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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4662 N 40th Street Phoenix, AZ 85018

$1,350,000
2 Beds
2 Baths
1,752 SqFt
Status Active
MLS # 6778246
Property Type Townhouse
Price Type --
Location! Location! Location! Come and see this stunning mid century townhome in the Bridgewood North 40 Community. Located in the highly sought after neighborhood of Arcadia Lite this home is move in ready. Floor to ceiling windows and pivot doors gives the floor plan the indoor/outdoor feel. Kitchen is beautifully appointed with warm wood custom cabinets with built in led lighting controlled by a state of the art Crestron system, built in Fisher and Paykel appliances with matching wood panels and stunning stone tops. Brand new hardwood floors on the stairs and throughout the second floor. Primary suite is on the second floor and it boasts a large walk-in dual head steam shower with body sprays, large soaking tub and gorgeous custom marble tiled walls. Large sliding pocket doors in both bedrooms. The second floor has a room down the hall from the primary that can be used for a closet or an in home office with a sliding pocket window and views of Camelback Mountain. Out back you have your own private pool with spill over spa. Large Ficus trees line the property and will provide additional privacy. Don't miss out on this Gem!!

7658 E Pasaro Drive Scottsdale, AZ 85266

$1,350,000
2 Beds
2.5 Baths
2,390 SqFt
Status Active
MLS # 6781306
Property Type Single Family Residence
Price Type --
Step into this luxury home in a prestigious guard-gated community of Bellasera. It features 2 bedrooms, 2.5 baths, and a bonus room that can be converted into a third bedroom. Recent updates of over $300K enhance the elegance, with 24'' Spanish porcelain tile, Brushed Oak engineered wood floors, and 5.5'' base molding. The open kitchen is a gourmet's dream, boasting a Bosch 5-burner gas cooktop, SubZero side-by-side fridge, Koehler cast iron farmhouse sink, and a wine fridge. An expanded island offers extra storage, while custom cabinetry and countertops elevate the space's sophistication. The backyard is a private oasis with a newly designed pool and spa featuring Baja shelves, a custom white tile wall, and sheer descent waterfalls. Enjoy seamless indoor-outdoor living with thoughtfully designed landscaping, low-water plants, limestone pavers, and raised garden beds. This retreat is perfect for year-round enjoyment, complete with an app-enabled pool system and built-in heaters. Additional highlights include Hunter Douglas shades, a brand new roof, dual HVAC units with room sensors, and custom California Closets in the master and office. The attention to detail in this move-in-ready home promises comfort and styledon't miss the opportunity to make it yours!

13043 N 14th Way Phoenix, AZ 85022

$1,350,000
4 Beds
4.5 Baths
4,071 SqFt
Status Active Under Contract
MLS # 6787267
Property Type Single Family Residence
Price Type --
Welcome to luxurious living in the private, gated community of the Reserve at Moonridge Golf Estates. Located on a desirable cul-de-sac, this stunning home combines modern design, elegance, and breathtaking panoramic mountain views. This custom 4,071-square-foot residence features 4 bedrooms, 4.5 baths, and an office, meticulously designed to embrace its natural surroundings and spectacular vistas. The open floor plan showcases a freshly painted interior with limestone flooring, crown molding, high ceilings, and multiple fireplaces, adding warmth to the cozy elegance. The layout includes a living room with a dual-sided fireplace shared with the formal dining area, as well as French doors leading to the spacious den/office with built-in cabinetry. The centerpiece of the home, the great room and kitchen, promote indoor-outdoor living with expansive windows that frame captivating views and open to the patio. The chef's kitchen is a standout feature, boasting recessed and pendant lighting, granite countertops, a custom island with a breakfast bar, a walk-in pantry, ample cabinetry, and stainless steel appliances. A cozy breakfast nook with a charming bay window provides the perfect spot for intimate meals. The primary suite is a true sanctuary, showcasing wood floors, a gas fireplace, a private balcony, and a lavish ensuite bathroom equipped with two vanities, a double-door walk-in shower, a jetted tub, and a spacious walk-in closet. Step outside to your personal paradise! The stunning backyard features an infinity pool, a built-in BBQ, a spa, and an extended covered patio, where you can unwind and enjoy spectacular sunset views behind the mountains. This luxurious haven promises a lifestyle like no other!

4645 N 65th Street Scottsdale, AZ 85251

$1,350,000
2 Beds
2 Baths
1,894 SqFt
Status Active
MLS # 6775663
Property Type Townhouse
Price Type --
EXCLUSIVE LOCATION: 2 BR, 2 Bath, 2-Car Garage Villa on the 5th tee of the Phoenician Golf Course. Best Golf course/pond/nature views in community with large patio. Features: 24'' Travertine Stone throughout, transitioning to a spacious back patio; Natural Light-Filled Spaces from numerous clerestory windows and skylights; Vaulted Wood Beam Ceilings; Circular Dining Room with vaulted wood beamed ceiling and bay windows; Split Bedroom Plan for complete privacy; Large Primary Suite with patio access. Walk or ride to nearby Scottsdale Fashion Square, Old Town Scottsdale, and Scottsdale Waterfront, and enjoy all the amenities Scottsdale is known for. Plus, a short 15-minute drive to Sky Harbor Airport. Ideal as a year-round retreat or a lock-and-leave second home. Tucked near the base of Camelback Mountain, Phoenician East is a private residential community of luxury villas located across the street from the amenities of The Phoenician® Resort and near the boutiques, restaurants, and galleries of Old Town Scottsdale and Scottsdale Fashion Square. This luxury lifestyle is perfect for full time or part time residents.

22448 N 77th Way Scottsdale, AZ 85255

$1,350,000
5 Beds
3 Baths
3,722 SqFt
Status Active
MLS # 6634506
Property Type Single Family Residence
Price Type --
WELCOME HOME TO THIS STUNNING IMMACULATE HOME IN SONORAN HILLS! THIS AMAZING HOME SITS ON A PREMIUM LOT BACKING TO NATURAL OPEN SPACE SHOWCASING THE BEAUTY OF THE SONORAN DESERT. ENTER THROUGH THE GATED PRIVATE COURTYARD WITH 5 SPACIOUS BEDROOMS, 3 BATHROOMS. OVERSIZED WINDOWS, HIGH CEILINGS LEND A VERY OPEN AND SPACIOUS ATMOSPHERE. THE BACKYARD IS GREAT FOR ENTERTAINING! HEATED POOL WITH WATERFALL. BBQ AREA. GOURMET KITCHEN FEATURES ISLAND WITH GAS COOKTOP, GRANITE COUNTERS, STAINLESS STEEL DOUBLE OVENS. THE MASTER SUITE IS DESIGNED WITH R&R IN MIND. A MUST SEE! FURNISHINGS AVAILABLE FOR SALE. HAVE A LOOK AT THE RENDERING PROVIDED TO MAXIMIZE THE OUTDOOR SPACE. THE FIFTH BEDROOM COULD BE CONVERTED TO A 3RD GARAGE.

17370 W Wildwood Street Surprise, AZ 85388

$1,350,000
3 Beds
3 Baths
2,813 SqFt
Status Active
MLS # 6672082
Property Type Single Family Residence
Price Type --
One of the BEST PREMIUM GOLF COURSE LOT, This full 3 bedroom plus office Home is ready to move-in. Home has $550k+ in upgrades, Home has a Wine Closet, 12'' Patio Doors full Landscape to the Max, Includes all Appliances. Enjoy Resort Style Living at it's Finest at Sterling Grove Golf & Country Club in the 55+ Section of the Community. Looking for a Home that has everything with Gorgeous Mountain Views, Amazing Sunsets, Beautiful Golf Greens, A great custom Heated Pool and Spa to enjoy year round., Garage has EV outlet, epoxy floors, wood floors entire house

10622 E Tamarisk Way Scottsdale, AZ 85262

$1,350,000
2 Beds
2.5 Baths
2,922 SqFt
Status Active
MLS # 6751250
Property Type Single Family Residence
Price Type --
Welcome to this charming home nestled within the prestigious guarded gates of Desert Mountain, located in the serene village of Cochise Ridge. This residence offers two spacious primary ensuite bedrooms, perfect for comfort and privacy, along with a versatile central den/office. The updated kitchen is a chef's delight, featuring stainless steel appliances and a cozy breakfast nook that overlooks the inviting front courtyard. Step outside to the expansive wrap-around patio, where you'll find a spa, built-in BBQ, and multiple seating areas, all designed to enjoy the breathtaking views of Pinnacle Peak, McDowell Mountains, Continental Mountains, and the twinkling city lights in the distance. This home is a perfect retreat, whether you're seeking a lock-and-leave option or a full-time residence in one of Scottsdale's most sought-after communities.

5442 E Saint John Road Scottsdale, AZ 85254

$1,350,000
5 Beds
4 Baths
3,845 SqFt
Status Active
MLS # 6719935
Property Type Single Family Residence
Price Type --
Major Price Improvement on this profitable STR Investment or create the perfect primary residence in a highly desirable neighborhood. Updated TW Lewis Home in Arabian Crest! There's no HOA, and it's conveniently located near Copper Canyon Elementary located in the popular 85254 ''Magic Zip code.'' This property is within 10 minutes from TPC Scottsdale, The Westin Kierland Golf Club, the Mayo Clinic Hospital, Kierland Commons, Scottsdale Quarter, and Desert Ridge Marketplace. The home has a downstairs primary suite with direct access to the patio and pool area. The large owner's bathroom includes a separate tub and shower, and plenty of closet space. The big family room has high ceilings, a gas fireplace, patio access, and an open layout connecting to the kitchen and breakfast room. The kitchen features beautiful Bali veined Calacutta quartz countertops with a full backsplash and Samsung black-stainless appliances, including a double wall oven. Upstairs, there's a very large bedroom with its own bathroom, accessible through double doors, which can be used as a bedroom suite or a second family room, plus three additional bedrooms. The home has plantation shutters throughout. The well-kept backyard features lush landscaping, newer turf, and a pebble-finished pool, all perfectly oriented with north/south exposure.

2342 N Lemon Circle Mesa, AZ 85215

$1,350,000
7 Beds
4 Baths
3,807 SqFt
Status Active
MLS # 6715925
Property Type Single Family Residence
Price Type --
BACK ON THE MARKET with over $60,000 worth in upgrades/improvements!!! NEW resurfaced pool, NEW roof on main house and gazebo, NEW AC!!! This is a move in ready and gorgeous custom home located in the highly sought after Spyglass Estates! On almost a full acre this property is one of a kind. Lush private backyard on flood irrigation with a heated pool, putting green, ramada, RV pad with all hook-ups and a variety of citrus trees. The gourmet kitchen is open and bright and offers gorgeous granite counters, tons of custom built cabinets and high end appliances. Split floorplan with the primary suite and 3 bedrooms on one side and a private guest retreat on the other side. Surround sound throughout the house! And then the hidden gem of the property...the newly built casita with a completely private and separate backyard. Custom attic space above the garage with stable flooring provides quite a bit of additional storage. All sheds on property convey as well. CAT 6 ethernet wiring throughout main house and casita. Most furniture and game tables available on separate bill of sale. Come see this one of a kind Mesa gem for yourselves!

16623 E Emerald Drive Fountain Hills, AZ 85268

$1,350,000
4 Beds
3 Baths
2,749 SqFt
Status Active Under Contract
MLS # 6752009
Property Type Single Family Residence
Price Type --
Contemporary Southwest Retreat sitting on 1.013 acre offers sweeping views of Redrock Mtn, the Superstitions looking down a peaceful arroyo. Gracious courtyard entry welcomes guests and opens to an elegant great room. Gorgeously updated features vaulted ceilings, walls of massive windows with tons of space for friends and family. Chef's kitchen is designed for a crowd, offers granite island w/ breakfast seating, top-of-the-line appliances, tons of cabinetry, is dine-in, and allows the chef to be part of the celebration. Space for a dining room. Large primary suite plus 2 additional bedrooms, which one is ensuite, plus a den or 4th bedroom. Nice big 3-car garage with a separated bay that can also be a ''private space.'' Heated pool and Spa!

8982 E Rusty Spur Place Scottsdale, AZ 85255

$1,350,000
3 Beds
2 Baths
2,062 SqFt
Status Active
MLS # 6733023
Property Type Single Family Residence
Price Type --
What an incredible opportunity to live in one of the most desired master planned communities in the entire valley of the sun, where active lifestyles meet modern day convenience. Welcome to DC Ranch, a magnificent 4,400 acre upscale master planned community consisting of 4 incredible villages featuring 26 unique neighborhoods with over 28,000 homes and 7000 plus DC Ranch residents. DC Ranch offers a diverse collection of architecture, resident amenities and outdoor experiences including 47 parks and over 50 miles of lush scenic paths and trails that safely guide you through this incredible community. The McDowell Sonoran Preserve surrounds much of DC Ranch and is considered by many residents as the ''backyard'' to the community. The McDowell Sonoran Preserve is the *(Click More)* nation's largest urban land preserve, encompassing 36,000 acres, one-third of the City of Scottsdale totaling 57 square miles. Enjoy hiking and biking? You'll enjoy exhilarating hikes, along with miles and miles of mountain and road biking with endless opportunities to truly enjoy the beautiful Sonoran Desert. The scenic paths and tranquil trails are truly breathtaking! They safely and conveniently connect neighborhoods and guide residents through a collection of exceptional interactive and scenic walkways linking the neighborhoods to the incredible parks, enchanting gardens, grassy play areas, playgrounds, wildlife viewpoints, community pools, recreation areas, award winning schools and Market Street! Market Street is right around the corner, just a minutes' drive, a short walk or bike ride. Market Street at DC Ranch is an upscale, mixed-use lifestyle center nestled within the DC Ranch community. Spanning approximately 37 acres, this vibrant destination boasts a main street theme, characterized by 15 architecturally unique buildings. Visitors can explore a diverse array of distinctive shops and boutiques, savor culinary delights at various restaurants, and enjoy neighborhood conveniences along with live music, all within this charming setting. Additionally, Market Street features office spaces, making it an ideal location for both leisure and business activities. A few of the amazing eateries and numerous local hot spots include Vic & Ola's, Flemings, Grimaldi's, All American Modern Sports Grill, Jalapeno Inferno, Eggstacy, Liberty Station, The Living Room, and Pescada. Residents of The DC Ranch have access to two recreation centers, offering year-round activities to get fit, stay fit and enjoy a healthy lifestyle. The Homestead Community Center and the Desert Camp Community Center blend nicely with community parks providing a ton of amenities including vine covered ramadas, BBQ grills, fire pits, seat walls, shade canopies, adventure playground, grassy play areas perfect for picnics, a heated pool open year-round, splash pad and lighted tennis, pickleball, softball, baseball and basketball courts. The Homestead Playhouse community theatre includes Indoor and outdoor event facilities complete with a commercial kitchen. The opportunities to have fun in the parks, playgrounds and open spaces are truly endless. The perfect place for an evening stroll, bike ride, hike or jog with your friends, family and neighbors. DC Ranch offers a wide variety of classes to help you meet your fitness goals and help you connect with other residents including all levels of yoga, strength and balance, health and wellness and aqua fitness classes. Just a short 30 minute drive to Barlett Lake Recreation Reservoir. It's an outdoor enthusiast's dream destination for action and adventure. With more than 2,815 acres of open water and beautiful, unblemished lush desert landscape. Enjoy kayaking, fishing, scuba diving, camping, stargazing and some awesome off roading. Catch a D-backs spring training game, the stadium is a quick and easy 20 minute drive. DC Ranch is perfectly placed in North Scottsdale with quick and convenient access to the loop 101 freeway. Just 15 minutes to Scottsdale Airpark and 30 minutes to Sky Harbor and downtown Phoenix. This home is carefully set on one of the most amazing lots in the DC Ranch Villas! It's private, with only one neighbor. It's perfect, with incredible orientation for mountain views with no other homes directly in front or behind you. It's oversized, with a big backyard and side yard built for entertaining and surrounded with spectacular scenery and gorgeous views of the McDowell Mountains. This popular single level split floor plan is versatile and currently set up as a 2 bedroom with the Master Suite split to one side and the guest bedroom and den, office or bonus room on the other side. The inviting courtyard welcomes you to a dramatic entry that's light, bright and open featuring soaring ceilings with gorgeous hand scraped Hickory wood flooring, beautiful solid wood Alder doors, rounded corners, art niches, custom window covers, ceiling fans, designer two tone paint and upgraded lighting, hardware and fixtures with decorator touches throughout. The architectural detail is sincerely remarkable and incorporates attention to detail along with wonderful lighting and beautiful lines that create a modern and warm feel and flow. The great room is expansive, cheery, airy and warm with abundant natural lighting, soaring ceilings, a magnificent marble fireplace, custom built in media niche all surrounded by walls of scenic glass inviting the outside in creating an incredible extension of living space to this fabulous floor plan.Like to cook? Enjoy preparing lavish meals and memories in your wonderful open concept chefs kitchen featuring upgraded raised panel maple cabinets with gorgeous beveled edge granite slab countertops surrounded by a decorative backsplash. The kitchen includes a huge breakfast bar, double under mount sink, nice walk-in pantry, scenic picture windows and upgraded appliances complete with a KitchenAid stainless steel refrigerator, 5 burner gas cook top, custom stainless vent hood and built in microwave. The kitchen features a ton of great counter and cabinet space along with a wonderful private patio featuring a Dutch door that allows you to enjoy Arizona's wonderful weather inviting in a cool breeze and some AZ sunshine into your home. Formal dining offers a wonderful seating area showcasing floor to ceiling windows overlooking the scenic natural wash area full of lush desert plantings and stunning views of the McDowell Mountain Preserve. The dining area features an impressive chandelier and offers plenty of space to accommodate large dinner parties as well as intimate gatherings for a wonderful dining experience. Enjoy good food, great friends and memorable dinner parties. You will love this floor plan, it is spacious, yet efficient and combines quality and elegance, perfect for entertaining or a quiet night at home. Just off the hallway is a custom built media niche, perfect for a home office, hobby area or just surfing on the web. It includes rich maple cabinets with ample storage and natural wood countertops, a built-in desk and scenic picture window of the courtyard. The secondary bedroom is good sized with oil rubbed Hickory flooring, nice closet space, a remote ceiling fan, custom window covers and abundant natural lighting. The den, office or bonus room is truly a flex space, just perfect for that extra room or space that you're always looking for. It includes double entry doors, a private patio with mountain views, gorgeous Hickory wood floors, remote ceiling fan and custom built-in Alder cabinets featuring a work station with additional storage, display shelving and a built-in Murphy bed for an additional overnight guest, if ever needed. The hall bath has been meticulously remodeled with beautiful marble flooring, solid maple hardwood cabinetry, upgraded undermount sink and gorgeous marble slab countertops. It includes upgraded lighting, hardware and fixtures and a large and oversized marble finished shower with glass enclosure. The laundry room is perfectly placed within the floor plan for convenience and includes custom cabinets, rich marble flooring and a farmhouse sink complete with an decorative marble backsplash. The Seller is also including the existing front load washer and dryer. Now relax and retreat to the spacious master suite complete with high plate ceilings, warm wood Hickory flooring, custom window covers, remote ceiling fan, scenic mountain view windows and glass doors leading to your private patio for those late night dips in the hot tub. The spa inspired master bath update is fabulous including gorgeous maple cabinets, elegant marble flooring, an oversized double vanity with makeup station, dual sinks and a large wall to wall mirror. Enjoy the soothing garden soaking tub, walk-in closet, private toilet room and upgraded lighting, hardware and fixtures. The expansive marble shower features a rainbird head, shaving bench and custom glass enclosure. Want to get away...Grab a good book and glass of wine and head out to the cozy covered patio and enjoy Arizona's outdoor living at its finest. This backyard is ABSOLUTELY AMAZING and laid out perfectly for efficiency, relaxation, fun and entertaining. Turn on the water feature and step inside to soothing spa and let the stress just melt away. This is truly the place to relax, exhale and unwind while soaking up the incredible Arizona weather and the mesmerizing mountain views. Here you'll spend countless hours enjoying the classic southwest Saltillo tiled patio surrounded by towering trees, flowering bushes and shrubs all secured by rod iron view fencing. The patio includes a nice BBQ island along with ample seating areas for entertaining and family gatherings. The indoor & outdoor living spaces blend seamlessly to create an entertainment masterpiece perfect for large parties, intimate gatherings and outdoor living. Truly an entertainer's paradise and absolutely breathtaking! Both the front and backyard landscape watering systems are on a timer with auto watering. The home includes a soft water and R/O drinking water and security system. The spacious 2 car garage includes a garage keypad for convenient access. All of this and award winning DC Ranch schools, two world class country clubs and multiple recreation centers. DC Ranch is truly the number one the place to be for active lifestyles! Looking for a peaceful and tranquil place to unwind, relax, exhale and escape the daily pressures of our daily lives, this is it! This quality crafted move in ready home includes an impeccable selection of luxurious appointments and fine finishes that blend quality and attention to detail throughout this spectacular one of a kind opportunity. Better Hurry on this one!

18223 W Rancho Court Litchfield Park, AZ 85340

$1,350,000
5 Beds
3.5 Baths
3,244 SqFt
Status Active
MLS # 6740239
Property Type Single Family Residence
Price Type --
Stunning Home with Modern Luxuries and Entertainer's Dream Spaces! Discover this exquisite 5 bedroom, 3.5 bath home nestled in the beautiful gated community of Russell Ranch, on a premium cul-de-sac lot. The property features an oversized 3 car garage, perfect for all your storage needs. Enjoy the flexibility of RV or casita potential with pre-installed plumbing. Inside, custom shutters adorn every window, enhancing both privacy and elegance. The expansive great room offers a perfect setting for gatherings and holiday celebrations. The home also boasts impressive front & back patios, ideal for entertaining or simply relaxing. Front & back landscape lighting, with customizable color options, adds a touch of sophistication to your outdoor spaces. Don't miss out on this exceptional property.

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