Sep 17 - Active listing counts have started to rise significantly over the past 2 weeks, with the counts excluding UCB and CCBS listings moving up 6.1% from September 2 to September 16.
New listings are still scarce, but they are less scarce than a month ago. We have seen the 28-day count rise from the low of 6,486 on July 31 to around 7,100 this week. This is still well below normal (9,500 to 10,500) but demand is so weak that an extra 150 listings per week cannot be absorbed.
The increase in supply is causing the Cromford® Market Index to fall, signaling a weakening market balance for sellers.
This trend is looking like it will probably continue until mid-November when the usual seasonal decline in active listings is likely to kick in. This is good for buyers since they will have more choices and a little extra negotiation power.
The employment outlook in the Phoenix Metro is looking strong, with a plethora of tech companies expanding operations and starting new projects. This activity further strengthens and diversifies the local economy, bringing talented employees who demand a high standard of quality living spaces and amenities. One of the reasons our local economy suffered so greatly during the 07-08 great financial crisis was due to the concentration of housing construction related employment. While we are now more diversified, we are not fully protected from a recession. However, it provides a stronger, more resilient economic base in a better position to endure economic hardship.
Expansion and attraction projects in FY 2023 include:
•TSMC announced a total $40 billion investment and plans to build a second state-of-the-art semiconductor fab in Phoenix, creating4,500 total jobs. •LG Energy Solution announced a $5.5 billion investment to build a battery manufacturing complex in Queen Creek, creatingthousands of jobs. •American Battery Factory announced plans to build a $1.2 billion lithium iron phosphate battery cell manufacturing facility in Tucson, creating1,000 jobs. •Republic Services announced it will relocate its corporate headquarters to a newly- built facility in Phoenix, which will house 1,000 employees. •Discount Tire announced plans to develop a new corporate headquarters in Phoenix, including a 300,000+ square-foot office building that will house 1,100 employees. •Virgin Galactic announced a new Delta class spaceship manufacturing facility in Mesa, creating hundreds of aerospace engineering and manufacturing jobs. •Moov, a marketplace for used semiconductor equipment, celebrated the grand opening of its new U.S. headquarters and office in Tempe, supporting hundreds of jobs. •Benchmark Electronics celebrated the grand opening of its $20 million Precision Technologies facility in Mesa, supporting up to 100 new jobs. •Procter & Gamble (P&G), a global consumer goods leader, announced plans to invest $500 million to build a new fabric care product manufacturing facility in Coolidge, creating 500 new jobs. •EVelution Energy, an electric vehicle battery materials processing company, announced plans to build a $200 million cobalt sulfate production facility in Yuma County, creating 60 new jobs. •Blue Origin celebrated the grand opening of its new avionics and systems engineering office in Phoenix, creating hundreds of new jobs. •Corning, one of the world's leading innovators in materials science, announced plans to build a new optical cable manufacturing facility in Gilbert, creating 250 jobs. •FrameTec, announced the commencement of construction on its new $40 million framing truss manufacturing facility in Camp Verde, creating over 180 new jobs. •JA Solar will invest $60 million to establish its first solar module manufacturing facility in the U.S. in Phoenix, creating over 600 jobs. •Rehrig Pacific, a manufacturer for the supply chain and environmental waste industries, broke ground on a new manufacturing facility in Buckeye, creating over 100 jobs. •Sion Power, a leading technology developer of batteries for electric vehicles, announced an expansion of its battery manufacturing operations in Tucson, creating over 150 jobs. •Nucor, the largest steel and steel products producer in the U.S., will invest $100 million to expand its existing bar mill in Kingman, creating 140 new jobs. •JX Nippon Mining & Metals USA broke ground on its new electronic materials manufacturing facility in Mesa, creating over 100 jobs once operational in 2024. •Chang Chun Arizona, a leading petrochemical supplier based in Taiwan, broke ground on its $300 million semiconductor chemical manufacturing facility in Casa Grande, creating over 200 new jobs. •Ecobat, the global leader in battery recycling, announced plans to build a lithium-ion battery recycling facility in Casa Grande, creating over 60 new jobs. •Cirba Solutions, a leading battery management and materials processor, announced plans to construct a lithium-ion battery recycling facility in Eloy, creating over 100 jobs. •HyRel Technologies, a global provider of quick-turn semiconductor modification solutions, commenced operations at its $15 million manufacturing facility in Peoria, creating 50 new jobs.
The Many Non-Financial Benefits of Home Ownership
Buying and owning your own home can have a big impact on your life. While there are financial reasons to become a homeowner, it’s essential to think about the non-financial benefits that make a home more than just a place to live.
Here are some of the top non-financial reasons to buy a home.
According to Fannie Mae, 94% of survey respondents say “Having Control Over What You Do with Your Living Space” is a top reason to own.
Your home is truly your own space. If you own a home, unless there are specific homeowner association requirements, you can decorate and change it the way you like. That means you can make small changes or even do big renovations to make your home perfect for you. Your home is uniquely yours and by buying, you give yourself the freedom to tailor it to your individual style. Investopediaexplains:
“One often-cited benefit of homeownership is the knowledge that you own your little corner of the world. You can customize your house, remodel, paint, and decorate without the need to get permission from a landlord.”
When you rent, you might not be able to make your place really feel like it’s yours. And if you do make any modifications, you might have to change them back before you leave. But if you own your home, you can make it just the way you want it. That level of customization can give you a sense of pride in where you live and make you feel more connected to it.
Fannie Mae also finds 90% say “Having a Good Place for Your Family To Raise Your Children” tops their list of why it’s better to buy a home.
Another important factor to think about is what stage of life you’re in. U.S. Newsbreaks it down:
“For those with young children, buying a home and putting down roots is a major driver. . . . You don’t want the upheaval of a massive rent increase or a non-renewed lease to impact your sense of stability.”
No matter which of life’s milestones you’re in, stability and predictability are important. That’s because the one constant in life is that things will change. And, as life changes around you, having a familiar home and not worrying about moving regularly helps you and those who matter most feel more secure and more comfortable.
Lastly, Fannie Mae says 82% list “Feeling Engaged in Your Community” as another key motivator to own.
Owning your home also helps you feel even more connected to your neighborhood. People who own homes usually live in them for an average of nine years, according to the National Association of Realtors (NAR). As that time passes, it’s natural to make friends and build strong ties in the community. As Gary Acosta, CEO and Co-Founder at the National Association of Hispanic Real Estate Professionals (NAHREP), points out:
“Homeowners also tend to be more active in their local communities . . .”
When you care deeply about the people you live near, you’ll do what you can to contribute to your local area.
Bottom Line
Owning your home can make your life better by giving you a sense of accomplishment, pride, stability, and connectedness. If you're thinking about becoming a homeowner and want to learn more, reach out to a local real estate agent today.
As of 9/21/2023 30-year fixed: 7.47% 15-year fixed: 6.75% Mortgage rates have increasedsignificantly since this time last week.
“Some lenders advertise much lower rates than others. Other lenders can be "out of the market" at times. Our index attempts to capture the most prevalently quoted conventional conforming 30-year fixed rate for a loan scenario with at least 20% down and no major loan level price adjustments.”
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Dennis Carr - Realtor, GRI Licensed in AZ and CA 480.825.2870
Thinking of Selling or Buying?
Thank you for reading the Arizona Metro Market Report. I hope this newsletter helps you stay informed about local real estate trends.
The Phoenix real estate market continues to be one of the most attractive locations within the United States. An exodus from Los Angeles and Seattle has helped fuel the growth. In spite of historically high prices in Arizona, the cost of housing continues to be a bargain for many out-of-state buyers. While overall there are more listings for buyers to choose from vs last year, new listings are scarce. As a result, prices have not crashed due to oversupply. Contact me for a more targeted view of a particular location within the Phoenix Metro you are interested in.
If you are considering purchasing in Arizona and would like to discuss the possibility of buying or selling without being pressured, contact meso I can learn more about your timeline and real estate goals. It is important to plan ahead and develop a strategy for success.
