New home permits rose nearly 77 percent in March from February, but were well below March 2010’s figure of 179.
There were 115 permits issued to Albuquerque-area home builders in March, according to DataTraq’s New Housing Market Letter, published by Jan DeMaggio.
D.R. Horton pulled 28 permits in March, followed by Pulte‘s 25. Vista Vieja and Presidio were the two most active subdivisions in March, as lower-priced homes dominated the market. Of the permits obtained, 68 percent were for homes priced between $90,000 and $200,000.
In the past 12 months, Horton has pulled 343 permits, leading all builders, followed by Pulte’s 238. Paul Allen Homes has been the most active locally owned builder, with 80 permits.
This is great news for the Albuquerque real estate environment. While the number of new homes being built is one indicator of how the overall market is doing, we don’t want too many homes being built, as causes the purchaser’s older home to become vacant. Unless there is a commensurate amount of first time home buyers or Albuquerque transferees entering the market, it causes an over supply of homes, which can affect home values.
These numbers show a steady growth over last month and one that I feel is healthy – neither too many new home permits, or too few, but just right.