Central Phoenix Real Estate Outlook for 2014
There’s all this talk about “the market” and how it’s constantly “recovering” since it crashed back in 2008. It’s hard to understand all the industry speak if you’re not familiar with the industry yourself, so that’s why we’re here to help.All of us here at Phoenix Urban Spaces are dedicated to providing you with top notch and up to date real estate news about Central Phoenix.
Arizona was one of the hardest hit states by the economic crisis nearly five years ago.
The real estate market plummeted and many people lost their jobs.
Thankfully, in the past year Arizona has made quite a comeback and hopefully it’ll continue on into the next year.
We’ll observe various trends and statistics that influence the real estate market and what these trends mean for Central Phoenix Real Estate in 2014.
Job Growth
Arizona was hit pretty hard by the recession and fell further than other states.
Although it is significantly catching up, the road to recovery is still a long one.
In 2010 Phoenix hit a high unemployment rate at just over ten percent. Job growth is an important factor in how the economy, and in turn the real estate industry, recovers. If there are no jobs, no one is going to want to move to Phoenix, and if people aren’t looking to move to Phoenix then the housing industry is going to remain stagnant.
Economists predict that Phoenix will see mild job growth in 2014. So far this year Arizona has added nearly 52,000 jobs and it is projected to add another 60,000 next year. Although the state is expected to see modest job growth, it is still on track to being one of the fastest growing markets. Economists are also optimistic about the fact that homeowners are beginning to owe less than their home is worth, which cuts down on short sales and foreclosures.
Demographic Influence
Central Phoenix is a popular destination for Americans over the age of 55, and slowly but surely these individuals are starting to relocate again since recovering from the recession.
On the other hand, millennials and younger generations are not inclined to move into Phoenix areas, because of the lack of job opportunities. This group is moving to locations with a recovering and flourishing job market. This trend supports the stereotype that Central Phoenix is a destination for retirees looking to enjoy a resort lifestyle, while young adults are drawn to busy cities where they can kick-start their careers.
Older generations who are more attuned to the a Central Phoenix lifestyle will be beneficial to the area, because they are likely to be more affluent than younger residents and Phoenix offers them the lifestyle they are seeking.
Although economists would eventually like to attract younger generations with high-tech jobs and higher wages that can stimulate the Phoenix economy and market, this is not something to worry over for the time being.
What is Phoenix Doing to Stimulate Its Recovery?
Central Phoenix has centered its focus on technology, education, infrastructure and overall improving the quality of life for its residents.
The city and its leaders are taking initiative and investing in bold and creative strategies to find solutions for their current economic challenges. Mesa has five new colleges, an expanded infrastructure and plans to invest in its airport.
The city also set up iMesa, which functions as an online town hall where residents can post ideas and vote on them directly to influence policy. Involving citizens in the recovery has proven to be a great idea, because when the residents feel involved they are more likely to invest in improvements to their community.
What’s in Store for Central Phoenix Real Estate in 2014?
During the winter months the real estate industry starts to dwindle down. People are less likely to look for a new home and to move while school is in session or during the holiday season.
This is not bad though, because this slow down is a sign of normalcy in the industry.
Phoenix is rapidly and continuously rebounding and pushing ahead. Economists predict a 2.8% increase in job growth over the next year, which is a positive sign of recovery. Municipal and private leadership is aggressively encouraging residents to take an active role in the recovery by involving them in decisions and honestly informing them of the current economic situation.
Phoenix and the surrounding areas are focusing on its healthcare jobs and investing money into higher education. The economy and the real estate market can’t be rejuvenated overnight through home sales alone, it’s a group effort that builds and stabilizes over time.
Real estate is a very unpredictable field, and although the market seems to be recovering for the time being, you never know what tomorrow will bring.
Things are obviously not going to get better overnight, but slowly and surely Central Phoenix is inching towards a steady recovery. If you’re in interested in Central Phoenix Real Estate or would like to chat about current pricing and market trends contact Roberta Candelaria for any questions, or simply for more information.