New Home Buyer Cancellations In Phoenix
Let’s start off with a quick school lesson. Economics 101-When a President spends like a teenager with a credit card, you are going to have inflation. The Feds have to raise rates to cool down the rate of inflation. In turn, rising interest rates lowers the mortgage amount that consumers can afford. The latest numbers show permits for new homes fell more than 20 percent in February. Homes that were resold also dipped more than 11 percent. Last year the average base price for new homes was $386,000. This year the median closing price was $267,000. Buyers are now cancelling their contracts because they can’t sell their existing homes in the slowing resale market. To be honest, the market is finally normalizing and leveling out.