The Monday Morning Report
Complimentary to those with an interest in the Metro Phoenix Housing Market
The Monday Morning Report is a complimentary report on the metro Phoenix new and resale housing market published each Monday by RL Brown Reports, the region’s leading housing market data and analysis firm. Unless otherwise noted, the data and analysis herein is the copyrighted product of RL Brown Reports and may not be republished without permission from the author. However, feel free to share it in its entirety in its original form or request permission to quote from it.
By RL Brown Reports – Home Builders Marketing, Inc.
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The Monday Morning Report - March 6th, 2017....
March Madness Is Coming - Affordable New Housing
Did you know the Final Four will be right here in Glendale, Arizona? This presents another great opportunity for you to promote your business or new home communities, and the great state of Arizona!
If you are a subscriber to our monthly Phoenix Housing Market Letter, you know we reported a median new home price of $318,478 last month. This number is calculated each month from the recorded new home closings for all of Metro Phoenix which includes both Maricopa and Pinal County.
Does this tell the entire story of new home affordability? The more finite but still big picture snap shot can be found by looking at specific
competitive market areas using Magic Professional. An example might be in the graphic on the right where we look specifically at the new home closings in the Northwest submarket.
Here we identify 65 communities with combined closings of 195 in January. The median price calculation was $325,441 in this submarket.
This suggests that if you really want to understand your competition, you need to get "down in the weeds" as a recent colleague at one of the top builders in town put it. They are aggressively pursuing new opportunities to replace lots that are selling at record pace at many of their locations. The challenge is how to remain affordable as land costs continue to escalate in the most sought after areas.
The median price numbers above suggest that new homes are not an affordable option in many areas. We wanted to shed a different light on this perspective. The heat map below identifies concentrations of new homes for sale under $225,000. This would suggest closing prices in these communities would fall well under the median prices identified above.
Many of you might agree that the new affordable home of today actually falls closer to the current Maricopa FHA guideline of $271,050 which would change the heat map below considerably!
We chose $225,000 as the base line number this morning allowing for plenty of room for upgrades while still staying within the FHA guideline. Virtually all but the northeast submarket have product priced in this category.
If you are a builder looking for more sales, you should get on the TNT Tour list.Train-N-Tour is very successful for Las Vegas builders and now it is available to you in Metro Phoenix! They will bring Real Estate agents to your communities to help you build these relationships.
Check out our new Lot Inventory Report. Updated Monthly and included with your Magic Professional subscription! Includes all production communities with 10 or more available lots in Maricopa and Pinal County! Available in PDF and excel pivot table formats.
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If you are a supplier or subcontractor to the home building industry in this Metro Phoenix area you can get the real details of the market’s performance from one or more of our monthly housing market data and analysis reports.
- An overview is contained in our very affordable Phoenix Housing Market Letter.
- Detail at the builder and subdivision level is the meat of our Sales and Permit Report.
For those who have a need for the all of the market’s current and accurate data from best- selling plans, to builder and subdivision rankings plus the ability to perform “treetop data analysis”, our map based Magic Professional Housing Data Application is the region’s tool of preference… the housing pro’s complete research application.
All of these products are affordable, accurate, and timely and cover the entire region every month.
Subscriptions are available here at www.RLBrownreports.com or by calling Greg at 480-614-0211.
We have the data and the housing related experience to provide real analysis for your proposed new community, land purchase, or real estate investment. You know us by our 25+ year reputation!
Home Builders Marketing, Inc.
Greg Burger – Chief Operating Officer
RL Brown – Founder and Chairman