Sector Update: 

LAND

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© Copyright 2017 by MP Media, LLC

strong market 

brings big opportunities, 

interesting challenges

Strong market fundamentals are creating  

a growth environment for real estate and homebuilding,  

but 2017 also holds daunting challenges.  

Success will depend on developing new strategies.

“Phoenix is in a much different place than following the 

last boom,” 

said Greg Vogel, Founder and CEO of the Land Advisors Organization, 

which hosted the 7

th

 Metro Phoenix Land and Housing Forecast on Dec. 7. More than 500 

attended the successful event, which was first presented in 2010. The Phoenix economy is 
more diversified, jobs and population are growing, and billions have been invested in major 
public projects. But there are constraints, too. Access to financing is still tight, labor is in 
short supply and consumers have changed their ways and their taste.

The resale market in Phoenix has been 
outperforming homebuilding, but the 
dynamics appear to be shifting.

 

///

 Resale 

homes in Phoenix are “very affordable,” 
Vogel said, with the third quarter median 
price, at $235,000, coming in lower than 
the national. Appreciation for homeowners 
across the Valley is 7.5 percent, representing 
$20.5 billion in new wealth, he added. Many 
homeowners who were under water have 
surfaced, and those who were foreclosed are 
coming out of the penalty box. The supply of 
resale homes continues to be tight, however. 
“This should drive traffic to new homes,” 
Vogel said.