Arizona Home Talk

Hot off the press!  Despite the housing market slowdown, 5 major markets in the USA have managed to gain in value.  The changes noted below are in the August price from a year prior for Single Family homes.

Top 5 Cities Where Prices Rose:

1. Seattle - 5.7% increase
2. Charlotte - 5.6% increase
3. Portland - 2.8% increase
4. Atlanta - 0.8% increase
5. Dallas - 0.5% increase

Top 10 Cities Where Prices Fell:

1. Tampa - 10.1% decline
2. Detroit - 9.3% decline
3. San Diego - 8.3% decline
4. Phoenix - 8.0% decline
5. Miami - 7.8% decline
6. Las Vegas - 7.6% decline
7. Washington D.C. - 7.2% decline
8. Los Angeles - 7.2% decline
9. San Francisco - 4.2% decline
10. Cleveland - 4.1% decline

 Source: The Wall Street Journal, Rex Nutting, and S&P Case-Shiller Index (10/31/07)

The cities in the Manufacturing Belt (poor, poor Michigan) are suffering.  People are leaving that area in droves.  With the cold weather, a struggling auto-industry and high unemployment rates, Michigan is a prime example of a GET OUT state.  Detroit alone has lost half it’s population over the last 30 years!  The unemployment rate in Detroit is 14%!  Now THAT is a city that is going to have a tough time recovering from the housing slowdown we are experiencing.  The good news is, Arizona is a COME TO state.  Phoenix in particular.  Phoenix has an unemployment rate at a steady 4.7%.  Phoenix has jobs, sunshine and people want to move here.

Ideally, you’ll take advantage of the low housing prices and make a wise investment.  After all, when you buy low and sell high - you make your profit buying, you only realize your profit when you sell.  Study that list of the Top 10 declining markets.  Imagine 5 years down the road.  Do people like to vacation there?  Are there jobs?  Is it warm?  Is there a University? Would you like to own a second home or a vacation home?  Why not buy something, rent it out, and have a positive cashflow and a new asset to add to your portfolio? Why not skip the timeshare and buy a vacation home?  Do you know 5 families that would share in such an investment property?

Just be sure it is in a COME TO state so you aren’t left jobless and out in the cold.