If recent data is any indication, 2015 is on track to be a better year for those in the Phoenix area construction industry than 2014. Local data shows that construction is on the rise and more builders are requesting building permits.
March 2015 showed a significant increase in both housing starts and existing home sales in the greater Phoenix area compared to March of the prior year. According to RL Brown Housing Reports, a real estate research firm, building permit requests were on the rise for both the first quarter of the year, up 25 percent, as well as for March, up 37 percent, with 1,373 new construction housing permits issued in March. This March number is significant because it is the highest number of permits issued in a month since July, 2008.
New home sales and existing home sales also showed a significant increase in March 2015 compared to March 2014. New home sales increased 11.5 percent from a year prior, while existing home sales increased 28.9 percent from the previous year.
These numbers are good news for contractors and builders, as they suggest that construction is picking up momentum. Moreover, recent employment data reflects this as well. A report from the Associated General Contractors of America indicates that with 2,300 new jobs, the construction sector in the greater Phoenix area had a three percent gain in employment in March.
As builders and contractors negotiate new construction contracts they may encounter problems. From the inevitable, but nonetheless frustrating, delays to problems with subcontractors, suppliers or permitting authorities, the construction industry presents many potential bumps along the road to a completed project.
Should a contractor or other party involved in a construction transaction find him or herself involved in a construction dispute, it may be beneficial to learn more about the situation and legal options. It is important to keep construction projects moving toward completion and to take advantage of the recent surge in home starts and home sales.
Source: Phoenix Business Journal, “Phoenix housing starts, home sales surge in March,” Mike Sunnucks, April 17, 2015
