Arizona on the Rise
September 18, 2013
In contrast to many other hard hit states, conditions in Arizona's housing market are improving, and quickly. The prompt clearing of excess inventory has paved the way for increasing prices, helping underwater borrowers rebuild equity in their homes, says Andrew Winkler of the American Action Forum.
Those improvements come not through federal aid, but through a diversified economy with growing employment and the speedy clearing of distressed properties.
- Maricopa County, home to most of the Phoenix metropolitan area and just over 60 percent of Arizona's population, has seen its unemployment rate fall, on a year over year basis, for 30 months straight.
- Arizona's non-judicial foreclosure process has allowed distressed properties to be taken off the market faster than similarly hard hit states, driving prices upward.
Residential construction building permits have been increasing but are still generally at very depressed levels. As the glut of foreclosures continues to clear, supply will constrict even further and spur greater home construction. This is already beginning to happen. In fact, permits in Arizona were 24 percent higher in June this year over last year.
Source: Andrew Winkler, "One Year Later: An Updated Look at the Housing Recovery in Arizona," American Action Forum, August 2013.
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