AZ #2 in job growth
Hi!
In the last blog post on retail construction we mentioned that one of the key factors that will help the market rebound faster than other areas is our area's strong job growth. Well, statistics were just released showing that Arizona remains stronger than all the other states except one. Arizona rated #2 in job growth behind Utah in July. The non-farm growth rate was 2.8 %. Now this is slower by almost half of what it was at this time last year, which reflects the nationwide economic slowdown, but shows that we are still beating the average (which was only 1.1%). Unemployment is still low at 3.7%. To see more statistics on this see the AZCentral article on the subject.
We mentioned that we feel that Arizona will rebound faster than other areas. We don't mean that it will necessarily start a rebound earlier than other parts of the country, but once that economic rebound starts we expect that it will lead the average.
On another note, another lender has ceased making loans. First Magnus which owns Great Southwest Mortgage has stopped lending. This loss coupled with the closing of AHM last week takes a big bite out of the lender pool here in the Phoenix area. Fear not if you are looking to buy. Yes there are issues in the mortgage market, but there are still many lenders out there that can serve your needs. What it does mean however, is that the lending institutions are getting stricter on their underwriting, and that means it will become harder for someone with credit challenges to get a loan.
Another factor effecting the market is general perception. There is a lot of media coverage about the real estate and mortgage woes. We think that this has become a bit of a vicious cycle. We are not saying there aren't issues out there. But this is a great time to buy a house especially if you need to. This is a buyer's market. Although not every seller is willing to bargain, there are many out there that need to sell for one reason or another, and many are willing to deal. Most people that are waiting are doing so because of fear that the market prices are continuing to drop. This is true in some but not all areas. If you can find that desperate seller, then you will probably be in a good position even if the prices drop a little more. This is a great time to buy a new build. Builder's inventories are high, and they are dealing on specs. It used to be that the builder would never negotiate a price. Not anymore. If you want a spec, chances are you can negotiate.
If you are considering purchasing, let us review the options with you.
Adam Tarr, ABR, e-Pro
Sharon Kotula, ABR
RE/MAX Excalibur
Scottsdale, AZ
480-483-3333
info@WeAreAZRealEstate.com
www.WeAreAZRealEstate.com