During a recent economic forecast forum held at Arizona State University, experts indicated they expect state and national economies to improve next year.
While they predict full recovery will take several years, the analysts stated they project every economic indicator for the state will improve during 2012, including job growth, incomes, sales and housing. According to their predictions, the state will add 45,000 jobs in 2012 and the unemployment rate will drop to 8.5 percent from its current level of 9 percent.
Among the factors expected to contribute to this projected improvement are population growth, predicted to outpace the national rate and improve demand for single-family homes. This would help to clear the inventory of distressed properties and, as the number of homes on the market shrank, contribute to a rise in home prices.
One real estate consulting firm executive noted that, while real estate data shows more than half of existing-home sale transactions in the third quarter were foreclosures and short sales, the number is declining. Despite this, the executive also indicated housing prices seem to have stabilized, indicating improvements in market conditions could start to drive them upward.