INSIDE TUCSON BUSINESS:  Mon., Oct. 5, 2009

Number of home building permits slowly going up

By Joe Pangburn 

 
Slowly, new home builders in the region are continuing to take out more home building permits. In August builders took out 235 permits, the most of any month this year, according to Bright Future Business Consultants, which tracks the new home building industry in Southern Arizona.

The year’s low was set in February when just 99 permits were pulled.

“Indications are that builders are putting product in the ground to ensure that they have product ready through November when the $8,000 government credit to new homebuyers ends,” said Bright Future’s John Strobeck in his monthly housing letter.

Among jurisdictions, Sahuarita issued the most single family home permits, 63, followed by Pima County’s 56 permits, Marana’s 44, Tucson’s 43 and Oro Valley, which issued four permits. 

The average new home price in August was $220,264, up $9,000 from June and July, but down by more than $32,000 from August 2008.

Foreclosure sales are continuing to put downward pressure on new homes. The median new home price in August was $181,988, the lowest median of the year, down $3,000 from July and down more than $50,000 from August 2008.

There were 330 foreclosure sales in August, the third highest volume month of the year. They accounted for 31% of home resales for the month.

Without foreclosures, the median resale home price was $175,000 but even that is a record low for 2009. The previous record low was $178,000 in June. In August, 65% of foreclosure sales were priced below $150,000.

New construction homes accounted for 17% of all sales priced below $150,000 in August and 45% of sales in the $150,000-to-$200,000 price range.