Drop in the Number of Phoenix Real Estate Permits Issued in July

Building permits issued for Phoenix real estate development dropped by more than 23 percent since July 2004. This is of interest not just because it is the largest drop in 13 months, but because it is an indication "that the market could be reaching a peak, especially on the resale home side, where listings are up and selling time has increased."

Phoenix real estate building permits generally indicate the strength of the local market. "There were 5,077 permits issued in July, compared with 6,608 in that month a year ago," and while some may think the drop is due to "a deflating housing bubble," Phoenix real estate developers claim its nothing more than "delays in getting the city approvals necessary to open new subdivisions."

Because most of the new Phoenix real estate development is taking place on the outskirts of the metro area, local officials haven´t been able to keep up with the number of necessary inspections of subdivision plans, sewers, streets and power. The fact that there are so many applications that the "state Department of Real Estate said it is 2½ months behind in reviewing" them, may be a sign that there is still such a high demand for Phoenix real estate that both developers and local officials are scrambling to keep up.