|
|
Home | Submit Press Release | Advertise | Submit Website
(EMAILWIRE.COM, August 07, 2013 ) West Yorkshire, UK -- The demand for new homes is picking up (post recession) in Phoenix, Arizona but a number of factors are preventing supply and demand from reaching equilibrium. Every member of the housing industry in the area is proceeding very cautiously after the burst of the housing bubble.
Builders in the area are finding their saleÂ’s offices full of homebuyers every weekend. Builders are beginning to purchase more land for new subdivisions and new houses are starting to spring up around the Valley in response. As Phoenix begins to pull out of the recession, these are all promising signs that the housing market is picking up. However, the rate of recovery is not gathering speed as fast as anticipated. New-home construction is accelerating at only half the rate that industry experts expected. The reasons they give are threefold.
First, the region has developed a shortage of construction workers over the economic downturn. Executive director of the Arizona Construction Association, David Jones says “Contractors are fighting for framers, painters, drywallers and plumbers.” Immigration laws have caused many of the cheap, unskilled labor to move out of the area. There are also shortages of skilled labor as the downturn has caused these artisans to retrain and find work in different professions. “To keep up with construction demand now, contractors need to pay workers more money,” Jones said. This may attract them back into the industry.
Similarly, subcontractors are in short supply and those who are still in the business are cautious. Others are in dire straits financially and do not have the means to ramp up their operations quickly. Prime building lots are also in short supply, as those that have been vacant over the past few years are quickly bought up. As they watch prices continue to rise, some builders are holding on to these prime locations in the hopes of getting a better price in the future.
For homebuyers, this hoarding of supply will likely cause new-home prices to continue to rise faster than average. According to RL Brown Housing Reports, in the past year, the average price of a new home has jumped 24 percent in the region. Andy Warren, president of Scottsdale-based Maracay Homes says, “The jump in new-home buying during the past 18 months did stress the building industry. But the price appreciation is helping the industry get on its feet again.”
About PloughcroftGroup.com
Ploughcroft Group (www.ploughcroftgroup.com) are high quality roofing contractors offering tailor made solutions for traditional, flat and heritage roofs including high level access roofs. Ploughcroft can help you through all stages of the process.
Ploughcroft Group
Customer Service
01484 72 33 44
info@ploughcroft.co.uk 
Source: EmailWire.com
|
|
