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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Sort by: Select Price, Low to High Price, High to Low Newer Listings First Older Listings First Open House Date

8449 W Rockwood Drive Peoria, AZ 85382

$470,999

2 Beds

2 Baths

2,203 SqFt

Status Active

MLS # 6636533

Property Type Single Family Residence

Price Type --

Price Reduction ,Spacious home in wonderful ''Westbrook Village'' Adult community 20% 40 years to 55 years, 80% 55 years plus, no children under 19 years of age. Located in the newer Phase 2, close to The Vistas Recreation Center. Large bedrooms, huge master bath with tub & shower. Newer A/C. Solar $139. per month. Looking for lots of room, this home has a large Arizona Room, could be heated & cooled for a work out room or area for pets or ?? Come see your dream home today !!

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17798 W Running Deer Trail Surprise, AZ 85387

$470,995

4 Beds

3 Baths

2,040 SqFt

Status Active

MLS # 6658921

Property Type Single Family Residence

Price Type --

This single level Saphire is so inviting and well thought out. The home features 4 Beds, 3 Baths with a bonus den/teen room and a 3-car garage. The Sapphire floor plan welcomes guests with pavers and a covered entry. Off the foyer, you'll find two bedrooms and a full bath. Heading towards the great room you will find the fourth bedroom and den/teen room with a dedicated bath. The home features 9 ft ceilings, 8'6'' paneled interior doors and an extended entry which leads to an open layout kitchen featuring a large upgraded center island, 42-inch upper cabinets, gas SS oven range and a convenient dining area. The great room is nicely sized with a center-meet double sliding door giving the space a light and open feel gracefully leading to the covered patio. The split floor plan features an owner's suite with two walk-in closets and an attached bath. Located in the fantastic community of Desert Oasis features parks, playgrounds and a community pool. Close to the new Frys marketplace with convenient access to the Loop 303 and US-60, nearby Lake Pleasant, Surprise Stadium, Wildlife Zoo, Aquarium & Safari Park in the fast-growing NW Valley. This beautiful home is done right and has so much to offer!

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24067 N 147th Drive Surprise, AZ 85387

$470,980

4 Beds

2 Baths

1,949 SqFt

Status Active

MLS # 6703252

Property Type Single Family Residence

Price Type --

Up to 3% of closing costs incentive offer. Additional eligibility and limited time restrictions apply. MLS#6703252 Discover modern living at Los Cielos at Rancho Mercado with our 40-1 floorplan—a single-story sanctuary featuring 4 bedrooms and 2 baths. The open design seamlessly connects the dining room, kitchen, and great room. Enjoy the kitchen's tiled backsplash, recycle center, and soft close cabinets. Three front bedrooms and 2 bathrooms offer privacy, while the rear primary bedroom boasts a walk-in closet, spa-like shower, and dual vanities—blending luxury with functionality. Welcome to a life of comfort and elegance at Los Cielos!

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5211 W Beryl Avenue Glendale, AZ 85302

$470,900

4 Beds

2 Baths

1,657 SqFt

Status Active

MLS # 6650123

Property Type Single Family Residence

Price Type --

Amazing Remodeled Pool and Home completely remodeled four bedrooms, two baths, two car garage, RV gate. Family room with Fireplace goes out to nice covered patio and large Yard. New Windows, New Cabinets, New Appliances, All New flooring. Remodeled bathrooms. Fresh paint inside and out. You will love this home.

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39104 N Dusty Drive San Tan Valley, AZ 85140

$470,700

6 Beds

3 Baths

2,857 SqFt

Status Active

MLS # 6702974

Property Type Single Family Residence

Price Type --

This meticulously maintained 6-bed, 3-bath home exudes pride of ownership! Step onto the charming porch for morning coffee. Inside, modernity meets care with updated flooring, appliances, fixtures, and window dressings. The warm living room features tasteful carpet and tile, leading to a spacious great room merging family space with an open-concept kitchen, boasting white cabinetry, granite countertops, and a large pantry. Upstairs, a versatile loft complements the main suite with a private bathroom and walk-in closet. With a downstairs bedroom and bathroom, hosting guests is easy. Outside, the backyard with a covered patio opens onto green space for al fresco dining. Welcome home to comfort, style, and modern living!

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651 S Del Rancho Circle Mesa, AZ 85208

$470,504

3 Beds

2.5 Baths

1,784 SqFt

Status Active

MLS # 6444583

Property Type Single Family Residence

Price Type --

$15,500 in Builder Incentives (must use Preferred Lender) for Buyer to use on this NOW COMPLETED Inventory home! This floorplan features 3 bedrooms and 2.5 baths. Beautiful gray shaker style cabinets, granite counters and 12X24 tile throughout the entire first floor! Diamond Court, built by Newmark Homes, is an 18 home community nestled in a prime location in Mesa. Close to new shopping/restaurants!

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4310 E Enmark Drive San Tan Valley, AZ 85143

$470,490

4 Beds

3 Baths

2,264 SqFt

Status Active

MLS # 6668301

Property Type Single Family Residence

Price Type --

Situated in the amenity rich community of Bella Vista Farms. Residents enjoy an amenity-rich lifestyle with exclusive access to an onsite swimming pool, picnic area, splash park, playground, basketball court, volleyball court and greenbelt. The local area is host to the San Tan Regional Park, where locals enjoy biking, hiking, horseback riding and more.

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4578 N 178th Lane Goodyear, AZ 85395

$470,390

4 Beds

3 Baths

2,140 SqFt

Status Active

MLS # 6695606

Property Type Single Family Residence

Price Type --

Brand new, energy-efficient home available by May 2024! This single-story features a split floorplan with the primary suite tucked away in the back of the home. White cabinets with hardware, cream/black granite countertops, travertine-look tile flooring and warm grey carpet in our Crisp package. Abel Ranch is now open in Goodyear. Visit this gated community featuring a park, fitness stations, and more. We're proud to introduce new, professionally curated design packages and luxurious primary suites. We build each home with innovative, energy-efficient features that cut down on utility bills so you can afford to do more living.* Each of our homes is built with innovative, energy-efficient features designed to help you enjoy more savings.

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10746 E Dragoon Circle Mesa, AZ 85208

$470,367

3 Beds

2.5 Baths

1,669 SqFt

Status Active

MLS # 6464259

Property Type Single Family Residence

Price Type --

$20,000 in Builder Incentives(must use Preferred Lender)for a buyer to use on this NOW COMPLETED Inventory home!This floorplan features 3 bedrooms and 2.5 baths. Spacious Great Room area and 8' doors on 1st level. Kitchen has beautiful shaker style cabinets in Ash color and granite countertops. 12X24 tile throughout the entire first floor. Master has TWO walk in closets and a large Walk in Shower! 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!

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2430 E Boulder Avenue Apache Junction, AZ 85119

$470,105

4 Beds

3 Baths

2,377 SqFt

Status Active

MLS # 6691660

Property Type Single Family Residence

Price Type --

This beautiful two story home has 2377 sqft with 3 full bedrooms, 2 full bathrooms and a loft upstairs. Down stairs also has a full bedroom and a full bathroom. Plenty of space for the whole family! Granite countertops throughout the whole home. This home also sites on a corner lot at the end of a cul-de-sac, fantastic location! **This home is on track for an end of June closing.** Contact listing agent for more details and special financing incentives.,

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1255 N Arizona Avenue Chandler, AZ 85225

$470,000

3 Beds

2.5 Baths

1,681 SqFt

Status Active

MLS # 6664981

Property Type Townhouse

Price Type --

Your future home is waiting for you in Tre Vicino, an exceptional gated community ideally situated in the heart of Chandler. With two separate pool areas for both personal use and guests, this property, constructed in 2020, boasts 3 spacious bedrooms, all with walking closets, 2.5 baths, and plenty of living space. Features an open-concept kitchen with granite countertops, a sizable island, and a walk-in pantry that opens to a generous living area, perfect for hosting, a corner lot with a great size backyard, landscape complemented with pavers and artificial turf. Situated on a premium lot and just steps away from the community's green belt common area, this property is conveniently located near shopping, downtown Chandler's entertainment options, and the 202 freeway.

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20062 N Horse Trail Drive Surprise, AZ 85374

$470,000

2 Beds

2 Baths

2,185 SqFt

Status Active

MLS # 6667234

Property Type Single Family Residence

Price Type --

***3.25% ASSUMABLE LOAN!*** Step into this impeccably maintained home nestled in the desirable 45+ community of Sun City Grand. Meticulously cared for by a single owner, this residence boasts an ideal layout featuring an expansive master bedroom that has been extended 4ft. The office/den can easily be converted into a third bedroom. Outside, enjoy the stunning landscaping and a convenient built-in grill, perfect for outdoor entertaining. Don't miss out on this opportunity to experience comfortable and stylish living in this charming community with wonderful amenities and golf courses!

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