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Zero new homes sold in Tempe and Avondale in April
Not all Valley cities are created equal for new-home sales. The latest real estate report from Arizona State University shows Gilbert and Goodyear leading the way in that sector of the housing recovery, but builders in other cities are still idle. Builders in Gilbert sold 114 new homes in April. Goodyear was in second place with 79, but if you look at the bottom of the list you will find places like Tempe, where the number of new homes sold was…zero.
"That’s really because there’s not much land left in Tempe, it’s pretty much built out, all it’s borders surrounded by other cities, and there hasn’t been a great deal in Scottsdale either because the real demand has been in a price level that’s below much of Scottsdale," said ASU housing researcher Mike Orr.
Orr said new home sales in Avondale were also at zero in April and have been for a while. The impact fee that Avondale charges builders to construct new homes is higher than surrounding West Valley cities, like Goodyear and Tolleson. Other housing experts say new subdivisions are coming online in Avondale, but it will not catch up until the supply of cheaper land in surrounding cities is used up.