PHOENIX — Rising mortgage interest rates had a direct impact on land-buying activity in metro Phoenix as homebuyers hesitated on purchasing new homes.
In research conducted exclusively for Phoenix Business Journal, RL Brown Housing Reports data shows how the number of land transactions continued to decline month by month.
In total, homebuilders and developers have paid a total of $4.3 billion for 1,186 vacant land deals around the Valley so far this year.
Jim Daniel, president of RL Brown Housing Reports, said he noticed a drop in sales of custom and builder land, which aligns with rising interest rates and a drop in single-family homebuilder permits issued by municipalities.
"The buying pause will allow the developers and builders to focus on future projects already in the pipeline," Daniel said.
