Hurricane Katrina - The Effect on Phoenix Housing

Hurricane Katrina – The Effect on Phoenix Housing

Hurricane Katrina – The Effect on Phoenix Housing
September 05 , 2005 by Steve Mullis

Because we do not live in a vacuum, it is easy for us to see how the consequences of Hurricane Katrina will affect all of our lives for years to come. While it is true that those most affected are the families and individuals who have been devastated with the loss of family, friends and all of their possessions, the ripple effect will not stop there.

As examples, the affect on fuel, shipping, housing, health care costs, insurance, stocks and building materials will be felt for years. Last year we had a shortage of concrete products, which affected housing starts and completions. For the next several years, we may well experience similar building material shortages that could affect housing production and be a significant factor in the continuing strong real estate market in the greater Phoenix Metropolitan area.

These factors and others being true, (I.e. employment, climate, schools, health care, retirement, quality of life, etc.) I believe we can expect the Phoenix residential housing market to stay strong for many years to come.

Before the most recent catastrophic hurricane event, housing experts anticipated that the Phoenix housing market would out perform the national average by 200%. The 2005 median house price in Phoenix increased by 47% over the median house price in the summer of 2004. Recently a report published by National City Corp. showed Phoenix as #108 as it related to overpriced residential housing markets. We are still one of the most desirable and affordable housing markets in the United States! As the # 1 destination for folks migrating from cooler climates to warmer climates, Phoenix was followed by Florida. In fact, the next four placeholders were all in Florida. I expect that may be changing very soon.

The forecast for the Phoenix residential housing appreciation rates before the most recent events was 1% - 3% per month. That’s right, 1% - 3% per month. This was if the residential housing market began to slow down. It has not slowed down and does not appear to be doing so soon. On top of record residential housing appreciation rates, now there are more houses on the market.

To all the refugees from hurricane Katrina or newcomers from anywhere in the world, welcome to Arizona!

Keep the faith!

Steve Mullis
Coldwell Banker Success
Mobile 602-920-9315
Email stevemullis@cox.net
Website http://www.stevemullis.com

Steve Mullis is a regularly featured contributor whose articles are published under Real Estate News.

Love Quotes Life Quotes Love Quotes Salmon Recipes Love Quotes Recipes Funny Quotes Funny Quotes Love Quotes Cooking Recipes Funny Quotes Famous Quotes Free Recipes Free Recipes Diabetic Recipes