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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28524 N 102nd Way Scottsdale, AZ 85262

$635,000
2 Beds
2.5 Baths
1,711 SqFt
Status Active
MLS # 6702531
Property Type Townhouse
Price Type --
This 2br/2.5ba unit is located in the resort community of Troon North. The open floor plan includes a great room w/ high ceilings, updated kitchen and a cozy gas fireplace. Add'l features include brand new roof, appliances, hot water heater, and HVAC. Convenient direct entry 2-car garage. Upstairs you will find two primary suites with walk-in closets, dual sinks and private showers. Both rooms feature balconies for enjoying views of the desert landscape and Pinnacle Peak. Low property taxes and HOA dues make this easy desert living! Conveniently located near the Troon Clubhouse and Sonoran Mountain Preserve trail system.

17603 N Lindgren Avenue Sun City, AZ 85373

$635,000
2 Beds
2 Baths
1,999 SqFt
Status Active
MLS # 6712021
Property Type Single Family Residence
Price Type --
Beautifully Remodeled including the windows. Open Floor Plan, Golf Course Property With Pool. Kitchen Includes Newer Upgraded Custom, Hickory Cabinets, Stainless Steel Appliances and Newer Wood Tile Flooring. Walk-in Closets In Both Bedrooms. Fully Remodeled Guest Bathroom. Air Cooled Laundry Room/pantry Off Garage With Extra Storage, Bonus Den/office off Main Bedroom. and there are 2 walk-in closets in this room. The main bedroom has a door to the outside. The Pool is Solar Heated with an additional heating feature. The Pool has a pebble-tec type coating.. There is a lovely Waterfall Feature. The backyard landscape has Astro Turf. The front courtyard is fully fenced for a cozy retreat. Come see this lovely cheerful house, just waiting For You to Call it Home! Owner/Agent

302 W Oak Avenue Unit 1 Flagstaff, AZ 86001

$635,000
3 Beds
2.5 Baths
1,213 SqFt
Status Active
MLS # 6730466
Property Type Single Family Residence
Price Type --
TO BE BUILT...Welcome to modern living in the heart of Flagstaff - a collection of contemporary detached homes that redefine luxury and convenience. Nestled against the backdrop of the stunning mountains, step into a world where architectural brilliance meets nature's beauty. The community boasts a sleek and contemporary design that seamlessly integrates with the natural surroundings. Plentiful glass allows ample natural light to flood the interiors, creating a harmonious blend of indoor and outdoor living. Clean lines, high ceilings, and thoughtfully designed spaces provide an open and airy atmosphere making each home a sanctuary of modern sophistication. Wake up to the awe-inspiring sight of the mountains right outside your window (Select Lots Only). Whether you're sipping your morning coffee on the patio or enjoying a quiet evening indoors, the breathtaking scenery is a constant companion, creating a sense of tranquility and connection with nature. Embrace the convenience of city living without sacrificing the serenity of a mountain retreat. The community is ideally located within a short distance to downtown Flagstaff with easy access to the Urban Trail System (FUTS), allowing residents easy access to vibrant shops, eclectic restaurants, cultural attractions, and lively entertainment. Enjoy the best of both worlds - the bustling energy of city life and the peaceful seclusion of your private mountain haven. Step inside and experience a harmonious blend of form and function. The interiors are adorned with high-end finishes, contemporary fixtures, and premium materials. The open-concept layouts create a seamless flow between living, dining, and kitchen areas, perfect for both entertaining guests and cozy family nights. Invest in more than just a home - invest in a lifestyle. These bungalows offer not just a residence but a secure investment in the future. The combination of prime location, modern design, and proximity to downtown Flagstaff, Flagstaff Medical Center, Flagstaff Elks Lodge, Jay Lively Ice Arena, Buffalo Park, Basha's Grocery Store, and many schools ensures a high standard of living and potential for long-term value appreciation. There are a total of 13 available lots, any of the three attached plans will work on any of the available lots.

14027 N 32nd Street Phoenix, AZ 85032

$635,000
4 Beds
3.5 Baths
2,197 SqFt
Status Active
MLS # 6742734
Property Type Single Family Residence
Price Type --
Welcome to this charming Phoenix home! With its inviting curb appeal, RV gate, and delightful fountain, you'll feel right at home from the start. Inside, you'll find stylish wood-look floors and a soothing color palette in a spacious great room featuring a chic chandelier and cozy fireplace. The pristine white kitchen boasts shaker cabinets, stainless steel appliances, a beautiful tile backsplash, quartz counters, and a breakfast bar island. The romantic primary suite offers a walk-in closet and a private bath. Relax on the covered patio with mountain views and entertain in the expansive backyard

15571 W Prairie Dunes Drive Surprise, AZ 85374

$635,000 - 2Br/3Ba -  for Sale in Sun City Grand The Point, Surprise
New
$635,000
2 Beds
2.5 Baths
2,290 SqFt
Status Active
MLS # 6789147
Property Type Single Family Residence
Price Type --
WOW!!! Nestled in the heart of the desirable 55+ community of Sun City Grand, this stunning corner lot gem offers unparalleled charm and comfort. From the moment you arrive, you'll be greeted by a desert landscaping, a welcoming courtyard, stone accents, and a 2-car garage with a dedicated golf cart bay. Step inside to discover sleek tile flooring, pre-wired surround sound, and a cozy great room with custom wall niches and a fireplace - perfect for entertaining. The formal dining area is ideal for hosting festive gatherings. The chef's kitchen boasts stainless steel appliances, wall ovens, granite counters and backsplash, ample white cabinetry, a center island, and a peninsula with a breakfast bar... Retreat to the luxurious primary suite featuring a sitting area, an ensuite with dual sinks, a make-up vanity, a soaking tub, and a spacious walk-in closet. The second bedroom also includes a walk-in closet, and the den offers the perfect space for a home office or media room. Outside, the backyard oasis awaits with a covered patio, a serene water feature, and a refreshing pool - your private retreat for relaxation. Don't miss this incredible opportunity to live the Sun City Grand lifestyle!

15530 N 78th Avenue Peoria, AZ 85382

$635,000
5 Beds
3 Baths
3,026 SqFt
Status Active
MLS # 6769251
Property Type Single Family Residence
Price Type --
Seller may consider buyer concessions if made in an offer. Welcome to your dream home, featuring many desirable attributes. The neutral color scheme and fresh interior paint create a calming ambiance. The kitchen is a cook's delight with a central island. The primary bedroom includes a walk-in closet and an en-suite bathroom with double sinks, a separate tub, and a shower. Enjoy cozy evenings by the fireplace. The fenced backyard is perfect for entertaining, with a private in-ground pool, a covered patio, and a storage shed. Our lawn is adorned with low maintenance landscaping, allowing you to enjoy the aesthetics without the additional work. This home offers comfort, convenience, and style in equal measure.

26233 N 133rd Avenue Peoria, AZ 85383

$635,000
4 Beds
3.5 Baths
3,005 SqFt
Status Active
MLS # 6776183
Property Type Single Family Residence
Price Type --
Built in 2022! 4 bed 3.5 bath home w/ a loft & a 3 car garage located in Rancho Cabrillo community in North Peoria. Paver driveway & double side gate. Wood-like tile in the main traffic areas. The kitchen is open to the family room & includes a huge island, quartz counter tops, gas range, premium stainless steel appliances & a pantry. The primary suite is over-sized & the primary bathroom includes a huge shower, dual sinks, quartz counters & a large walk-in closet. Backyard is a blank canvas, plenty of room for a pool. Open greenspace across the street & beautiful mountain view from the backyard! Walking distance to A+ schools & parks.

4512 W Stoneman Drive Anthem, AZ 85086

$635,000
5 Beds
3 Baths
2,822 SqFt
Status Active
MLS # 6775656
Property Type Single Family Residence
Price Type --
**Stunning 5-Bedroom Home with Solar and Pool!** Welcome to your dream home! This beautifully recently painted residence boasts 5 spacious bedrooms and 3 full baths, offering plenty of room for everyone. Enjoy the convenience of two new AC units, ensuring year-round comfort, and a central vacuum system for easy cleaning. Step outside to your private oasis featuring a refreshing pool, perfect for relaxing and entertaining. The excellent layout includes a loft that can be customized to fit your lifestyle—think home office, playroom, or media space! Located within walking distance to a highly-rated middle school and a fantastic park, this home combines tranquility with accessibility. Plus, with solar panels, say goodbye to high APS bills and hello to energy savings!

16420 N Thompson Peak Parkway Unit 1009 Scottsdale, AZ 85260

$635,000
2 Beds
2.5 Baths
1,640 SqFt
Status Active
MLS # 6783419
Property Type Townhouse
Price Type --
Prime elevated location within the complex, this 2-story end-unit townhome boasts picturesque, views of lush landscaping. An inviting great room, complete with a cozy fireplace, flows effortlessly into the dining area & sliding doors open to a private patio, ideal for outdoor relaxation. On the lower level, a versatile office space can double as an additional sleeping area. The primary bedroom offers a private balcony overlooking the beautifully curated desert landscape, while an en-suite guest room provides comfort and privacy. The community offers exceptional amenities, including a well-maintained pool, spa, & workout facility, along with access to the renowned McDowell Mountain Ranch community amenities. Cachet is conveniently located close to the 101 and popular dining spots.

10736 W Paso Trail Peoria, AZ 85383

$635,000
3 Beds
2 Baths
2,190 SqFt
Status Active
MLS # 6781741
Property Type Single Family Residence
Price Type --
Impeccable home In great area. All new plank tile flooring installed in 2023 - Large walk in master shower remodeled with tile in 2023 - Great room concept with island kitchen and granite counter tops - Build in upgraded stainless steel appliances - Stainless steel refrigerator - 36'' gas cooktop - 42'' staggered cabinets - Double door exit into back yard - Split floor plan - Large master suite with double sinks - walk in shower - private toilet room - very large walk in closet - Large laundry room with extra cabinets and laundry sink - Paver drive way in front and paver patio in back yard - Backs up to common area with view fencing

13325 W Luke Avenue Litchfield Park, AZ 85340

$635,000
3 Beds
2.5 Baths
2,432 SqFt
Status Active
MLS # 6782771
Property Type Single Family Residence
Price Type --
This home in the gated Dreaming Summit community of Litchfield Park is move-in ready! The property features 3 bedrooms, 2.5 baths, a separate den, and an inviting front courtyard. The main living area boasts upgraded plank flooring, fresh paint, and plantation shutters. The stylish kitchen includes recessed lighting, ample cabinetry, stainless steel appliances, a stunning upgraded island with breakfast bar, and plenty of counter space. The primary suite has a private exit, luxurious bath with dual sinks, a tub, shower, and walk-in closet. The large backyard offers an extended patio, built-in gas BBQ, private pool, and double gate—perfect for Arizona living! Located near Luke AFB. Just 7 miles from Westgate entertainment district, State Farm Stadium, and 4 Spring training stadium

1612 E Julie Drive Tempe, AZ 85283

$635,000
4 Beds
2 Baths
2,204 SqFt
Status Active
MLS # 6784114
Property Type Single Family Residence
Price Type --
This beautifully updated home, in the heart of Tempe welcomes you with wood-look tile flooring throughout. Updates include removal of popcorn ceiling, installation of flush mount lighting in formal and informal living and dining areas, updated bathrooms and bright, open, updated, kitchen. The primary suite is spacious and boasts a bath with a separate vanity/dressing area, as well as a private exit to the backyard. The den/office is crafted with double French doors for privacy. The no-maintenance, spacious, backyard features a beautiful, sparkling, pool, as well as plenty of space for playing or lounging. New windows & electrical panel 2021, new HVAC 2022. All of this in a spectacular location convenient to shopping, dining, golf, ASU, the Loop 101, the SR 60, I-10 and the Loop 202!

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