Phoenix Housing Market Update for January

In January we were once again treated to a variety of headlines in the local press concerning our Phoenix housing market.

Chief among these was from a week ago where it was reported that the new-home market was staying on a "fast track". Noted local housing analyist, RL Brown, said that population growth, increasing number of jobs, relative affordability, moderate mortgage interest rates, available land, warm weather and retirement buyers all were positive influences that fueled the local housing market.

About the same time as Mr. Brown's predictions was an article indicating that, statewide, Arizona added 97,500 positions in 2005, the largest boost in the past 10 years. This places Arizona among the top states in the country for job growth.

Did you notice the article on the insurance company that is adding 1100 jobs at its headquarters here?

About the only thing that could seriously threaten the housing market here is a strong rise in interest rates. The Fed just raised their interest rate another 1/4 point yesterday but that is predicted to be the last increase for a while now that Alan Greenspan is stepping down as head of the Federal Reserve.

So far, so good for 2006. I'll keep you posted.

Richard