Take it with a grain of salt because the sample size is tiny but John Burns Real Estate Consulting just published this graph which shows the Phoenix new home market has improved far more than most since last year.
Phoenix: Average net sales per community reached 2.5 this March, up from 1.7 last year. Builders in our recent survey reported net sales ranging from 0 to over 8.0, with notable strength at active adult communities.
The Virtuous Circle
Also keep in mind that construction is a larger part of the Arizona economy than for most states so when construction rebounds it creates a virtuous circle — construction rebounds –> stronger economy –> more construction –> stronger economy –> more construction.
Of course when construction tanks, it hurts the Arizona economy more than most. But don’t forget the advantages of the flip side.