By Mike Sunnucks | Rose Law Group Reporter
Over the past year, 292 new home communities have sold out in the Phoenix region as high demand and low supplies continue to drive market dynamics.
But limited supplies of homes for sale could take a bite out of the number of sales this year, according to real estate expert Jim Belfiore.
Belfiore, a principal with real estate research firm Zonda, said the number of sold-out communities shows the strong level of demand for housing but also persistent limited supplies of product.
“That’s more than the half the number of active communities we have now,” Belfiore said of the new home subdivisions that sold out in 2020.
There are currently 470 active new home communities in the Phoenix market — which encompasses Maricopa and Pinal counties.
Demand for new homes was up 25% from mid-December to mid-January in the Phoenix region compared to a year ago, Belfiore said.
Strong demand coupled with limited supplies could also continue to drive up prices and cut into new homes sales in 2021.
Belfiore said there could be 6% to 8% fewer new homes sales regionally this year because supply shortages.
“Simply, there is not enough supply. That’s going to temper the number of transactions that are able to be consummated,” he said.