Phoenix Housing Market Shows Promise for 2015Posted 12/09/2014
The next year is already beginning to show promise for the Phoenix housing market. According to Realtor.com, the metro Phoenix area is one of the United States’ “10 hottest housing markets to watch in 2015.” The real estate website's chief economist, Jonathan Smoke, credits Phoenix's potential for income growth and new-home construction for landing the city on his Top 10 list.
Though hit hard by the recession, Phoenix has consistently been a top performer in population growth and new-home construction. In fact, Smoke notes the market is among the top five in the nation for new construction and is expected to see a 7 percent spike in household formations over the next five years.
Brighter days seem to be just around the corner for the national housing industry, as well. According to the U.S. Economic and Housing Market Outlook report, home purchases throughout the country will continue to strengthen along with the broader economy. “The good news for 2015 is that the U.S. economy appears well poised to sustain about a 3 percent growth rate in 2015 — only the second year in the past decade with growth at that pace or better,” said Frank Nothaft, Freddie Mac vice president and chief economist.
In short, Nothaft believes lower energy costs will support consumer spending and business investment, easing of credit conditions and higher consumer confidence, thus increasing economic growth. As a result, the economy will produce more jobs that pay better, which will lead to household formations and housing activity.
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