PHOENIX — Both new home closings and construction permits in the Phoenix area have hit their highest levels since 2008, an Arizona State University report said.
The report from the university’s W.P Carey School of Business said $514 million worth of new homes were closed on in December.
Three cities led the way for closings of new homes: Peoria saw 196 sold, while Mesa followed close behind with 183 and Gilbert saw 174 keys to a new home given to their first owner.
New home construction permits issued also peaked in December, hitting levels unseen since May 2008.
The report said 1,433 permits were issued, which was up 38 percent from December 2013.
Michael Orr with the W.P Carey School said most permits were issued in the East Valley.
“In Mesa, it’s mainly on the east up in the northeast and the southeast side between the 60 freeway and Queen Creek; a lot of activity there,” he said.
Orr said an increase in new home sales and construction is a sign the Valley’s real estate market is on the right track.
“As 2016 starts, the market is in much better shape than it was at the start of 2015,” Orr said in a press release. “Every measure is looking better for sellers than it was in January 2015, except for the appreciation rate which has eased slightly.”
KTAR’s Martha Maurer contributed to this report.
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