3 Reasons the Housing Market is NOT in a Bubble

3 Reasons the Housing Market is NOT in a Bubble | Simplifying The Market

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.

3 Reasons the Housing Market is NOT in a Bubble | Simplifying The Market

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 Reasons the Housing Market is NOT in a Bubble | Simplifying The Market

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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36262 N Murray Grey Drive San Tan Valley, AZ 85143

$475,000
4 Beds
2.5 Baths
2,301 SqFt
Status Active
MLS # 6692139
Property Type Single Family Residence
Price Type --
Welcome to your versatile new home, where thoughtful design meets individualized comfort. The master bedroom offers sanctuary and storage, while the loft provides space for strategizing, entertaining, relaxing, and focusing. The kitchen boasts upgraded features and a central island for both socializing and organization. Throughout, elegant tile flooring creates cohesion. Outside, enjoy the extended covered patio and front porch for relaxation. Practical amenities include prewired TVs and ceiling fans, along with gas options for convenience. And don't forget the stunning mountain views! Welcome home to your perfect retreat.

613 W Park Avenue Chandler, AZ 85225

$475,000 - 3Br/2Ba -  for Sale in College Park 6, Chandler
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$475,000
3 Beds
2 Baths
1,728 SqFt
Status Active
MLS # 6693730
Property Type Single Family Residence
Price Type --
Spacious haven without the constraints of an HOA! This charming 3-bedroom, 2-bathroom home boasts a sprawling living space of 1,728 square feet, enhanced by a den and family room. Inside is a formal living and dining rooms. The kitchen offers a separate eating area, perfect for casual meals or morning coffee. Outside, the covered back patio provides a serene retreat overlooking the low-maintenance yard. With block fencing ensuring privacy and security, this home offers the perfect blend of comfort, convenience, and freedom. Welcome home to a lifestyle of relaxed living and endless possibilities.

6962 W Glenn Drive Glendale, AZ 85303

$475,000
3 Beds
2.5 Baths
2,500 SqFt
Status Active
MLS # 6695811
Property Type Single Family Residence
Price Type --
Clean, well maintained 3 bedroom, 2.5 bath w extra large loft and family room, sitting on a corner lot. Extra wide stairway leading to second floor w safety gate at top. Bedrooms & Laundry all upstairs. Grab-bars in all bathrooms. Beautiful kitchen, extended granite counters & white cabinets w pull out organizers, corner pantry, upgraded appliances, Lg. breakfast island open to living space makes home great for entertaining. Double-gate to backyard that has well established shade trees, extended patio for relaxing, 220 volt hookup installed, and plenty of room for a pool. Storage cabinets in garage, Solar sunscreens on every window. House pre-wired ethernet, wired surround sound in family room and loft as well as home security system & med sized dog door. Ready to be your new family home

326 S River Road Payson, AZ 85541

$475,000
3 Beds
2 Baths
2,103 SqFt
Status Active
MLS # 6579027
Property Type Single Family Residence
Price Type --
Two homes on a peaceful 1.57 acres with mountain views near the Tonto Creek. The primary home is a lovely 3 bedroom, 2 bath home featuring a beautiful yard with inviting gazebo, a huge 28X32 garage/workshop, 2 carports, and multiple sheds. The property has a private well, valuable irrigation rights and horses are allowed with lots of room for gardening and fruit trees. The 2nd home is a 2 bedroom, 1 bath, 1152 square feet mobile home. Use as a guest house, multi-family property or income producing rental with a separate driveway, septic, electrical and privacy.

15270 W Taylor Street Goodyear, AZ 85338

$475,000
5 Beds
2.5 Baths
2,030 SqFt
Status Active
MLS # 6621249
Property Type Single Family Residence
Price Type --
THIS 5 BEROOM, 2.5 BATH TOTALLY REMODELED HOME IS WAITING FOR THE PERFECT FAMILY TO ENJOY. FROM THE MINUTE YOU WALK INTO THE LIVING SPACE WITH ALL NEW FLOORING THROUGHOUT THE HOME, OPEN KITCHEN, DINNING AND FAMILY AREA TO THE STUNNING STAIRCASE WITH BANISTER. ALL NEW KITCHEN, BATHROOMS, FIXTURES; ADDED PLUMBING, COMPLETE PAINT, NEW SUN SCREENS TO THE GREEN TURF BACKYARD FOR YOUR FAMILY TO ENJOY. THIS IS A HOME OF PURE DETAIL IN DESIGN. CUL DE SAC LOT!!!!

13641 W Pyracantha Drive Sun City West, AZ 85375

$475,000
3 Beds
2 Baths
1,849 SqFt
Status Active
MLS # 6627458
Property Type Single Family Residence
Price Type --
*Pre-Listing Inspection Completed!* This spacious home was just remodeled into a beautiful, bright and open work of art right in the heart of Sun City West, a renowned 55+ community. You're immediately greeted with a great room with separate access to the back yard or Arizona room. It flows into the open concept kitchen, with a 6-person island hosting a brand new electric range. You have plenty of cabinet space throughout the home. Enjoy the tranquility of your private Arizona room and the sunsets in your fully fenced backyard. Feeling social? Buzz out your front door and make a U-Turn to the official RH Johnson Recreation Center equipped with a Pool, Pickelball Courts, Tennis Courts, Dog Parks, and a Members-Only Library (shh!). Location, Location, Location! This spacious home was just remodeled into a beautiful, bright and open work of art right in the heart of Sun City West, a renowned 55+ community. You're immediately greeted with a great room providing access to either the back yard or Arizona room. Flowing into the open concept kitchen with ALL new appliances, you will find a 6-person island hosting a brand new electric range and hood. You have plenty of cabinet space, brand new Luxury Vinyl Plank flooring, brand new paint, LED lighting, blinds, and skylights throughout the home. Your master bath boasts a modern, spacious shower, water conscious toilet and walk-in closet in ADDITION to the sliding door access to the Arizona Room. Your second master suite is on the North side of this split floor plan equipped with a large closet and matches the theme of the other bath. Guest bedroom is off the kitchen and very spacious. 2-car standard garage has built-in cabinets on both sides with pedestrian access door to the side yard. Feeling social? Buzz out your front door and make a U-Turn to the official RH Johnson Recreation Center equipped with a Pool, Billiards, Bowling Alley, Pickelball Courts, Tennis Courts, Dog Parks, and a Members-Only Library (shh!). Brand new water heater installed by seller. (not installed by seller: new age tin/asphalt roof, roof AC unit)

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$475,000
2 Beds
3 Baths
1,511 SqFt
Status Active
MLS # 6626364
Property Type Single Family Residence
Price Type --
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4504 Besant Way Wickenburg, AZ 85390

$475,000
2 Beds
2.5 Baths
1,720 SqFt
Status Active
MLS # 6628007
Property Type Single Family Residence
Price Type --
Enjoy the Privacy of 2 Primary Suites. Live the good life with a owned Solar System that will have you enjoying APS energy credits throughout the year. Nestled in the Pinto Neighborhood this home features HOA managed landscape & private cul-da-sac location. Your motorized patio shades will provide privacy screening while enjoying the gorgeous sunset colors every night. Upgraded flooring, cabinets, light fixtures throughout with an AMAZING number of cabinet pull outs designed into your kitchen. Home includes custom window covers with additional screening at 12ft sliding wall of glass. Garage includes ample custom cabinet storage, work space & owned RO system.

4200 N Miller Road Scottsdale, AZ 85251

$475,000
3 Beds
2 Baths
1,419 SqFt
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MLS # 6628992
Property Type Apartment
Price Type --
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1265 E Judi Street Casa Grande, AZ 85122

$475,000
4 Beds
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2,321 SqFt
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Property Type Single Family Residence
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1970 Maritime Drive Show Low, AZ 85901

$475,000
3 Beds
2.5 Baths
2,009 SqFt
Status Active
MLS # 6636341
Property Type Single Family Residence
Price Type --
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$475,000
3 Beds
2.5 Baths
2,486 SqFt
Status Active
MLS # 6652308
Property Type Single Family Residence
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This charming two-story home features a spacious layout with a downstairs half-bathroom and a convenient office space. The large loft upstairs is an ideal kids' playroom, offering ample space for creativity and play. Step outside to a beautiful pool, perfect for relaxation and entertainment. Located just minutes away from hiking trails, it seamlessly blends indoor comfort with outdoor adventure. Appliances, carpeting, and an air-conditioning unit were all updated since May 2023!

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