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Phoenix Real Estate Statistics
by Liz Suto
Is it a boom or bubble? No one’s quite sure, but here are some statistics that may help you decide.
The Long Term Picture
Okay, it’s been great to be in real estate lately. But forget the past 2 years for a moment. Phoenix area home values have climbed faster than the national average even in “normal” real estate years. According to information released from the Office of Federal Housing Enterprise Oversight, the Phoenix area has averaged 5.4% appreciation from the period between 1991-2001, which is higher than the national average of 4.3%.
Price Risk Lower in Phoenix than most other Western Cities
Money magazine recently compiled home prices as a multiple of the annual median income (home price divided by yearly income). We know places like New York City and San Francisco have a high median income. But even with a high income, it’s very difficult to afford a home in these areas. The following chart shows a few of the major markets in the west that Money magazine analyzed. Risk is assessed based on the multiple and the forecast housing price increase.
City Multiple Growth Forecast Risk
| Los Angeles |
8.3 |
8.3% |
High |
| San Francisco |
7.9 |
13.6% |
High |
| Seattle |
4.4 |
9.1% |
High |
| Dallas |
2.1 |
N/A |
Low |
| Phoenix |
3.2 |
17.7% |
Low |
| Miami |
5.3 |
15.3% |
Medium |
Job Creation statistics
The latest updated figures from the Bureau of Labor Statistics show that Nevada and Arizona created new jobs faster than all other states in 2004, according to an analysis in the current issue of the Western Blue Chip Economic Outlook.
Nevada's nonfarm employment grew by 5.9 percent last year, while jobs in Arizona were up by 3.4 percent. Employment nationally grew by 1.1 percent, according to Lee McPheters, contributing editor of the Western Blue Chip.
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