Hello, There was an article in the  Business Journal of Phoenix last week that provided some information from the Arizona Blue Chip Economic Forecast.  Once again, some of what we have been saying for a while is backed up with this report.  Although there are definitely factors that will continue to put a drag on the economy, such as the slow housing market and mortgage concerns, there are many other factors that will help buoy our market through those negatives better than most other metro areas.  Population continues to grow, and that bodes well for the long run real estate market.  Once again, that will also mean an easier rebound for the negative factors.  The following is text of the article:

 

Economic panel cites population growth, nonresidential construction among local drivers

The Business Journal of Phoenix - August 15, 2007 

Population growth, declining or stable fuel prices, nonresidential construction, modest interest rates, the national economy, and global growth are expected to be the key positive influences on local economy over the next 12 months.

That's the view of economists who take part in the Arizona Blue Chip Economic Forecast. The top negative influences likely will come from the slowing residential housing market, consumer spending, slowing economic growth, and problems with the subprime lending market and rising mortgage rates, the group said.

 

"It is no surprise that the slowing residential construction market garnered the most mentions as a negative factor for the local economy," wrote Forecast editor Tracy Clark.

 

But the news is not all bad with population growth critical to limiting the impact of the residential slowdown, Clark said. "It is clear that population growth is off the peak but is still remarkably strong by national standards."

 

The Forecast panel predicts Arizona 's population to grow by 3 percent in 2007 to 6.31 million, and by another 3 percent in 2008.

 

The Arizona Blue Chip Economic Forecast is published by the JPMorgan Chase Economic Outlook Center, L. William Seidman Research Institute at the W.P. Carey School of Business at Arizona State University .

If you are  one of the new people to the area and you are considering purchasing a home, please contact us for a personal, free, no obligation appointment to assist you in finding the perfect home for you!

Adam Tarr, ABR, e-Pro
Sharon Kotula, ABR
RE/MAX Excalibur
Scottsdale, AZ
480-483-3333
info@WeAreAZRealEstate.com

http://www.weareazrealestate.com/