News Article From: 07-31-2006
House sales still cooling, from the Arizona Republic, reports that metro Phoenix continued its slowdown in new home sales in June, recording 4,842 new home building permits, down 26 percent from June 2005 levels. The information was from RL Brown's latest Phoenix Housing Market Letter. For the first half of 2006, new home permits are down 19 percent from the same period last year. Resales are down more than 25 percent, Brown reported, and there are a record number of homes for sale in the Valley. Real Estate analysts say 2004 is a better benchmark for tracking the housing market's health, versus 2005 where the market was frenzied by speculation, investors and a supply/demand imbalance. Rising Valley home prices and rising mortgage rates both are working to cool the Valley's housing market. Also, some people who signed contracts to purchase new homes are cancelling deals because they can't sell their existing home.