Scottsdale Economy

Articles about the economy and consumer tips

The Scottsdale housing recovery is expected to be the primary driver of the Scottsdale economy this year.

Scottsdale housing to drive the economy this year.Homebuilding activity will likely remain the strongest growing component of the economy in 2013, followed by consumer spending, increased domestic energy production, and stimulus from the Federal Reserve.

Home sales rebounded to the strongest level in five years in 2012, as home building bounced back to levels not seen since early in the recession. Near record low mortgage rates, rising home prices and a drop in foreclosures have combined to bring buyers back to the Scottsdale housing market.

There’s a lot of pent-up demand for Scottsdale housing, and very little supply. As demand continues to improve, home builders have nothing to sell. They’ll have to build. Growth in building will mean adding not just construction jobs, but also manufacturing jobs building the appliances and furniture needed in the new homes, which in turn drives overall consumption higher.

Economists say the tight supply and renewed demand for Scottsdale housing should lead to higher home values — about a 3.7% increase is anticipated.

But even with the bullish outlook on Scottsdale housing, economists are still forecasting only a modest rise in the overall economy this year. The consensus estimate is for economic growth of about 2.4% in 2013, only a modest improvement from the 2012 growth rate of about 2% they’re forecasting when the final numbers are in.

The biggest concern economists have is a standoff on Capitol Hill. About three-quarters of those surveyed recently picked Congressional gridlock — which could result in a cutback in federal spending — as the biggest problem facing the U.S. economy.

What do you think? Do you think Scottsdale housing is going to be the leading driver of the Scottsdale economy this year? Or will another driver take control? We’d love to hear your opinion. Just leave your comment below.

It’s hard to believe, but these days, we pay for many things that used to be free. And you don’t need to be all that old to remember a lot of these “once free” things that we pay for today.

Are there any other things you can think of that used to be free that we now pay for? We’d love to hear what you can add to the list Stacy just mentioned in the video. Use the comment box to sound off.

A Scottsdale home warranty may save you some money, but before you shell out money for one of these protection plans, read the fine print. Same goes for extended warranties, cell phone warranties, as well as pet insurance…

Video on Scottsdale Home Warranty and Other Protection Plans

Have you had a Scottsdale home warranty that actually paid off? We’d love to hear about your experience with your warranty. Comment below…

Economy Confidence IncreasingScottsdale economy and home value confidence seems to be on the rise, according to Fannie Mae’s April National Housing Survey.

Americans continue to expect home prices to go up, with the projection averaging 1.3 percent over the next 12 months, the highest value recorded.

A high percentage (71%) of Americans still say it is a good time to buy while the percentage (15%) who said it is a good time to sell was up 1 point from March.

Doug Duncan, Fannie Mae’s chief economist, says “consumer views of housing market conditions have become more supportive of home purchases, and sustained healthy hiring is required to help realize these improved expectations.”

Scottsdale Economy Appears to be Increasing

The percentage of Americans who believe the economy is on the right track rose to 37 percent, a 2 point increase from the previous month and the highest level in the survey’s two-year history. Still, an even greater 56 percent believe the economy is moving in the wrong direction.

Also, 23 percent of Americans reported their household income is significantly higher than it was a year ago, while 36 percent said their household expenses are significantly higher since the same time period. Both categories rose 2 percentage points compared to March.

The expectation for average rental prices decreased slightly to 3.6 percent; in March, respondents expected rent to go up by 4.1 percent over the next 12 months.

If respondents were to move, 32 percent said say they would rent while 64 percent said they would buy. The percentage of those who said they would rent increased 2 points and reached the highest level since November 2011.

With the Scottsdale economy and home value confidence apparently increasing, would you say things are on the right track, or moving in the wrong direction? We’d love to hear your thoughts.

Housing policies caused the financial crisis, according to Peter Wallison, a scholar at The American Enterprise Institute. Wallison lays all the blame on Fannie Mae and Freddie Mac, along with government intervention.

Questions or comments, use the comment link below. We’d love to hear from you.