FHA Loan Limits increase Strengthening Az Market

The FHA loan limit max is stabilized in the mid 290K’s while the Arizona local market still shows a median home value price in the 240K range. The below spread sheet that shows just how strong the median price range is in the Phx metropolitan area. The $200K-240K price range makes up nearly 25% of total homes sold and/or currently pending in the AZ market which is a very considerable amount, considering the range of $50K. That partnered with fact that the negative numbers taper off almost perfectly in the lower values as it rises towards the median price range. The numbers also reflect the growth and stability economically as every price point above the 180K mark shows positive growth.

Phoenix area’s current absorption rate sits at approximately 2.5 months which is nothing short of an incredible number. That partnered with the rumors that several large Fortune 500 companies have plans to move into the Valley 2019 looks to be a great year for our market.

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Home Sales hit 11 yr high in 2018

2018 ended up being the best year for existing-home sales in 11 years, according to the National Association of Realtors.

Existing-home sales dropped 3.6% month over month on a seasonally adjusted basis in December as inventory shortages were severe. But even with that decline, sales for all of 2018 were up 1.1% over the prior year, hitting a sales pace of 5.51 million – the highest since 2006.

NAR’s chief economist, said: “The lack of supply over the past year has been eye-opening and is why, even with strong job creation pushing wages higher, home-price gains – at 5.8% nationally in 2018 – doubled the pace of income growth and were even swifter in several markets.”

Inventory was tighter than ever and hit a new all-time low. Total US inventory at the end of December was 1.48 million existing homes available for sale – an 11.4% drop from the year before. Unsold inventory is at a 3.2-month supply at the current sales pace – the lowest level since NAR began tracking nearly two decades ago.

The median existing-home price in the US last month was $246,800, a 5.8% spike from December 2017. December of 2018 also marked the 70th consecutive month of year-over-year price gains.

Windmill area developing

There are currently many ongoing building projects in the area which is bringing great improvement to the roads and infrastructure of the surrounding area and in turn increased value to the Windmill-property. All of the surrounding lots are being developed and our neighbour is currently in the process of building a spec home.

Boulder Vista Estates

One of the neighbouring Boulder Vista properties is beginning the process of building a new house on their parcel. Our parcels are located at the 3,000 ft elevation mark on the South Face of Black Mountain and contain some of the most prestigious and unobstructed views of the Phoenix area anywhere in the valley of the sun.

Arizona economy expected to topple national numbers

Arizona will topple the expected U.S. growth rate of 3 percent in 2007 thanks in large part to the state's population boom, according to Arizona State University economist Edward Prescott.

Prescott, the keynote speaker at the Arizona Bank & Trust Economic Summit 2007, "Trends to Bank On," said Arizona will continue to outpace national trends, but cautioned "it won't last forever."

"The Arizona trend dominates," Prescott, a 2004 Nobel Prize winner and chair of economics at the W.P. Carey School of Business at Arizona State University, told the more than 300 who attended the Tuesday morning breakfast seminar at Phoenix Country Club.

Katie Pushor, chief executive and president of the Greater Phoenix Chamber of Commerce, said the state is the second destination for domestic migration next to Florida and the eighth internationally.

"People want to move to this state," she said. "There is an overwhelming perception of opportunity here."

Pushor said job creation will focus on serving the growing population, namely the health care, construction, retail and consumer services, and the hospitality sector, which is being boosted by three college football bowl games, PGA events and the Super Bowl in 2008.

Unemployment is the lowest in 25 years, hovering under 4 percent, but escalating housing prices are keeping some workers from moving here, Pushor said.

"Affordability is really an issue for the work force," she said.

Arizona exports also could be stronger. "We are not participating in that global economy yet," Pushor said.

In his 30-minute address, Prescott said "the dollar will not crash" -- despite it being outpaced by its chief competitors, the euro, the British pound and the Canadian dollar.

Chris Casacchia
The Business Journal