Improving job market is side-by-side with housing
Between 2007 and 2009, the Phoenix job market dropped from the top spot to No. 84. This dramatic decrease caused trouble in the housing market as well, as some residents were forced to sell or foreclose on their homes. Today, real estate in Phoenix is finally on its way back up, which may be partially due to the metropolitan area's improving job market.
According to AZ Family, Arizona’s job market is ranked 7th in job growth behind California, New York, Texas, Florida, Ohio and New Jersey. In the last year, 58,000 non-farming jobs were created, providing hope to struggling citizens. Although there are still some residents trying to stay afloat, a recent job fair is aiding the recovery.
"It's been really tough, just this last week my house was foreclosed on so while I'm here at the job fair today, I'm also in the process of getting everything packed up and moved," Phoenix local Donna McKinney, who's been out of work for several years, told AZ Family. McKinney was laid off at the pharmaceutical company she worked at and is now employed at Target.
Dennis Hoffman, Professor of Economics at ASU, said although many jobs being added now are part-time, temporary or contract based, the outlook will continue to improve for Arizona residents. Real estate expert Tom Rex said that since the recession, metro-Phoenix has gained back 25 percent of lost jobs.
Economic reports noted that small-business employment and hiring have been up in the past month in Arizona. SurePayroll’s latest Small Business Scorecard reported a 0.3 percent increase in small business hiring in the Phoenix area. Intuit Online Payroll, a software company that makes TurboTax and Quicken software, reported a 0.3 percent increase in compensation in July.
According to the Indy Channel, although home prices are rising in some parts of the country, a real recovery isn’t expected until next spring. A full recovery is expected by 2015. Maricopa County recently announced the current property tax rate will remain stagnant, but as property values have decreased, homeowners will see a drop by nearly $20.
Bloomberg reported Phoenix is expected to lead the nation with increased home values by 9.9 percent within the next year. Although many homes are still being foreclosed on, experts believe the increased demand will absorb those types of homes, as the inventory remains low.