The lag in permits mirrored a decline in sales. New home sales dropped from 31,899 in 1999 to 29,746 during 2000, a fall of about 7%.
The narrow gap between development of new homes and the sale of new homes reflects a healthy market, says David Thikoll, VP of Meyers. The narrow gaps show that not a lot of speculative houses are being built. If new home permits outpaced closing by more than 10%, then most housing analysts would consider the market overbuilt with spec homes.
While development and sales decline, prices went up. The median price for a new home in the Valley climbed 7% during 2000, up to $159,900, according to Meyers. It was in the northeast Valley, in the Scottsdale area, home values went up the most, 31% a median price of $313,500.
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