September 2022 SFH New Construction Update: Arizona Real Estate
Housing market has cooled. Builders are giving +40k in concessions like Taylor Morrison & K. Hovnanian Homes now and a VP of Lennar told me they have allocated +200 MILL to buy down rates for homebuyers. If you’re looking to buy new construction wait until Q2 of 2023 at the soonest. You want to buy after inventory is aged and builders need to to free up capital and completely sell out communities. Rule of thumb: be the first in or the last one out for the best deals
New home sales down in July 2022 to the lowest level since January 2016, sales fell 12.6% from an annual rate of 585k in June 2022 to 511k in July 2022. Year over year sales are down 29.6%, although that sounds bad, the housing market has been way too hot for quite some time, the slow down will help slow home price growth and hopefully bring the market back to normal. Freddie Mac says the average 30 yr. fixed mortgage is 5.55%. 1% increase in mortgage rate equates to a 13% increase in home prices.
Hope this helps!
-Jared