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Arizona's housing recovery stalled due to lack of jobs

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By : vithya coumar    99 or more times read
A conference recently held at Arizona's Urban Land Institute by local economists and market analysts discussed the direct link between the amount of job losses and the stalled housing market. Previously, Arizona had estimated that there would be noticeable increases in Phoenix's home values by 2012, That date is now being canned for a more realistic date of 2014.

It is estimated that within the Phoenix metro area there are approximately 80,000 homes that were left empty in the wake of the recession. It was hoped that Phoenix would have seen some improvement in their housing market by the year 2012, but the amount of jobs that have been lost over the past couple of years is really taking its toll in the housing market. It is now being projected that it is going to take up to five years for job levels to return to pre-recession levels. By current estimates Phoenix has lost 210,000 jobs over the past 24 months. Experts estimate that there will be some bright spots in the housing market by the end of 2012, but it will not be until 2014 before the market sees the demand for homes equal the amount of eligible buyers.

New home construction has also hit all time lows for the Phoenix area. The amount of new homes constructed matches the numbers that were reported in the 1970's. Recession re-bounders are hoping that Phoenix will once again experience another growth spurt; this will add potential buyers to a market with an abundant amount of homes available. One analyst stated that evidence of Phoenix's stalled market was the fact that new utility hook-ups were the lowest they have been since the 1950's.

One expert stated "the market is like a mixture of oil and water, once it has been shaken it is going to take time to settle". This was in reference to amount of variables that played a roll in the housing market crash. Foreclosures are going to have to be completed and resold, and current homeowners that are delinquent on their loans are going to have to catch up on their payments, move out, or surrender their homes back to the lending bank. The market will only settle down when these toxic assets are dealt with properly, and more jobs become available.
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