Metro Phoenix appears to be slowly and steadily emerging from the ashes of the real estate collapse of five years ago, but is the city headed toward a re-bubbling of the market and repetition of all the sordid problems of that historical time?
While some critics believe history is destined to repeat itself, key players in the metropolitan Phoenix real estate industry believe such gloom-and-doom soothsaying is bogus and completely without merit.
‘Growth’ or ‘Bubble’?
Michael Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business at Arizona State University, believes the Metro Phoenix real estate market is healing and stabilizing. “The idea that there is another bubble in the real estate market is absurd. We are just seeing a normal reaction to lack of supply. Prices are still below the long-term trend line and none of the conditions that define a bubble are currently in existence.”
While noting that bubbles rarely occur in the same market where they just burst, he observes that “it is fallible human nature to be over-sensitized to them.” But his view is the Phoenix market has not plateaued and will continue to rise until more sellers are tempted to sell.
It is impossible to predict the future but there are some very good indicators that the real estate market in Phoenix is on the rise. If the market is on the rise, the value of homes is rising as well, making it a better time to sell than before if that is in your plans. How do our current rates compare with the boom and bust of recent years in the Arizona housing market? This article can shed some light on this crucial topic.
Click here to read more: http://bit.ly/1Eio3vA