Government report shows slight pick up in new home sales, but demand remains much weaker than year ago levels. The PHX area median house price of $265,470 continues to run about the US average , and March existing home sales int eh area increased over the January and February totals. Any improvement in the market is welcome, because there are more than 50,000 houses posted for sale on the Arizona Regional Multiple Listing Service, which covers mainly the Valley.
Speculators are suggesting that the market will not begin to pick up again until late 2008. The median price of a new home sold in March was $254,000, jumping 6.3 % from the typical price of a new home sold last year. About 3 out of every 4 builders are offering incentives such as paying closing costs or offering items in the home for free in order to maintain sales in the current weak market.
In the Chandler, AZ area, the weakness in home sales and revenue has hit athe results of the nation's leading home builders. Earlier this month the NO.2 home builder, DR Horton, reported a 37% drop in the number of new homes it sold in the latest quarter, citing continued weakness in prices and saying the typical start to the spring home buying season hasn't begun. Buyers need to work with agents to get the best incentives with builders and have proper representation. |
