Arizona foreclosure inventory is less than one percent of the active listings today. Home prices are still lower than the high of 2008, leaving 21.5 percent of Arizona mortgages in negative equity, but only two percent of these mortgages are 90 days past due.
On average, 12,575 homes sell in the United States every day. In the last six months, a total of 356 homes were sold in Flagstaff. In April of this year, our local median home value passed the $300,000 threshold and continues to hold steady.
Housing sales contribute to our local economies in more ways than the obvious trades like construction, realtors, appraisers, lenders, inspectors, title companies and moving companies. Other trades such as furniture sales, appliance sales, restaurants, athletic clubs, car sales, charity events and more are affected. A National Association of Realtors study reported that in 2012, the impact of every home sold in Arizona was 18.8 percent of the gross state product and each sale puts $45,000 into the local economy.
Pulte Homes ran a poll in May 2014 that asked, “Has your interest in purchasing a home increased over the last year?” Fifty-nine percent of Millennials said YES and 45 percent of move-up buyers said YES. Second home buying was up 29.7 percent last year, with most buyers planning to use the home as a vacation home now, and later as a retirement home.
Real estate is the last leveraged investment for many forward planning buyers. In April 2014, a Gallup Poll proved once again the best long-term investment is real estate by 30 percent, next at 24 percent are gold, stocks and mutual funds. The study was broken down into different age groups, and in every age group, real estate is believed to be the best long-term investment. When they based the results on income levels, the gap widened even more for people earning $75,000 or more, with 38 percent believing real estate was the best investment.
If you look at the actual returns on investment since January 2000 as compared to other investments, the results show:
- Dow – 51.3 percent
- S&P – 31.9 percent
- NASDAQ – 4.3 percent
- Housing – 65.4 percent
July being our month for celebration of independence, I wish for us all to reflect back on the difficult housing crisis with a healthy respect for what is important in our lives. Shelter is a vital necessity for the health and happiness of ourselves and our loved ones. The American dream is alive and well in the people of this country, and hard work and perseverance is the American way. FBN
By Georgina Dalton, PLLC
Russ Lyon Sotheby’s