The Arizona economy continues its long winning streak. Employment is expanding, population growth is solid, and wages are rising. Further, Arizona continues to far outpace national growth rates.
The outlook for 2019 remains solid for the state and nation. The current national expansion is very much on track to be the longest on record.
Arizona added 78,800 jobs in 2018, which translated into 2.8% growth, according to the latest revised data from the U.S. Bureau of Labor Statistics. As Exhibit 1 shows, that was up from 2.5% in 2017. Employment gains also accelerated in the Phoenix Metropolitan Statistical Area (MSA), rising from 3.0% in 2017 to 3.3% in 2018. In contrast, job growth decelerated in the Tucson MSA, from 1.3% in 2017 to 1.2% last year. Nationally, job growth was 1.6% in 2017 and 1.7% in 2018.
It is a great time to invest in Arizona!
Two years ago would be a much better time to get into the Arizona market when thousands of multi-unit properties were selling for $40,000 to $50,000 per unit. Today, those exact same units are going for $150,000+.
If you see some good deals in Arizona let me know and I will give you a slice of the pie. I prefer multi-units unless you can get single families for a steal.
@Account Closed The market has consistently grown the last 5 years YOY for increases in both Sales Prices and Rent Prices. I meet with several Economists monthly who all predict the growth for AZ in the Greater Phoenix Area including the Southeast Valley for the next 5 years conservatively speaking. With lower barriers to entry and future expansion with business, AZ will be a prime market for RE Investors. Intel announced 7 BILL investment in AZ and Google is building a 1 BILL data center in Mesa, AZ. Costs are still higher than 2 years ago, but on average homes usually double in value 20-30 years later. I am a strong believer in buy and hold income properties.
Also it is important to note that AZ does not have any natural disasters such as earthquakes, mudslides of forest fires. AZ is pro business and a third of the taxes compared to CA.
Conforming loans are up to $484,350 and anything over that amount is a Jumbo Loan. My lender offers 3% down which is even better than FHA at 3.5%. Jumbo loans are at 4% or under now depending on credit with only 10% down and no PMI.
Please let me know if you have any questions on Arizona Real Estate!
Arizona has no forest fires?!
Whom is this lender you speak of with the magical 3% down? Is this for investors or just first-time homeowners?
@Scott Anderson let me rephrase on the disproportionate dollar amount of damages as it relates to forest fires...
CA Wildfires caused $12.4 BILL in insured losses in the last year alone per Mercury News. Most forest fires in AZ do not cause that type of damage to homeowners.
@Todd Foster I just sent it to you directly. 3% down is the luxury loan product he offers for his highest end clients +740 Credit Scores. This would be for a primary residence and does not have to be a first time homeowner.
Interest rates are low now, but the Fed will be increasing rates in the intermediate future. If there is a deal to be had, now is the time to leverage your money with attractive interest rates. You can go up to 10 properties before you need to go to a portfolio lender. My advice is to build the relationship now if you have not done so already.
Hope this helps!