Real Estate August 2 2020

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Arizona Republic

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SUNDAY, AUGUST 2, 2020

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REALESTATE

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New-home sales surge after pandemic letdown

Valley market rebounds as buyers, sellers adapt Catherine Reagor Columnist Arizona Republic USA TODAY NETWORK

Forecasts were grim for metro Phoenix’s home building market during the early days of COVID-19. Potential home buyers were expected to stay out of new subdivisions and model homes due to health concerns, and many home builders shut sales offi ces. But record low-interest rates, mask requirements, virtual new-home tours and pent up demand from buyers who can’t fi nd existing Valley homes they can aff ord has spurred a surge in new-home sales across the Phoenix area. New-home sales in the Phoenix area

are poised to climb back to March levels, which was a four-year high for the market still recovering from the crash. “In April, new-home sales plummeted 28% from March,” said Arizona home building expert Jim Belfi ore. “But in August, sales should be back at March’s high level.” New-home prices are expected to rise with the demand. That’s because builders didn’t have many cancellations in April and May and don’t have a backlog of houses already built and ready to sell.

Back to home building high for decade In mid-April, Belfi ore dropped his 2020 forecast for new-home construction in the Valley to 16,500 from 27,400. In 2019, 25,000 new Valley homes were built, compared to 23,500 in 2018. Based on a rapid drop in new-home See REAGOR, Page 3H

MERRY ECCLES/USA TODAY NETWORK; GETTY IMAGES

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