“The only limit to our realization of tomorrow will be our doubts of today.” - F.D. Roosevelt
GreenTucson April, 2018
Before delving into economic issues, on a lighter note, are some noteworthy Tucson Events:
Israel@70 Israel Festival April 22nd
Broadway in Tucson April 24th – 29th
The Bureau of Labor Statistics reported that the economy added 103,000 jobs in March, falling short of economists’ expectations. The NY Times Ben Casselman wrote “March was the 90th consecutive month of job growth, by far the longest streak on record. Employers have added an average of just over 200,000 jobs per month so far in 2018, a pace that has held relatively steady for the past two years. The unemployment rate hasn’t budged since October, but remains at its lowest level since 2000….wage growth remains weaker than most economists would expect when unemployment is so low.” He added “The uptick in wages was sufficient to suggest that the job market remains healthy, but probably not big enough to force the Federal Reserve to reconsider its policy of gradual rate increases, said Michelle Meyer, head of United States economics for Bank of America.” One elephant in the room is a trade war, which creates uncertainty, market volatility and may affect consumer spending. The other is the Congressional Budget Office’s report projecting the Federal Budget Deficit is to exceed $1 Trillion in 2020.
I have ben greeting and sending off family to the airport a lot lately and it has really has changed. My grandson, Zeke was immediately wowed by the stand of Saguaros (don’t have those in D.C.). Parking is shaded by the solar arrays. Four new restaurants were recently added, part of the airport’s $28 million “A Brighter TUS”. The Tucson Airport authority reports New Study Values “Tucson Airport Authority’s Annual Economic Impact at $7.4 Billion”. Our local guru Economist, Dr. George Hammond, stated that Tucson is forecast to generate job 1.3% in 2018 and again to 1.4% in 2019. He stated “The Arizona economy lost some momentum at the end of 2017, with job growth just below the national rate. Even so, the state continues to expand, adding jobs, residents, and income, although the pace is not impressive. The Phoenix metropolitan statistical area (MSA) continues to be the engine of growth for the state, although the Tucson MSA is contributing as well.”
Here’s a snapshot of the of the market comparing March 2018 to March 2017:
For the Tucson North area, both the active inventory and number of closed sales were down 15%. Months of Inventory, at 3.3, was unchanged from March 2017. Median price of sold homes for the month of March 2018, was up 12% from March 2017. The Central area saw inventory up 7% and there were 12% fewer closings; the Median price of sold homes up 14% from March 2017. Of course I am your resource for the specifics for you area of town; I love talking Tucson real estate!
As you may be noticing, interest rates have been steadily increasing. Rising interest rates mean a higher Cost of Waiting. The Cost of Waiting to Buy is defined as the additional funds it would take to buy a home if prices and interest rates were to increase over a period of time. To understand what a change in interest rates means for you, Talk to Me!