The Buzz: Scottsdale Real Estate

 I just read the latest statistical report from OFHEO (Office of Federal Housing Enterprise Oversight) and it’s always nice to read good news about Arizona real estate. Now, granted, the news isn’t as good as it is for Utah, Idaho or Washington - but we had our day.  If you have held property for the last five years, you experienced 93.76% appreciation and if you are an oldtimer (since 1980), then you have seen 332.35% increase.  Let’s keep things in perspective - not bad!  Arizona currently ranks as number 25 with  a .13 % appreciation for the first quarter of 2007 and an annual appreciation (2nd Q 2006 - 1st Q 2007) of 5.22%.

The housing market is never static in the United States and this report just shows how varied it can be.  Seven states show double digit appreciation while seven other states had less than 2% appreciation and even some depreciation.  

First all the good news:

• Nationally, home prices grew faster over the past year than did prices of non-housing goods and services reflected in the Consumer Price Index.  House prices rose 4.3 percent, while prices of other goods and services, excluding shelter, rose 1.6 percent.
• The states with the greatest rates of appreciation between the first quarter of 2006 and the first quarter of 2007 were: Utah (17.0%), Idaho (12.3%), Montana (11.7%), Wyoming (11.7%), and Washington (11.6%).
• The Metropolitan Statistical Areas (MSAs) with the greatest rates of appreciation between the first quarter of 2006 and the first quarter of 2007 were: Wenatchee, Washington (25.6%), Provo-Orem, Utah (19.7%), and Salt Lake City, Utah (19.1%).
• Of the 20 cities with the greatest four-quarter appreciation, five are in Washington state.
• Utah’s three largest metropolitan areas (Salt Lake City, Provo-Orem, and Ogden-Clearfield) were among the five fastest appreciating cities in the U.S.

Now - the bad news:

• The states with the lowest rates of appreciation for the same period were: Michigan (-0.7%), Massachusetts (-0.6%), Nevada (0.6%), Ohio (0.8%), and New Hampshire (1.1%).
• The MSAs with the lowest rates of appreciation for
  the same period were: Punta Gorda, Florida (-4.6%), Sacramento-Arden-Arcade-Roseville, California (-4.4%), and Modesto, California (-4.4%).

One sure thing is that for most homeowners in the United States, the historic trend of housing, just like the stock market, goes up.

For more details about the OFHEO report, click here.   For maps and the full ranking of U.S. cities, and states, click here.