How Does the Economy and Job Outlook of Arizona Affect Real Estate?

Phoenix and Scottsdale are two of the largest cities in Arizona. To a great extent, their economies affect the overall status of Arizona. The entire real estate scene throughout the state is directly affected by these two top-performing cities. Therefore, if you truly want to keep an eye on Scottsdale real estate and Phoenix, AZ real estate, then you have to analyze the state’s economy as a whole.

Recently, the Research Administration of the Arizona Department of Commerce stated that they project a gain in employment for the state of Arizona in the year 2011. This is significant, because this strongly indicates recovery from a recessionary period. Reportedly, Arizona will continue to see a decrease in 2010, but will add 23,100 jobs in 2011, giving it an increase of 1%. Naturally, many Phoenix and Scottsdale households have been affected by layoffs.

These trends directly influence the prices of Scottsdale homes for sale. They also influence the rate of foreclosure, which by the way, has been at a record setting high within the last two years. Arizona has received some assistance from the Arizona Department of Housing, which is now working with the federal government to aid some 4,000 households that were in the “hardest hit categories” of recession-related layoffs. There has also been a lot of promise in recent months when it comes to business real estate transactions. For example, Mercado del Rancho sold to an outside buyer, while Sereno Canyon opened up many new prospective sites for investors.

We’ve also seen three new restaurants from City Scape, including La Crepe Nanou, Brew Public Craft House and Huey’s Diner. The more business thrives, the more the residential areas grow. There is also something to be said about the exciting Casino Arizona at Talking Stick, a multi-million dollar casino and resort location which opened in April.

While the Phoenix and Scottsdale foreclosure rate is at an all time high, sometimes this can be a mixed blessing. Scottsdale bank owned homes and foreclosure properties are selling just the same, and keeping AZ real estate on the map. So keep an eye on Arizona in 2010.  2011 is promising to be a year of growth.