Residential building permits are at their lowest point in 15 years, according to the Phoenix Housing Market Letter published Wednesday by RL Brown Housing Reports.

In October, just 1,325 permits were issued vs. 2,341 a year ago. Though the drop is significant, the report suggests that home builders are selling off excessive inventory "showing signs of a stabilizing of the new home market in the metro Phoenix region."

There were 3,159 new-home closings in October, a drop from 4,451 in October 2006, but a "very slight uptick from the previous seven months," the report stated. Resale home market plunges 44 percent

There were 3,533 resales in October compared with 6,357 in October 2006, a 44 percent drop. Condo conversions fared even worse, just 261 sales were recorded in October compared with 674 in October 2006, a 61 percent drop.

The report predicts that the housing market will be slower to recover in communities on the fringe of the metro area, such as the city of Maricopa where 1,140 properties are for sale. Just 20 of those closed last month. Those numbers, according to the report, "represent a 57-month supply."

Source: http://www.bizjournals.com/phoenix/stories/ 2007/11/26/daily28.html