I was reading an article on CNBC the other day and it interviewed a home builder who is starting to break ground again. Check it out.
Mike Ripson hasn’t built a home in three years, but he is about to. He has been sitting on one hundred sixty acres of land just outside Phoenix, Arizona, which he intends to divide into 121 one-acre lots.
“Now’s the time because we’ve been studying the marketplace, and we noticed beginning late last summer, early fall, that for homes priced less than $100,000, the market was becoming very tight,” says Ripson, whose company is celebrating its ten year anniversary this week.
“Over the last several months that price point has increased such that today, homes priced less than 300,000 dollars, there’s less than a thirty-day supply in the marketplace,” Ripson adds.
The supply of homes for sale in the Phoenix area is down 42 percent from a year ago, and foreclosures are down 52 percent, according to Michael Orr, of the Real Estate Center at ASU. That is bringing demand back to the builders.