3 Reasons the Housing Market is NOT in a Bubble

With housing prices appreciating at levels that far exceed historical norms, some are fearful that the market is heading for another bubble. To alleviate that fear, we just need to look back at the reasons that caused the bubble ten years ago.

Last decade, demand for housing was artificially propped up because mortgage lending standards were way too lenient. People that were not qualified to purchase were able to attain a mortgage anyway. Prices began to skyrocket. This increase in demand caused homebuilders in many markets to overbuild.

Eventually, the excess in new construction and the flooding of the market with distressed properties (foreclosures & short sales), caused by the lack of appropriate lending standards, led to the housing crash.

Where we are today…

1. If we look at lending standards based on the Mortgage Credit Availability Index released monthly by the Mortgage Bankers Association, we can see that, though standards have become more reasonable over the last few years, they are nowhere near where they were in the early 2000s.

2. If we look at new construction, we can see that builders are not “over building.” Average annual housing starts in the first quarter of this year were not just below numbers recorded in 2002-2006, they are below starts going all the way back to 1980.

3. If we look at home prices, most homes haven’t even returned to prices seen a decade ago. Trulia just released a report that explained:

“When it comes to the value of individual homes, the U.S. housing market has yet to recover. In fact, just 34.2% of homes nationally have seen their value surpass their pre-recession peak.”

Bottom Line

Mortgage lending standards are appropriate, new construction is below what is necessary and home prices haven’t even recovered. It appears fears of a housing bubble are over-exaggerated.  Give me a call to discuss the current market and how it affects you – J.P. Cook – 602-320-4253.

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4126 E Camden Avenue San Tan Valley, AZ 85140

$477,000

3 Beds

2 Baths

1,942 SqFt

Status Active

MLS # 6650702

Property Type Single Family Residence

Price Type --

Affordable! 3 Car Garage & Pool! Slice of paradise in Castlegate , Queen Creek/San Tan Valley! This beautiful 3 bedroom + den/flex or 4th bed, 1,940 sq ft residence & backyard oasis defines comfort and style. Your 3-car garage features two roll-up doors, a side door for yard access to where the double side gate opens to RV parking, a toy owner's dream! Step inside to the heart of the home to see 3 living spaces kitchen/great room, living/dining, & de/flex/4th bedroom. You'll love it all, from the beautiful tree shaded grand front patio, the stylish archways & light bright windows to the private backyard oasis with mature landscaping. Primary suite offers the indulgence of a soaking tub next to a separate shower, walk-in closet, double sinks, W/C & 2 garden views. See it & fall in love! Two additional bedrooms ensure ample space for family or guests. Relax in your own backyard sanctuary, where a sparkling pool awaits your enjoyment. The extra-tall privacy wall ensures tranquility, and when you're in the mood for outdoor entertaining, the stylish outdoor bar & BBQ area is your go-to spot for creating unforgettable memories. And the allure extends beyond the main living space - a pull-down ladder reveals an accessible attic providing a perfect storage solution. Plus a free-standing 'pool shack', finished inside, currently a 'she-shed' could be an arts and crafts workshop or more storage & it's equipped with a window-mounted A/C for comfort. To sweeten the deal, the seller is open to carryback financing with 50% down, making this dream home even more attainable. Conveniently located near shopping, dining & schools, this residence is a rare gem! Don't miss this extraordinary opportunity to call this stunning home yours, complete with a 3-car garage, a toy friendly double side gate, and a refreshing, private, garden party retreat.

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4002 N 113th Avenue Avondale, AZ 85392

$477,000

3 Beds

2 Baths

1,798 SqFt

Status Active

MLS # 6665765

Property Type Single Family Residence

Price Type --

Welcome to your new oasis in Avondale, AZ! This stunning 3 bed, 2 bath home boasts luxury and comfort at every turn. The expansive travertine patio leads you to a sparkling pool, perfect for entertaining or unwinding after a long day. Inside, you'll find a marble fireplace that adds elegance and warmth to the space. Upgraded light fixtures illuminate the open concept layout, showcasing the beautiful tile flooring throughout. The gourmet kitchen boasts top-of-the-line appliances and ample counter space for all your cooking needs. With 1798 sq ft of living space, this home offers comfort and style at every turn. Don't miss out on the opportunity to make this your forever home in Avondale!

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27370 W Sierra Pinta Drive Buckeye, AZ 85396

$477,000

2 Beds

2.5 Baths

1,856 SqFt

Status Active

MLS # 6648953

Property Type Single Family Residence

Price Type --

EXPANDED SANCTUARY WITH GUEST SUITE ON A HUGE 15,373 SQ FT PRIVATE WALLED LOT! 2 Bed, 2 .5 Bath at 1,856 sq ft, shows like a model. Paver Drive, walkway & large paved courtyard w\mountain views. Inside you'll find 8 ft doors. Kitchen features Quartz counters, backsplash, pendant lights, & walk in Pantry. Owner's Suite w\Quartz counters, modern walk in tiled shower w\seat, dual sinks, & huge walk in closet. Guest room has an en-suite full bath with tub, perfect for guests. There's also a half bath with pedestool sink. Laundry room provides space for a work station. Garage has a 4 ft extension, built in storage cabinets, water softner, insulated door & is plumbed for a sink. The huge backyard has an epoxy patio & is a blank canvas for you to design your own entertainment area or pool

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5069 N Atwood Court Prescott Valley, AZ 86314

$476,694

2 Beds

2 Baths

1,307 SqFt

Status Active

MLS # 6694713

Property Type Single Family Residence

Price Type --

A beautiful Capstone Home in the most sought after community in Prescott Valley ''Jasper'' This home is MOVE-IN-READY. This home features 2 bedrooms, 2 baths, and a tandem 3 car garage. White shaker cabinets, quartz countertops, luxury vinyl plank flooring and 12'' by 24'' tile in the bathrooms and primary shower. A great room fireplace with tile surround makes this open floor plan comfortable and cozy. Come see this home today!

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22608 W Mohawk Lane Surprise, AZ 85387

$476,375

4 Beds

3 Baths

2,511 SqFt

Status Active

MLS # 6696912

Property Type Single Family Residence

Price Type --

Introducing the latest addition to Surprise, is Frontera in Mesquite Mountain Ranch. Available now is this new detached single-level home, situated on a corner next to a park, this charming one-story residence features four bedrooms, two and a half bathrooms, and a two-car garage. Boasting front yard landscaping, granite countertops, a generously sized kitchen island with a single bowl sink, tile flooring, stainless steel appliances, and a gas range, this home is designed for modern living. It also comes equipped with a smart home package, a gas tankless hot water heater, and Deako smart light switches for added convenience. Residents of Frontera, will have access to an array of community amenities, including hiking and biking trails, pickleball and basketball courts and play areas.

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7123 Pair O Dice Road Show Low, AZ 85901

$476,000

3 Beds

2 Baths

1,404 SqFt

Status Active

MLS # 6573232

Property Type Single Family Residence

Price Type --

Beautifully remodeled 3 bed 2 bath home in the ideal location of Linden. Close to Show Low, shopping and restaurants, but with country living! This home has been lovingly remodeled this year with new flooring, a brand-new kitchen, fresh paint from floor to ceiling, a new roof and so much more! Take advantage of the beautiful yards, garden space, outside pavilion, fire pit and so much more! This home has indoor and outdoor space to entertain through all 4 seasons! Seller is directly related to the listing agent.

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2321 E Millbrae Court Gilbert, AZ 85234

Open House

$476,000

3 Beds

2 Baths

1,486 SqFt

Status Active

MLS # 6687346

Property Type Single Family Residence

Price Type --

Welcome to this charming property featuring a cozy fireplace, creating a warm and inviting atmosphere. The natural color palette throughout the home adds a sense of tranquility and easy living. With additional rooms for flexible living space, you have endless possibilities to customize to your needs. The primary bathroom boasts a separate tub and shower, double sinks, and good under sink storage. Step outside to enjoy the fenced backyard with a covered sitting area, perfect for relaxing or entertaining. Fresh interior paint and new flooring throughout the home provide a modern touch. Don't miss the opportunity to make this your dream home!

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9730 W Albeniz Place Tolleson, AZ 85353

$475,990

5 Beds

3 Baths

2,688 SqFt

Status Active

MLS # 6701785

Property Type Single Family Residence

Price Type --

Beautiful Brand New Home in a Highly Desirable West valley location. Under Construction - Est completion of August. Features countless upgrades such as 9' ceilings, Shaw 17x17 Tile, Granite countertops in the kitchen. Whirlpool Stainless steel appliances. White shaker cabinets with Stainless Steel Pulls. Energy-efficient features throughout, WIFI & programmable thermostat. Spacious walk-in closet in the primary suite. Front yard landscaping, covered patio in the backyard. Spectacular Mountain Views! The community features a greenbelt, a premium neighborhood park with playground. Conveniently located near the new 202 freeway, schools, shopping and dining, and Estrella Mountain Regional Park.

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12426 W Levi Drive Avondale, AZ 85323

$475,973

5 Beds

3 Baths

2,723 SqFt

Status Active

MLS # 6690949

Property Type Single Family Residence

Price Type --

Discover the difference in this home and buying experience! Under construction Rockrose design at Highland Sage. 2-story includes an open-concept floorplan boasting an inviting kitchen and bright great room that opens to the private, covered outdoor room, the two-car garage leads you into the drop zone, front covered porch with downstairs bedroom and bathroom, bonus room upstairs with 4 other bedrooms. $38,000 in upgrades are included in this home! 5.99% Special financing is offered. Alamar is a new kind of master-planned community in the West Valley spread over 1,150 acres in Avondale, just 18 miles from Downtown Phoenix.

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10722 E Dragoon Circle Mesa, AZ 85208

$475,610

4 Beds

2.5 Baths

1,807 SqFt

Status Active

MLS # 6652744

Property Type Single Family Residence

Price Type --

BRAND NEW HOME TO BE BUILT! UP TO $20,000 IN BUILDER INCENTIVES ON THIS ONE! LOW interest rate programs available! Diamond Court, built by Newmark Homes, is an 18 home community nestled in a prime location in Mesa with lots of new retail/restaurants close by. This floorplan (see photos) is the Residence 3 with the 4th bedroom option added! Dual walk in closets in Primary Bedroom! The slab is already poured on one of the larger premium lots in the subdivision- check out the extended length driveway and has no neighbors behind it! Some structural options have been added, but buyer can still choose flooring, cabinets, counters, etc!

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13148 W Nogales Drive Sun City West, AZ 85375

$475,500

2 Beds

2 Baths

1,904 SqFt

Status Active

MLS # 6660568

Property Type Single Family Residence

Price Type --

**ABSOLUTELY BEAUTIFUL** SAN MARCO MODEL** PRIDE OF OWNERSHIP ABOUNDS** IN THE SPOTLESS GEM **NEWER STAINLESS STEEL APPLIANCES WITH CHOICE HOME APPLIANCE WARRANTY UNTIL 2026** NEWER AC** TURNKEY OPTION IS AVAILABLE** EXTENDED COVERED PATIO WITH AWNING AND SUNSCREENS** WORRY FREE LIVING WITH TRANSFERABLE HOME WARRANTY THROUGH 2026**H2O CONCEPTS WHOLE HOUSE WATER SYSTEM **PRACTICAL MEETS LUXURY** IN THIS STUNNING HOME** ARIZONA LIVING AT ITS FINEST **SOLAR PANELS FOR ENERGY SAVINGS!

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501 W Dublin Street Chandler, AZ 85225

$475,500

3 Beds

2 Baths

1,748 SqFt

Status Active

MLS # 6686590

Property Type Single Family Residence

Price Type --

Lovely 3 bed/2 bath home located on a large lot with RV gate in Chandler with NO HOA! Come take a look before it's gone! Great House! a MUST SEE! Close to schools and shopping center.

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