Metro Phoenix Economic Snapshot presented by Marie Heilman

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P H O E N I X

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The Real Estate Market

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What’s Expected in 2011?

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Mortgage Interest Rates

A Look Back at the Good, the Bad and the Ugly

E’VE BEEN DOUBLE-DIPPED

2010 Sales Statistics

etro Phoenix home prices bottomed out in April of 2009 with a median sales price of $115,000 – this after a peak of $265,000 timeI of 2009, home prices R E during S I DtheEboom NT AJune L 2006.

R EAfter AApril L E S TAT Ebegan scooting back up and the median hovered at $130,000 un t summer when the federal homebuyer tax credit expired. By December of 2010, the median home price fell to a new low of $110,000, creating a dreaded “double-dip” in a fragile market that

NUMBER OF housing MEDIAN s been precariously attempting to rebound. (The median figures reported are for all types of housing sold,We’ve including condominiums, patio homes and townhomes. median values for SALES single-family Been Double-Dipped The SOLD LISTINGS PRICE Metro Phoenix home prices bottomed in April ofprice 2009 with median sales operties are higher when calculated separately.) The Arizona Regional Multiple Listing Service’s data forecasts the Valley’s medianouthome toaclimb back up to January $115,000 in January.

While$123,000 2010’s hom 5,667 price of $115,000 – this after a peak of $265,000 during the boom time of June February 6,422 $125,000 es pattern can be described as “one step forward and two steps back,” the prediction for 2011 is improving toAfter “two forward and oneback step back.”

2006.

April steps 2009, home prices began scooting up and the median March 8,805 $128,700 hovered at $130,000 until last summer when the federal homebuyer tax credit April 9,136 $128,275 ind expired.

By December of 2010, the median home price fell to a new low of hile price declines are painful, the good news is that demand has remained strong through 2010 (see chart: 2010 Sales Statistics). The cure for low prices is low prices. Indeed, the home affordability $110,000, creating a dreaded “double-dip” in a fragile housing market that has May 8,924 $130,000 ll help to bring in more and more buyers and move out the excess inventory. been precariously attempting to rebound. (The median figures reported are for June 9,158 $127,630

all types of housing sold, including condominiums, patio homes and townhomes.

July 6,913 $125,000 median values for price single-family properties higher whento calculated hat does this mean for the future of our housing market? Pricing is expected to slide a bit further this year.TheAny further decline is are expected be mod- Information Market says, “The new loans coming into the pool have made it est though, as the heart-stopping drops of rece August 7,000 $119,287 through strict underwriting protocol while the bad loans just keep getting sent to separately.) The Arizona Regional Multiple Listing Service’s data forecasts the ars past are behind us now. Despite the drop in pricing, the strong volume of sales in 2010 shows us whatValley’s our market should do in the future.

Pricing is a lagging indicator, but the supply and demand levels generally indicate what prices will do.

So with con September 6,715 $119,900 median home price to climb back up to $115,000 in January. While 2010’s the courthouse steps, and once they’re foreclosed, they’re no longer delinquent.

October 6,556 $120,000 Good in, bad out.” home-sales pattern can be described as “one step forward and two steps back,” ued demand in 2011, any mild price decreases we experience should then begin to rise from there. the prediction for 2011 is improving to “two steps forward and one step back.”

November 6,740 $115,000 While price declines are painful, the good news is that demand has remained December 8,405 $110,000 We must remember that price declines do not forecast a bad market ahead, they are an indicator of a bad market in the But theseTheprice stimulate demand isrecord a necessary part of30-Year the recovery process,” reports The Cromford Report, a l Mortgage interest rateswhich plunged to lows in 2010 (see table: Fixedstrong through 2010recent (see chart:past.

2010 Sales Statistics). cure fordeclines low prices is low

Total: 90,441 Average: $123,900 Rate Mortgages Annual Average), with a 30-year fixed-rate low of 4.16%.

But with prices. Indeed, the home affordability index will help to bring in more and more real estate research firm.

Source: ARMLS the economy showing signs of life, rates have begun rising in early 2011 to nearly buyers and move out the excess inventory.

5%. By the time the housing market recovery is under way later this year and What does this mean for the future of our housing market? Pricing is STRESSED PROPERTIES EASING UP into 2012, we can expect to see rates continue their upward trend. Lawrence Yun, expected to slide a bit further this year. Any further price decline is expected to National Association of Realtors chief economist forecasts rates to average over Originally owned by baseball great Joe Garagiola, this exceptional be modest though, as the heart-stopping drops of recent years past are behind us in 2011 and 5.8% in 2012 – a nearly 2% increase from last year’s low. now.

Despite the drop in pricing, the strong volume of sales in 2010 shows us what hile still at elevated levels and putting pressure onprestigious home values, thegated amount of foreclosures within our local market is expected to drop, though perhaps not in5%the first few months of 2011 while banks work through the backlog created last year with their tw estate in the Finisterre community offers a For potential homebuyers wrestling with the decision on the best time to buy, our market should do in the future. Pricing is a lagging indicator, but the supply onth moratorium on foreclosures.

YEAR RATE YEAR RATE it appears to be NOW. For even if home prices experience another 5% to 10% and demand levels generally indicate what prices will do. So with continued triple-play of timeless architecture, open space and stately elegance. demand in 2011, any mild price decreases we experience should then begin to rise decline, the cost-of-money to borrow at higher rates the longer you wait may just 1972 7.38 % 1992 8.39 % Having been totally remodeled, this home boasting of 8500 sq. ft. offset any monthly savings you might see. For every point that interest rates go up there.in pre-foreclosures from 97,141 in 2009 to 79,637 1973 in December 8.04 % 1993 is the7.31 % reclosure activity peaked in 2010 (see Chart: Monthly Foreclosure Activity in Maricopa County). But thefrom drop in 2010 is a positive sign. In fact, the total of 5,475 notices 2010 lowest lev on an 80% loan, the effective price of the home goes up about 10% due to what the

“We must remember that price declines do not forecast a bad market ahead, 1974 9.19 % 1994 8.38 % living space, bedrooms and five baths, is perfect for ce March of 2008. While we still have ofseveral morefive years of distressed property inventory to eat up (it’s they estimated that 22.5%-38.9% of homeowners are underwater on their mortgage), the homes purchased today are subject to much more rigorous lending difference in payments would amortize.

1975 9.05 % 1995 7.93 % are an indicator of a bad market in the recent past. But these price declines For sellers, put your homegetting on the market untilto prices may 8.87they’re % 1996 7.81 % entertaining. Nestled on says, an acre+ lot, the spectacular backyardinto the pool have stimulate demand which is a necessary of the recovery process, ” reports while the ndards. As Tom Ruff, an analyst with Information Market “The new loans coming made it through strict part underwriting protocol bad waiting loanstojust keep sent therisecourthouse steps,1976 and once foreclosed, they’re no also offset any gain you’d have. Your pool of potential buyers will be different.

1977 8.85 % 1997 7.60 % The Cromford Report, a local real estate research firm. nger delinquent. Good in, bad out.” with desirable south/ east exposure includes a newly remodeled, 1978 9.64 % 1998 6.94 % Many won’t qualify at the higher rates when they would have qualified today.

1979 11.20 % 1999 7.44 % Additionally, If you’ll be repurchasing then you’ll too be financing at the higher resort-style swimming pool, a seven-hole putting green and two 1980 13.74 % 2000 8.05 % rates we will have.

While still at elevated levels and putting pressure on home values, the amount of pitching mounds. In addition to complete privacy and the best of 1981 16.63 % 2001 6.97 % foreclosures within our local market is expected to drop, though perhaps not in the HE INTEREST RATE DANCE 1982 16.04 % 2002 6.54 % first few months of 2011 while banks work through the backlog created last year outdoor living, enjoy 2000 sq. ft. of covered patio with a Viking 1983 13.24 % 2003 5.83 % Whether it’s a clearance sale on a high-quality pair of shoes, or an investor with their two-month moratorium on foreclosures.

1984 13.88 % 2004 “buying low to sell high, ” savvy shoppers know to capitalize on an opportunity to

Foreclosure activity peaked in 2010 (see chart: Monthly Foreclosure Activity in BBQ, industrial misting system and new stone flooring.

Separate ortgage interest rates plunged to record lows in 2010 (see table: 30-Year Fixed Rate Mortgages Annual Average), with a 30-year fixed-rate low of 4.16%. But with the economy showing signs of life, rates have begun rising in early 2011 to nearly 5.84 5%.% By the 1985 12.43 % 2005 5.87 % Maricopa County). But the drop in pre-foreclosures from 97,141 in 2009 to 79,637 buy a valued item at a huge discount. And while Arizona real estate is priced very me the housing market recovery is underguest wayhouse laterhasthis yearexercise and into 2012, we can expect to see rates continue their upward trend. Lawrence Yun, National Association of Realtors chief economist forecasts rates to average 5% and 5.8% in 2012 its own room.

New paved circular driveway 1986 over 10.19 % in 20112006 6.41 % low right now, the most important factor indicative of a good investment is the in 2010 is a positive sign. In fact, the total of 5,475 notices in December 2010 is 1987 10.21 % 2007 6.34 % early 2% increase from last year’s low.with spectacular fountain and regal palm trees greet guests in style. potential value and worth. If you subscribe to the belief that Arizona is a highly the lowest level since March of 2008. While we still have several more years of 1988 10.34 % 2008 6.03 % desirable destination and will be in much demand in the decades to come, than distressed property inventory to eat up (it’s estimated that 22.5%-38.9% of 1989 10.32 % 2009 5.04 % Electronic private gate, security system and state-of-the-art Creston buying property in today’s market may be the wisest move you can make for your are underwater on their mortgage), the homes purchased today are r potential homebuyers wrestling with the decision on homeowners the best time to buy, it appears to be NOW. For even if home prices experience another 5% to 10% decline, the cost-of-money to borrow at higher 1990 10.13 % 2010 4.69 % rates future wealth portfolio. subject to much more rigorous lending standards. As Tom Ruff, an analyst with

longer yments

r sellve

The Interest Rate Dance

PRISTINE & PRESTIGIOUS I N PA R A D I S E VA L L E Y

30-Year Fixed-Rate Mortgages Annual Average

Distressed Properties Easing Up

Arizona On Sale

smart homemay system bring the latest 1991 10% 9.25due % to what Source: Freddie Mac you wait just offset any in monthly savings you might see. For every point that interest rates go up on an 80% loan, the effective price of the home goes up about the difference in technology to this venerable estate. You would amortize. can’t beat this fabulous location in Paradise

Source: Information Market Source: Freddie Mac Monthly Foreclosure Activity In Maricopa County ers, waiting to putfrom your home on the market until prices rise may also offset any gain you’d have. Your pool of potential buyers will be different. Many won’t qualify at the higher rates when they wo Valley: just moments Downtown

qualified today. Additionally, If you’ll be repurchasing then you’ll too be financing at the higher rates we will have.RESIDENTIAL NOTICE RESIDENTIAL Source: Information Market MONTH MONTH RESIDENTIAL NOTICE RESIDENTIAL

OF TRUSTEES SALE FORECLOSED

OF TRUSTEES SALE FORECLOSED cultural and upscale spas and resorts.

RIZONA ONevents SALE December 5,475 3,283 December 7,405 4,792 This is where you dream of being!

November 5,607 2,509 November 6,679 3,485 October 6,728 4,034 October 7,303 4,444 hether it’s a clearance sale on a high-quality pair of shoes, or an investor “buying low to sell high,” savvy shoppers know to capitalize on an opportunity to buy a valued item at a huge discount.

And while September 7,116 4,877 destination September izona real estate is priced very low right now, the most important factor indicative of a good investment is the potential value and worth. If you subscribe to the belief that Arizona is a highly desirable and will be in7,408 much demand in3,432 the decades t August 7,186 4,831 August 8,624 3,546 me, than buying property in today’s market may be the wisest move you can make for your future wealth portfolio.

July 7,804 4,651 July 8,671 4,711 June 5,833 4,584 June 8,138 4,688 May 6,106 3,841 May 8,126 3,472 April 6,634 4,115 April 8,552 3,787 March 7,625 5,127 March 10,077 3,023 February 7,179 3,891 February 8,000 4,780 January 6,344 4,065 January 8,158 3,832 Total: 79,637 49,808 Total: 97,141 47,992

2009

2010

Scottsdale, boutique shopping, fine dining,

E’VE BEEN DOUBLE-DIPPED

2010 Sales Statistics

etro Phoenix home prices bottomed out in April of 2009 with a median sales price of $115,000 – this after a peak of $265,000 timeI of 2009, home prices R E during S I DtheEboom NT AJune L 2006.

R EAfter A April L E S TAT Ebegan scooting back up and the median hovered at $130,000 un t summer when the federal homebuyer tax credit expired. By December of 2010, the median home price fell to a new low of $110,000, creating a dreaded “double-dip” in a fragile market that

NUMBER OF housing MEDIAN s been precariously attempting to rebound. (The median figures reported are for all types of housing sold,We’ve including condominiums, patio homes and townhomes. median values for SALES single-family Been Double-Dipped The SOLD LISTINGS PRICE Metro Phoenix home prices bottomed outhome in April ofprice 2009 with median sales operties are higher when calculated separately.) The Arizona Regional Multiple Listing Service’s data forecasts the Valley’s median toa climb back up to January $115,000 in January.

While$123,000 2010’s hom 5,667 price of $115,000 – this after a peak of $265,000 during the boom time of June February 6,422 $125,000 es pattern can be described as “one step forward and two steps back,” the prediction for 2011 is improving “two forward and oneback step back.”

2006.to After April steps 2009, home prices began scooting up and the median March 8,805 $128,700 hovered at $130,000 until last summer when the federal homebuyer tax credit April 9,136 $128,275 ind expired.

By December of 2010, the median home price fell to a new low of hile price declines are painful, the good news is that demand has remained strong through 2010 (see chart: 2010 Sales Statistics). The cure for low prices is low prices. Indeed, the home affordability $110,000, creating a dreaded “double-dip” in a fragile housing market that has May 8,924 $130,000 ll help to bring in more and more buyers and move out the excess inventory. been precariously attempting to rebound. (The median figures reported are for June 9,158 $127,630

all types of housing sold, including condominiums, patio homes and townhomes.

July 6,913 $125,000 Information Market says, “The new loans coming into the pool have made it medianfurther values for single-family properties higher when to calculated

hat does this mean for the future of our housing market? Pricing is expected to slide a bit further this year.TheAny price decline isareexpected be modest though, as the heart-stopping drops of rece August 7,000 $119,287 through strict underwriting protocol while the bad loans just keep getting sent to separately.) The Arizona Regional Multiple Listing Service’s data forecasts the ars past are behind us now. Despite the drop in pricing, the strong volume of sales in 2010 shows us whatValley’s our median market should do in the future.

Pricing is a lagging indicator, but the supply and demand levels generally indicate what prices will do.

So with con September 6,715 $119,900 home price to climb back up to $115,000 in January. While 2010’s the courthouse steps, and once they’re foreclosed, they’re no longer delinquent.

October 6,556 $120,000 Good in, bad out.” home-sales pattern can be described as “one step forward and two steps back,” ued demand in 2011, any mild price decreases we experience should then begin to rise from there. the prediction for 2011 is improving to “two steps forward and one step back.”

November 6,740 $115,000 While price declines are painful, the good news is that demand has remained December 8,405 $110,000 We must remember that price declines do not forecast a bad market ahead, they are an indicator of a bad market in the But theseTheprice stimulate demand isrecord a necessary part the Fixedrecovery process,” reports The Cromford Report, Mortgage interest rateswhich plunged to lows in 2010 (see table:of30-Year strong through 2010 recent (see chart: past.

2010 Sales Statistics). cure fordeclines low prices is low

Total: 90,441 Average: $123,900 Rate Mortgages Annual Average), with a 30-year fixed-rate low of 4.16%.

But with prices. Indeed, the home affordability index will help to bring in more and more ocal real estate research firm.

Source: ARMLS the economy showing signs of life, rates have begun rising in early 2011 to nearly buyers and move out the excess inventory.

5%. By the time the housing market recovery is under way later this year and What does this mean for the future of our housing market? Pricing is STRESSED PROPERTIES EASING UP into 2012, we can expect to see rates continue their upward trend. Lawrence Yun, expected to slide a bit further this year. Any further price decline is expected to National Association of Realtors chief economist forecasts rates to average over be modest though, as the heart-stopping drops of recent years past are behind us — John Lennon & Paul McCartney, Sgt. Pepper’s Lonely Hearts Club Band in 2011 and 5.8% in 2012 – a nearly 2% increase from last year’s low. now.

Despite the drop in pricing, the strong volume of sales in 2010 shows us what hile still at elevated levels and putting pressure on home values, the amount of foreclosures within our local market is expected to drop, though perhaps not in5%the first few months of 2011 while banks work through the backlog created last year with their tw For potential homebuyers wrestling with the decision on the best time to buy, our market should do in the future. Pricing is a lagging indicator, but the supply onth moratorium ontheforeclosures.

YEAR RATE YEAR RATE it appears to be NOW. For even if home prices experience another 5% to 10% and demand levels generally indicate what prices will do. So with continued the rate of spending during the 2010 holiday season was the highest As we’ve turned corner on a New Year, most of us have our demand in 2011, any mild price decreases we experience should then begin to rise decline, the cost-of-money to borrow at higher rates the longer you wait may just 1972 7.38 % 1992 8.39 % since 2005 – that banner year for the economy. sights set on the economy. Just what can we expect in 2011? offset any monthly savings you might see. For every point that interest rates go up there.in pre-foreclosures from 97,141 in 2009 to 79,637 1973 in December 8.04 % 1993 is the7.31 % With consumer spending elevated, manufacturing will seeCounty). an Continued recession?

A robust perhaps something

reclosure activity peaked inrecovery?

2010 Or, (see Chart: Monthly Foreclosure Activity in Maricopa But thefrom drop in 2010 is a positive sign. In fact, the total of 5,475 notices 2010 lowest lev on an 80% loan, the effective price of the home goes up about 10% due to what the “We must remember that price declines do not forecast a bad market ahead, 1974 9.19 % 1994 8.38 % uptick as retailers will need to restock shelves. Business spending in the middle. Indications seem to point to a better economic ce March of 2008.

While we still have several more years of distressed property inventory to eat up (it’s estimated that 22.5%-38.9% of homeowners are underwater on their mortgage), the homes purchased today are subject to much more rigorous lending difference in payments would amortize.

1975 9.05 % 1995 7.93 % they are an indicator of a bad market in the recent past. But these price declines is expected to further increase in 2011 and into 2012 as well. environment for 2011. Indeed, the economy is improving; albeit the For sellers, put your home getting on the market untilto prices risecourthouse may 8.87they’re % 1996 7.81they’re % stimulate demand which is a necessary of the recovery process, ” reports while

ndards. more As Tom Ruff, anus analyst with for Information says, new loans gains coming the pool have made it through strict part underwriting protocol bad waiting loanstojust keep sent the steps,1976 and once foreclosed, n The stock market“The made some encouraging in 2010.into

slowly than most of Americans anxious progress would Market also offset any gain you’d have. Your pool of potential buyers will be different.

1977 8.85 % 1997 7.60 % The Cromford Report, a local real estate research firm.

The DJIA closed out the year with a respectable 11% growth.

prefer.

Overall, 2010 was better than 2009.

2011 is expected to

nger delinquent. Good in, bad out.”

1978 9.64 % 1998 6.94 % Many won’t qualify at the higher rates when they would have qualified today.

Kiplinger.com forecasts the Dow to rise another 1000 points to be better than 2010. And 2012 even better yet, than this year.

1979 11.20 % 1999 7.44 % Additionally, If you’ll be repurchasing then you’ll too be financing at the higher top 12,500 in 2011 with the rally likely to continue into 2012.

The good news is that further economic declines are not expected 1980 13.74 % 2000 8.05 % rates we will have.

While still at elevated levels and putting pressure on home values, the amount of Certainly our humble recovery hasn’t indicated that all of this year. The bad news is that our recovery appears to be weak 1981 16.63 % 2001 6.97 % foreclosures within our local market is expected to drop, though perhaps not in the our troubles are behind us. The two major snags to a robust and protracted.

HE INTEREST RATE DANCE 1982 16.04 % 2002 6.54 % first few months of 2011 while banks work through the backlog created last year recovery continue to be the nation’s weak housing market and Making headlines in the mid-to-latter part of 2010, the 1983 13.24 % 2003 5.83 %

Whether it’s a clearance sale on a high-quality pair of shoes, or an investor with their two-month moratorium on foreclosures. disappointing unemployment. Employers added over 1 million announcement that “THE RECESSION IS OVER” had been met 1984 13.88 % 2004 “buying low to sell high, ” savvy shoppers know to capitalize on an opportunity to

Foreclosure activity peaked in 2010 (see chart: Monthly Foreclosure Activity in ortgage interest rates to record lows in 2010 workers (see table: Fixed Rate Mortgages Annual Average), with a 30-year fixed-rate low of 4.16%. But with the economy showing signs of life, rates have begun rising in early 2011 to nearly 5.84 5%.% By the to payrolls30-Year in 2010 according to figures from the Labor with scoffs and sneers.plunged “If that’s the case, it sure hasn’t been feeling 1985 12.43 % 2005 5.87 % buy a valued item at a huge discount. And while Arizona real estate is priced very Maricopa County).

But the drop in pre-foreclosures from 97,141 in 2009 to 79,637 Department.

But the gains2012, haven’t been to significantly like it,” many groaned. While economists what exactly me the housing market recovery is disagree underonway later this year and into weenough can expect to see rates continue their upward trend. Lawrence Yun, National Association of Realtors chief economist forecasts rates to average 5% and 5.8% in 2012 1986 over 10.19 % in 20112006 6.41 % low right now, the most important factor indicative of a good investment is the in 2010 is a positive sign. In fact, the total of 5,475 notices in December 2010 is reduce unemployment.

While forecasters expect employers to

defines a recession, we all know it’s when the economy fails to

1987 10.21 % 2007 6.34 % nearly 2% increase from last year’s low. potential value and worth. If you subscribe to the belief that Arizona is a highly the lowest level since March of 2008. While we still have several more years of add another 2.5 million workers this year, it’ll be several years grow, or contracts.

1988 10.34 % 2008 6.03 % desirable destination and will be in much demand in the decades to come, than distressed property inventory to eat up (it’s estimated that 22.5%-38.9% of before all of the 8.4 million jobs that have been lost will be While final numbers for the fourth quarter aren’t in yet, 1989 10.32 % 2009 5.04 % buying property in today’s market may be the wisest move you can make for your homeowners are underwater on their mortgage), the homes purchased today are r potential homebuyers wrestling therate decision on the best time to buy, it appears to be NOW. For even if home prices experience another 5% to 10% decline, the cost-of-money to borrow at higher rates the longer you wait may just offset any monthly recaptured. indications are that 2010 will have finishedwith with a 2%+ of 1990 10.13 % 2010 4.69 % future wealth portfolio. subject to much more rigorous lending standards. As Tom Ruff, an analyst with growth.

Generally recoveries from recessions have been closer to 1991 9.25 % Source: Freddie Mac vings you might see. For every point that interest rates go up on an 80% loan, the effective price of the home goes up about 10% due to what the difference in payments would amortize. the 4% or 5% range in GDP growth, but this modest 2% growth is growth nonetheless. A clear signal that the recession truly is over.

Arizona, and the Metro Phoenix market specifically, have been r sellers, The waiting to put your home on thetomarket prices maymarkets alsoinoffset any gain you’d have. Your pool of potential buyers will be different. Many won’t qualify at the higher rates when they would have qualified today. Additionally, If you’ll nation’s Gross Domestic Product was expected grow at until hit worse thanrise most other the US. Our housing market Source: Information Market be Source: Freddie Mac a rate of 2.0% to 2.5% over the next two years.

Now, with the

has fallen harder, population growth has spiraled to historic lows, purchasing then you’ll too be financing at the higher rates we will have. extension of the tax cuts that passed at the end of 2010, and in 2009 Arizona (generally always in the top five growth states) Source: Information Market MONTH RESIDENTIAL NOTICE RESIDENTIAL MONTH RESIDENTIAL NOTICE RESIDENTIAL forecasters are predicting heightened growth. Mark Zandi, sank to 49th out of 50 states when measuring employment growth.

RIZONAa well-known ON SALE

OF TRUSTEES SALE FORECLOSED

OF TRUSTEES SALE FORECLOSED economic forecaster with Moody’s Analytics, expects However bleak our decline, Arizona is regaining ground. By the a 3.9% rate of growth in 2011; a substantial, much-needed boost to end of 2010, Arizona had added jobs for four months in a row, December 5,475 3,283 December 7,405 4,792 help propel us back to pre-recession days. dropping unemployment from 9.5% to 9.4%, while the nation as a hether it’s a clearance sale on a high-quality pair of shoes, or an investor “buying low to sell high,” savvy shoppers know to capitalize on an opportunity to buy a valued item at a huge discount.

And while Arizona real estate is priced very low right now, the November 5,607 2,509 November 6,679 3,485 whole rose from 9.6% to 9.8% in that same time period. The state October 6,728 4,034 October 7,303 4,444 ost important factor indicative of a good investment isis expected the potential andandworth. youthatsubscribe to the belief that Arizona is a highly desirable destination and will be in much demand in the decades to come, than buying property in today’s market may to add 48,000value jobs in 2011 recent dataIfshows

September 7,116 4,877 September 7,408 3,432 Arizona has become the number-one fastest-growing market for As move the economy accelerated into 2011, national claims for jobless the wisest you can make for your future wealth portfolio. private sector jobs. Metropolitan Phoenix is now ranked second benefits dropped at the end of 2010 to the lowest level in two years.

August 7,186 4,831 August 8,624 3,546 in highest job growth among large cities, only lagging behind The Institute for Supply Management-Chicago Inc. reported its July 7,804 4,651 July 8,671 4,711 Washington, D.C. business barometer ended 2010 at 68.6 (a figure greater than 50 June 5,833 4,584 June 8,138 4,688 “2011 is going to be the best year for Arizona’s economic growth on the barometer signifies an expansion), which is the highest level May 6,106 3,841 May 8,126 3,472 in the past three years,” stated ASU economist Lee McPheters at the in over two decades.

April 6,634 4,115 April 8,552 3,787 47th annual forecast luncheon sponsored by ASU and JP Morgan After more than three years of “forced frugality” among March 7,625 5,127 March 10,077 3,023 Chase Bank. “I think it’s pretty clear we’re on the threshold of American consumers, it seems that shoppers are weary of February 7,179 3,891 February 8,000 4,780 recovery. Arizona is much stronger than it was a year ago,” he non-spending. Holiday 2010 purchasing rose a fantastic 5.5% January 6,344 4,065 January 8,158 3,832 continued. according to the MasterCard Advisors SpendingPulse report.

Exceeding even the most optimistic retail spending forecasts, Total: 79,637 49,808 Total: 97,141 47,992

G E N E R A L E C O N O M I C S N A P S H OT

The Interest Rate Dance

I’ve got to admit it’s getting better. A little better all the time.

I have to admit it’s getting better. It’s getting better since you’ve been mine.

Getting so much better all the time.

30-Year Fixed-Rate Mortgages Annual Average

Distressed Properties Easing Up

Arizona On Sale

Arizona Outpacing The Nation?

2009

An Economy On The Mend

2010

Monthly Foreclosure Activity In Maricopa County

M E T R O

P H O E N I X

Featured Properties PARADISE VALLEY ~ BILTMORE ~ ARCADIA SCOTTSDALE ~ CAREFREE/CAVE CREEK Experience the difference. The connection between you and your agent is vital for complete understanding of what you want and how to get it for you.

When working with Marie, you will feel as though you are her ONLY client. She prides herself on working one-on-one with you and will attend to your every need with personalized service. “I measure my success one client at the time,” she states.

Today more than ever, buyers and sellers are relying on Realtors that have proven themselves in their industry. Let’s talk about the market, your home, your goals and how we can strategize and formulate a plan specific to your personal circumstances. I look forward to working with you!

• Golf and luxury residence specialist • A reputation for personal attention and full commitment • 25 years of real estate experience with international clientele • Outstanding market knowledge • Marie speaks French & Spanish and treats her clients like her friends

Marie Heilman

SILVERLEAF AT DC RANCH • 3862 Sq. Ft. | 3 Bed | 3 Bath | $1,395,000

Premium corner lot right across from the park, this Park Villa has been customized to every detail.

Arizona room, bonus room upstairs, upgraded floor tile throughout, kitchen and bath custom tile, upgraded kitchen countertops and cabinets, Viking appliances including wine chiller and microwave, stunning custom-made stone fireplace, warm faux-finish walls in powder room, master downstairs, two upstairs bedrooms with their own bath and walk-in closet. Beautiful views of the McDowell Mountains. Lovely hardscaped backyard with fireplace and spa. Prestigious address and a wonderful convenient location!

BENT TREE DESERT ESTATES • 3022 Sq. Ft. | 3 Bed | 3 Bath | $679,000

A home with atmosphere! Enter through the double antique doors to a private courtyard and feel the tranquility. Very open living, light and soft colors, with double-way fireplace separating the kitchen and dining areas. Master suite separated from the two guest bedrooms. Guest suite has private entrance.

Artist studio could be used for guest house/4th bedroom or home office. Very private and peaceful backyard adjacent to open desert, views of the mountains and beautiful pool. Easy access to freeway and close to restaurants, shopping, hiking, golf and more.

The Real Estate Market

ASSOCIATE BROKER

Phone: 480.570.5555 Properties@MarieHeilman.com

What’s Expected in 2011?

8701 E. Vista Bonita #200 Scottsdale, AZ 85255

Fax: 480.515.0695

“Real Estate is a lifetime of loyal relationships”

www.MarieHeilmanHomes.com If your home is currently listed, this is not a solicitation for that listing.

DC RANCH | COURTYARDS AT DESERT PARK • 1751 Sq. Ft. | 2 Bed | 2.5 Bath | $499,000

Located in the heart of DC Ranch, just across from the Village Health Club & Spa! Walk to the McDowell Mountain trails, community center and restaurants. Single-level, most popular floor plan, north/south exposure, new condition with enclosed backyard, luxury upgrades. A community with a European flair and gated.

Enjoy a home with virtually no maintenance. You will feel at home right away. Call today for your showing!

Produced by Desert Lifestyle Publishing • 480.460.0996 • www.DesertLifestyle.net

Mortgage Interest Rates

A Look Back at the Good, the Bad and the Ugly