Jobs and Housing Trends in Phoenix
It's no secret that the industry of property management in Phoenix, Glendale, and other area cities was hit extremely hard by the recession. Between 2006 and the end of 2011, home prices in Phoenix fell by 55%, and during 2009 Arizona's foreclosure rate was the third highest in the nation. However, according to a recent Wall Street Journal article, the Phoenix market has shown a broad turnaround thanks mostly to the emergence of new and first-time home buyers. This news brings hope to Phoenix property managers that Phoenix's real estate market has indeed "hit bottom", and could be on the way to recovery.
The most important question regarding Phoenix, AZ, property management is: When will it be safe again to adopt a bullish mindset? A large part of successful property management in Phoenix has to do with timing, and it's crucial to judge whether the overall Phoenix economy is on a permanent upswing. After all, the U.S. economy is by no means steady: It could easily experience a double-dip recession, or the economy could be hampered for most of 2012 if gas and fuel prices continue to rise.
Economic recovery can depend as much on overall consumer confidence as on tangible factors such as job growth. According to a January, 2012, poll, Arizona's consumer confidence index was at its highest level since May, 2008. This is good news for Phoenix and Glendale property investors, because in every economic climate there is an emotional factor to the rise and fall that even experts have a difficult time explaining. Nonetheless, smart Phoenix property managers will know it takes more than a feeling of confidence or wishful thinking to make their investments pay off.
A good strategy for Phoenix property investors is to wait for the local job market to demonstrate strong growth before they funnel money back into real estate. According to a study by the W.P. Carey School of Business at ASU, Phoenix ranked as the 7th best city in the U.S. between January 2011, and 2012 in terms of job growth. This is thanks to large companies like Amazon.com Inc., Intel Corp., and MiTek Industries who recently having been adding jobs in the Phoenix area. And as the job market in Phoenix becomes stronger, so too should the property management industry, since the two areas are closely connected.
So, for property investors, the next year should bring much clearer answers on the overall trend of both the local economy and the housing market.