On March 9, the Arizona Office of Economic Opportunity released job projections. Jobs in Arizona are projected to increase by 138,553 from the Second Quarter of 2016 through the Second Quarter of 2018. The majority of the increase in jobs is expected to be in Greater Phoenix. Jobs in Greater Phoenix are projected to increase by 115,258. Greater Phoenix in this report is defined as Maricopa and Pinal counties.
This increase in jobs, along with a growing population, will continue to fuel the demand for residential housing. Greater Phoenix is currently in the midst of a very hot demand for previously owned single family properties in many price ranges.
According to the Arizona Regional Multiple Listing Services, Inc., sales of previously owned single family homes in the first two months of 2017 are fourteen percent higher than for the same period last year. The number of sales in January and February 2017 were 9,999 compared to 8,777 for the same period last year.
While sales are up inventory is down. The number of previously owned new monthly listings in January and February 2017 were 5% or 860 less than for the same period last year.
When writing a contract, be prepared for your buyers to compete against multiple offers when a property is priced at market.
Expect prices to go up in many prices ranges.
The majority of the increase in jobs will be in Greater Phoenix
To read the report go to https://laborstats.az.gov/sites/default/files/documents/files/ST_IndProjReport.pdf
| 2016-2018 Projected Job Growth by Region | ||||
| Area Name | 2016 Estimated Total Employment Level | 2018 Projected Total Employment Level | Numeric Growth | Annualized Percentage Growth |
| Arizona | 2,852,181 | 2,990,734 | 138,553 | 2.4% |
| Phoenix MSA1 | 2,051,434 | 2,166,692 | 115,258 | 2.8% |
| Tucson MSA2 | 382,515 | 392,583 | 10,068 | 1.3% |
| Balance Of State3 | 414,363 | 427,176 | 12,813 | 1.5% |
| 1) Maricopa and Pinal Counties | ||||
| 2) Pima County | ||||
| 3) All other areas in Arizona less Maricopa, Pinal, and Pima Counties
Arizona’s industry employment projections are produced in conjunction with the U.S. Department of Labor (U.S. DOL), Employment and Training Administration (ETA).
Fletcher R. Wilcox is V.P. of Business Development and a Real Estate Analyst at Grand Canyon Title Agency. He is author of www.TheWilcoxReport.com. His market analysis on residential real estate in Greater Phoenix has been mentioned in the Wall Street Journal, Bloomberg News, MarketWatch, HousingWire.com, National Mortgage News, Arizona Republic and the Phoenix Business Journal. He has been a guest speaker on local radio and both local and national TV. He teaches real estate agents strategies on marketing and instructs real estate classes in residential contract writing and Arizona title procedures. Fletcher started snowboarding in 2006. He is not very good. Fletcher may be reached at mailto:FWilcox@GCTA.com 602.648.1230 |
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