Rising mortgage interest rates had a direct impact on land buying activity in metro Phoenix as homebuyers hesitated on purchasing new homes.
"The buying pause will allow the developers and builders to focus on future projects already in the pipeline," Daniel said., advisory manager for Zonda housing research firm, said he has seen homebuilder land acquisition activity slow in recent months, corresponding with the slowdown in overall consumer demand for new homes.
Most new land purchases by homebuilders in the Valley have been paused, mostly dependent on the vintage date of the contract date, he said.Builders are very focused on home price discovery as they move through their work in progress, or WIP, he said. As builders work through their WIP, they will be stockpiling cash as they limit their land and lot improvement spend, which is down 20% compared to the third quarter last year, Vogel said.
Good :)