In order to gauge a correct ‘supply and demand’ temperature for today’s Phoenix, it’s important to understand how far we’ve come. (If you missed last week’s post, be sure to read part 1 of this series to catch up on the new definition of ‘supply and demand’).
Our market is a lot more complicated that it was in 2004/2005. Today, you do need a job to get a loan. It’s far more important than it was in 2005 when loans were as easy to get as raising your hand in class.
The nation’s unemployment rate had soared to over 10%. Maricopa County’s employment rate this past January? 7.1%. It then went down to 6.5%, then 6.6% and now we’re at 6.5%. Tucson is just a touch behind us at 6.7% unemployment.
Our biggest areas of growth are leisure and hospitality.
Because most of our losses were in leisure and hospitality, this is a good thing. A lot of the losses were in the construction and tourism industry when we went through our unemployment. Those industries are now in the top three and haven’t been since 2011. ~ Tina Timboer, The Cromford Report.
Education and health services were one of our top growths in 2011 and 2012. So now construction is starting to pick up, as is professional business services.
We’re one of the fastest-growing cities in the nation for bioscience (“Arizona bioscience sector adding jobs at four times the national rate“) and high technology. The average income in these sectors is $85,000 a year, an increase of 15% since 2011. As you see we have a lot of good things happening here.
We’ve had 30 companies either relocate or significantly expand their business out here – and 10 within just the last year; big ones like State Farm, Union Bank. ~ Tina Timboer, The Cromford Report.
These things we’re talking about are a big part of the macro view on the issue of supply and demand here in Maricopa County. It’s the why we know that home prices will continue to go up in the foreseeable future. How is this happening? What winds shifted (or are shifting) that is drawing businesses to expand or migrate here? How do we account for those 30 companies migrating here in the first place? And because they are coming here, why do we still have such a shortage of properties?
That’s right. Next week!
To buy or sell with the our city’s macro view in mind, please call or email me at 602-456-9388 or ken@getyourphx.com
[‘now and then’ photo by Melody Ayres-Griffiths]