I thought I would put together a few recent news releases about what’s happening in the Arizona Business and Housing market as of September 2012.
So, lets start off with the bad news. People are still going into bankruptcy. Well people are always using bankruptcy protection, but the rate is still high. But it is way below the peak. Read more here.
Phoenix-area bankruptcies continue to drop at a double-digit pace, falling by more than one-fourth in August compared with August 2011.
The 1,809 filings last month were down nearly 26 percent from 2,431 in August 2011, according to the U.S. Bankruptcy Court in Phoenix. The latest results marked the 19th straight month of bankruptcies declining on a year-over-year basis and the 14th consecutive double-digit decrease.
For 2012 to date, Valley bankruptcies are down nearly 26 percent.
What I thought was great is the fact credit card debt has dropped below $5,000 per person in the Valley. Bankruptcy has dropped nationally too.
Next, Home Values!
Believe it or not, I have noticed a little pull back in values. After soaring 30%, a little pull back was expected. Home sales have slowed, as they have the months prior to a presidential election every election year. So, this is a normal trend. All expectations are for us to get back to a normal growth rate of about 5% in values year over year.
Think about that…. If you are an investor or just a regular buyer, what the heck, you put 20% down. Home values grow 5% per year. In 4 years you double your money, on paper at least. To capture that gain you have differed maintenance and transaction fees.
OK, so lets wait 10 years! The return on real estate over the next 10 years is going to be absolutely CRAZY!
You should call me now, Jeff Cameron, 480-652-2004 and buy a home!
| Type of sale | July 2012 median price | July 2011 median price | Percentage change |
| New homes | 225,566 | $216,000 | 4.4 |
| Normal resales | $171,000 | $174,000 | -2 |
| Investor flips | $148,750 | $126,148 | 17.9 |
| Short sales and pre-forclosures | $127,300 | $115,000 | 10.7 |
| Bank-owned sales | $135,750 | $90,000 | 50.8 |
| Fannie- and Freddie-owned | $126,900 | $95,500 | 32.9 |
| HUD sales | $91,900 | $66,300 | 38.6 |
| Trustee sales to a third party | $117,460 | $87,000 | 35 |
| Total | $149,000 | $114,000 | 30.7 |
WASHINGTON – — U.S. home prices jumped 3.8 percent in the 12 months ending in July, according to a private real estate data provider. The year-over-year increase was the biggest in six years, further evidence that the housing market is steadily recovering.
CoreLogic says home prices also rose 1.3 percent in July from June. That’s the fifth straight increase in both the monthly and year-over-year price indexes.
Homebuilding
New-home permits July 2012: 1,303.
New-home permits July 2011: 624.
Percent change: 109.
New-home permits through July 2012: 7,424.
New-home permits through July 2011: 3,920.
Source: RL Brown and Greg Burger’s Phoenix Housing Market Letter
What Next?
We need more jobs and jobs of quality that pay well. Arizona has created 55,000 more jobs comparing July 2012 to July 2011. 48,500 of those were in Metro Phoenix and Scottsdale.
Construction made up 5,600 of those jobs. I believe the increase in building over the next year will be by 10,000 homes. They say each new home creates 2-3 jobs. That is 25,000 to 30,000 new jobs in construction alone. This will create more jobs and Sentiment. The Sentiment is most important. This could really make a difference in the Economy.
All I want to do is get past this Election and get life back to normal. Work hard and help people find and sell homes.
I hope you enjoyed the update!
Just my opinion…Jeff Cameron
MRW Homes
480-502-7699
480-652-2004