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Another sign of cooling housing market: Majority of Valley municipalities issued fewer homebuilder permits

Framing
Posted at 8:50 AM, Jun 16, 2022
and last updated 2022-06-16 11:50:11-04

PHOENIX — More than 60% of the municipalities tracked by the Home Builders Association of Arizona have issued fewer single-family homebuilder permits this year through April than the same period last year — another sign the Valley's housing market is cooling.

Overall, the 21 municipalities tracked by HBACA issued 11,967 single-family homebuilder permits so far this year through April, up 2% from 11,794 during the same period in 2021. Of those 21 municipalities, 13 of them issued fewer permits year to date through April.

The drop in April permits was a precursor to what we are seeing play out today, said Steve Hensley, senior manager of Zonda Advisory.

"Demand has pulled back as rising inflation, rising mortgage interest rates and economic uncertainty is settling in," Hensley said. "The drop in permit activity is likely partly a function of builders pulling back on their speculative inventory building in anticipation to slowing demand. Market conditions are shifting as well as homebuyer strategy."

Read more of this story from the Business Journal.