The latest data from the Bureau of Labor Statistics shows Arizona enjoyed the 3rd highest spike in construction job growth in May, trailing only Texas and California.
A recent report by the U.S. Department of Commerce states a decline in housing starts due to the slowdown in the apartment and multi-family sector. However there was an increase in permits, which is an indicator of future starts, and also single family housing starts currently underway.
By purchasing and holding tens of thousands of existing homes, investors have created a demand where little had existed and drastically reduced the inventory of homes for sale, which has helped boost prices over the past six months. The investors' goal is to buy and rent out a large portfolio of homes and collect monthly lease revenue until home prices increase to significantly higher than what the investors paid, at which time they will sell the homes. This snatching up of homes by investors makes it nearly impossible for traditional homebuyers in certain neighborhoods to acquire an existing home without paying a premium to an investor, but it also raises serious concerns about what will happen to the housing market when all those investors decide to sell. The concerns about the destabilizing effect investor dominance in the housing market could have on local communities has led to programs designed to help offset this negative effect. Fannie Mae, the first bank-owned home seller to express concerns about this destabilizing effect has implemented a program called First Look, which prohibits investors from bidding on Fannie Mae-owned homes for the first 15 days after they are listed for sale. Read more...
In what seems like promising news, figures released this week by Associated General Contractors of America indicate an increase in construction employment for the state of Arizona.
Well, we had to know when Ben Bernanke stated that QE2 would be the last of the Fed injecting money into the economy, it would only be a matter of time before QE3 came along. It appears the money printing madness will continue.
The Washington Business Journal outlines last week's economic news. There seem to be some positive signs, but no slam dunks here.
This Phoenix Business Journal article outlines the positives and negatives of recent economic figures in the state of Arizona.
Third quarter earnings may look strong for many banks, but worries about the European sovereign debt crisis and the increasing squeeze on smaller banks will likely lead to increased consolidation as stronger mid-size banks will acquire the strongest community banks and troubled banks will be shut down. Read more here: Money Talks: Western Alliance repays TARP funds with SBLF funds.
It seems that all those boom time projections for explosive and even unmanageable growth in states like Arizona, Nevada and Florida have missed their mark. This New York Times article touches on a trend reversal that has all but stalled America's migration from cold and snowy to warm and sunny...at least for now.
Arizona had 264,000 fewer jobs in September than before the Great Recession began in Sept. 2007. On a percentage basis, only Nevada has experienced more severe job losses than Arizona.