Arizona Adds 58,000 Jobs

Arizona ranked 7th among all states in raw job number increases between June 2011 and June 2012 and 5th in terms of percentage gain with a 2.42 percent increase.  In total, 58,000 jobs were added according to research from On Numbers.

Travelers Vote With Their Dollars and Scottsdale Wins!

With hotel capacity near 95 percent, this spring's tourism season in Scottsdale set records.  A single day attendance record was set for the Arabian Horse Show, near record attendance at the Barrett-Jackson auto auction occurred, records for area Cactus League baseball attendance were shattered, and the rowdy crowds at the Waste Management Open enjoyed some of the best weather in years.  There were as many in attendance for the golf tournament on Saturday as most tournaments get in four days. 

Hopefully, this is yet another sign of life in an economy battered by issue after issue over the past five years.  Certainly the Chamber of Commerce weather did not hurt!

For help with the purchase or sale of a property in the Scottsdale/Phoenix market.  Please contact Christopher Cole by visiting DiscoveringScottsdale.com.

Mythbuster: Multitasking

Recent research at the University of California San Francisco has punched a rather large hole into the notion of Multitasking.  According to their research only 2.5% of us can multi-task efficiently while many of us only think we can.  This is how they found out.

By using the cocktail-party effect, they found that we can focus on one conversation at a time due to the auditory cortex boosting some sounds and tuning down others so we can hone in on what we want to hear.  It is the same for our visual cortex. 

Those of us who only think we can multitask are shifting their attention between the tasks rapidly not truly multitasking and not getting the full effect of any of the tasks. 

Does texting and driving come to mind? 

One fun (or not so funny) test of this effect is to have a husband and wife try to have a conversation during a football game.....

It should be noted that this writer does not accept responsibility of the result....

Source material from Wall Street Journal, Elizabeth Bernstein

Phoenix Housing Rising Like a Phoenix

One of the first real estate markets in the nation to fall from its heights is leading the nation back.  After falling 55 percent from its heights in late 2005 thru the end of 2011, Phoenix area home prices are increasing and leading a housing recovery.  The recovery appears to be broad with only the million plus market lagging.  Low prices have been attracting investors for several years now.  Half of Canada owns property here now!  Just kidding.  However, several large investment funds have set up shop over the past several years now that the market has bottomed, more are showing up every day.  They are going to have a hard time though because inventory has collapsed and multiple offers are occurring for most well priced properties under $500,000.  Forget trying to find something under $100,000.....individual investors are playing along with the investment groups in this price range and they are being snatched up as quickly as they hit the market.  Prices at the courthouse steps are being bid up to retail or better and the fix and flip crowd has been squeezed out for the most part. 

No one here sees this ending anytime real soon barring another major financial crisis, but even then, the word has gotten out on both affordability and rental returns and until this dynamic changes, the froth will continue.

Owning a Home is Gaining in Appeal as Rents Head Higher

The Wall Street Journal recently had an article indicating that rent increases are making home ownership more appealing day by day.  In 2011 alone, the number of investor owned homes increased by 65 percent during 2011 and represented 27 percent of all sales.  This number is certanily higher in investor markets like Phoenix.  With returns on more traditional investments very low compared to risks associated with them, more and more people are turning to the rental market as a way to develope a nest egg.  With returns of 6-12 percent and the good possibility of future price increases, it makes a lot of sense to this. 

However, if one compares rents to house payments in many markets, ownership makes more sense as affordability reaches heights not seen in decades.  Apparently, many are making this assessment and are pouring back into the market helping tamp down inventory to even lower levels.