Flyer, you bring up a good point–that any move should consider what the future holds for each state, not just what conditions are now. At the rate California is going, what is its future compared to Phoenix? Which is a better place to put one’s growing family?
Case-Schiller just announced the home value changes for the last one year for the largest 20 cities. Phoenix house prices (sold) in December were 26% higher year over year, fastest climb in the nation. Granted, most of that was clearing out the debris of foreclosures and the snapping up of rental houses and flips since Phoenix was the epicenter of the housing bubble. But the strong rebound is undeniable, and days-on-market are way down and supply going forward promomises more of the same.
More fundamentally, what do current trends suggest for Phoenix vs. San Diego? A comparison of their utility costs should include water and sewer as well as electricity. San Diego’s are soaring. Out el. costs are about 30% higher and guaranteed to climb rapidly as our Global Warming Solutions Law now kicks in. Same trend is locked in with our water and sewer rates. Our income taxes are far higher than Arizona’s for families in this income range, and our property taxes likely to rise as Prop 13 is gutted by the even more tax-and-spend legislature.
All this will continue to fuel the exodus of middle and upper income taxpayers out of CA to friendler tax and regulation states. AZ has a conservative, business-friendly government while Sacramento has seemingly declared war against the job-creators. As a result AZ’s future looks brighter as CA’s looks bleaker.
Bottom line, what counts is not just current conditions, but where trends are heading.
