Are you Worried?

Watching the news has definitely been a challenge over these past few months. From Ukraine to record inflation, market rumblings to interest rate hikes, it is all unsettling. Both our families have experienced war, so the horrors in Ukraine unsettle us the most. We can’t imagine what families are going through and the losses of life and property are beyond comprehension. It makes us so grateful to live in this country each day.

Our experience during the Great Recession was more recent and we all have a bit of dread at the thought of another recession coming our way. It was such a challenging time here, but because of that time, we are extra grateful to live in Arizona today. We are in such a different place today and far more recession-proof than we have ever been before.
Here are five reasons why you shouldn’t worry (even though the news makes you feel like you should).

1. Arizona Has the Jobs. Arizona is in the middle of tremendous organic economic growth — the beneficiary of high costs, unfavorable tax policies, and restrictive regulations in other states. Businesses are flocking, building, expanding, and hiring here at a record pace. Arizona’s economy is ripe with opportunity and that is attractive to investors of all kinds. Arizona just hit a historic low unemployment rate of 3.3 percent in March. That is great because as long as there are jobs, and money is flowing in for investment, there is income for workers and sales tax revenue for municipalities.
2. Our Property Values Have Increased and Will Continue to Do So. If you have owned your home for even one year, you have equity. That equity provides you with security, stability, and options. While refinancing is no longer as attractive, you can still access your equity via a Home Equity Line of Credit. You can opt to sell your home and downsize, or even sell and opt for the RV lifestyle! Demand is still over the top, and our inventory of homes is still below where it was a year ago. Property values may stabilize a bit but they are not tanking and demand is not going away.
3. Market Stability is Not a Bad Thing. The increase in rates and consumer anxiety may slow down the market a tiny bit, and that is OK. A more than 30 percent increase in property values in one year is not sustainable for years on end. Getting back to a better normal is healthy. Good buyers need to be able to buy good properties. Thousands of solid-financed buyers were shut out of the wild market last year. A slight cooling off would give them an opportunity to get back into the market and offer mom and pop investors opportunities again, as well.
4. The Hot Market Gave Us a Cushion. Last year was a great year for both large and small businesses. Companies and individuals made more money and saved more money than they had in years. There is still a lot of cash sitting on the sidelines, which provides stability in the event there is some market fluctuation. Maybe the Great Recession taught us to be better savers.
5. We Live in One of the Hottest Cities in the Country. Maricopa County has been the fastest growing county in the country for five years. We have one of the hottest housing and rental markets in the country and one of the hottest job markets, as well. We are one of the top relocation destinations in the country, which brings growth, and that growth raises the tide for all. Yes, there is more traffic, but there are more people to work, buy goods, buy homes, and pay taxes. All of that is positive for our economy and our property values.

So, take a breath and relax. Enjoy and appreciate that you live in a great place that is safe from war, thriving economically, and forward-thinking.

John and Natascha Karadsheh are co-owners of KOR Properties, a boutique real estate brokerage serving the Valley of the Sun, and the creators and founding sponsors of Mesa Food Truck Fridays.

John has been a Multi-Million Dollar producing agent for over 20 years and is an Accredited Buyers Representative (ABR) and Certified Residential Specialist (CRS), a member of the Arizona Regional MLS Rules & Policies Committee & Appeals Committee, and the West and Southeast Realtors of the Valley Professional Standards Committee.

Natascha is an Associate Broker, a Multi-Million Dollar Producer, Founder of Mesa Food Truck Fridays, and Member, and Past-Chair of the City of Mesa Economic Development Advisory Board and serves on the Board of Directors of the Greater Phoenix Economic Council.

You can reach John at (602) 615-0843 and Natascha at (602) 909-4995, or visit their website: KORProperties.com.