the way of significant recovery and remains well below activity levels prior to the 2005 housing bubble. An examination of new home closings for the same period shows similar results and does little to add much in the way of market optimism, at least with regard to historical perspective.”

Shea homes captured the permit ranking lead this month were the whopping 130 new-home permits for the month. Number two for the month in permits was the combination of Pulte homes and Del Webb.

Based upon the May 2015 escrow closings the Bridges@Gilbert master-planned community ranked number one for the month. Note that this ranking does not include those age-restricted segments of mixed master-planned communities where both non-age restricted and age restricted housing is offered (i.e. Verrado-Victory, Eastmark-Encore, and similar mixed communities).

RL Brown adds, “It appears obvious that developers and builders as well as lenders and others active in this marketplace have gained a significant measure of optimism as to both the short and long-term opportunities in the marketplace, and the statistical evidence suggests there are indeed grounds for optimism. As usual about this time of the year we have begun a careful analysis of the market data that we collect and update on every new housing community, active or planned, in the region with an eye toward our midyear Phoenix housing market forecast update.”

In general the overall economic picture of the region and the nation also supports a generally modest but optimistic outlook for the economy and for housing, with relatively few economists expressing stark concerns about the potential impacts of economic events over at least the midterm.

NEW HOME CLOSINGS May 2015

Sales for Month 924

Same Month Last Year 840

Percentage Change 10.00%

Year to Date Closings 4,040

Year to Date Last Year 3,818

Percent Change 5.81%

PERMITS

Permits for Month 1,458

Same Month Last Year 1,033

Percentage Change 41.14%

Year to Date Permits 6,142

Year to Date Last Year 4,696

Percent Change 30.79%

RESALES

Resale Last Month 9,024

Same Month Last Year 8,168

Percentage Change 10.48%

Year to Date Resale 38,157

Year to Date Last Year 35,141

Percent Change 8.58%

Related Posts with Thumbnails

Comments on this entry are closed.

Previous post:

Next post: