Spec/Inventory Home Count Slowly Depleting Across the Valley

New Homes in the Phoenix Valley are just about everywhere and now seems to be a great time to buy a brand new spec/inventory home because there are so many to choose from, but the inventory is slowly being sold.  In fact, there are currently 3,613 new spec/inventory homes in the valley – 756 less than six months ago.  Although this inventory has gradually been depleting over the last six months it should be noted that this inventory count is still 50% larger than the previous record (prior to January 2006) by 1,213.

This, combined with record levels of resale homes on the market means home buyers have so much to choose from.  In my opinion, prices will continue to drop in resales while builders will continue to skirt around price drops with “special incentives.”  Go to any new home builder right now and you can get fantastic incentives that are tied to their mortgage lender.  This means, if you use, let’s say KBHomes’ preferred lender – Countrywide KB – then you’ll get a $20,000 design studio credit or a $35,000 incentive (off the price of) a spec home.

All in all, pricing in the valley should continue to drop, although not by much.  This is generally offset, however, by rising mortgage interest rates.  What this means to buyers is that although they may be paying less this year and over the next six months to a year, their monthly payment will be the same, if not more, due to interest rates.

Information from UHM.