According to the National Association of Home Builders, August home builder sentiment met analyst expectations and rose by two points to a reading of 60; July’s reading was revised downward to 58. Two out of three components used in calculating the Home Builder Index were higher. Builder sentiment concerning current housing conditions rose two points to 65. Builders were also more confident about housing market conditions within the next six months; August’s reading was one point higher at 56. Builders were less confident about buyer traffic in new housing developments. August’s reading slipped one point to 44. We’ve seen a surge in new home sales in Chandler, Gilbert and Mesa AZ. As a Chandler Realtor my sales mix of new homes vs resales has increased to about 40% new builds in Chandler and 60% resales. New builds are a leading indicator of the real estate market and shows builder confidence in our Valley real estate. Most of the homes for sale in Ocotillo and Clemente Ranch real estate are already built out; however, the consumer confidence has a positive impact on upward pressure on resale housing prices. Remember I have sold many homes in Clemente Ranch and know of many sellers who are considering selling but have not put their homes on the market, what this means to you is we have ha chance to get your dream home before the prices get bit up! I love selling homes in Clemente Ranch and especially the Ocotillo homes for sale. These are my favorite areas of the South East Valley.
Construction of New Homes Might Increase Supply to Meet Demand
Shortages of available homes have caused demand for homes to surge in recent months. Either we wave a magic wand and get more people to sell their homes in Chandler, Gilbert, and Tempe, or build more homes to meet the increasing demand and prices. (I have canvassed Clemente Ranch and Ocotillo to find a home for my buyers and it does work!) This thwarts positive conditions including low mortgage rates and recent reports of rebounding job creation. If builder confidence rises, it follows that builders will expand construction, but builders also cited factors including regulatory obstacles, a lack of qualified labor and shortages of land available for development as ongoing concerns. Inventories of Chandler homes for sale is at record lows, There are few homes for sale in Power Ranch, Ocotillo, and all of the popular communities. Many cities such as Tempe have fewer than 500 resale homes for sale that are actively listed.
Regional Confidence Readings Mixed but Arizona is still in the vanguard
Regional readings for builder confidence were mixed; builder confidence in the Northeast increased by two points to 41. In the South, builder confidence also rose two points to 63. Builder sentiment in the West was unchanged at 69 while builder sentiment in the Midwest fell two points to 55.
Although growing builder confidence considered positive in light of home shortages, analysts said that single-family housing starts remain well below historical levels.
In related news, NAHB reported that readings for the 55 plus housing market index increased by one point to 57 as compared to the first quarter reading and was unchanged as compared to the second quarter of 2015. As with the general HMI, any reading over 50 indicates that more builders than fewer are confident in market conditions for 55 plus housing markets.
Experienced Chandler Realtors Really Earn Their Money in These Markets
Are you in need of a Chandler Realtor, or Clemente Ranch Realtor? In markets where inventory is low, we are in multiple offers and hiring an experienced agent is the difference of getting your dream home or not. Read about my background an reviews and see how I can negotiate your next real estate transaction.