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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4602 E Monte Way Phoenix, AZ 85044

$589,900

3 Beds

2 Baths

1,735 SqFt

Status Active

MLS # 6682751

Property Type Townhouse

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Price Reduction!!! Excellent Golf Course Lot has the views but far enough away to be private & very few if any golf balls*Corner lot*Mountain Views*Home is a block away from South Mtn Park*Private In Ground Heated Spa*Multiple Patio Areas*Wood Shutters*Tile Floors Through-out*Vaulted Ceilings*Newer Heat Pump*Split Bdrm Plan*3rd Bdrm Can be Den or Bdrm*Nicely landscaped*Community pools & spas*

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20038 N 21st Street Phoenix, AZ 85024

$589,900

4 Beds

2 Baths

1,784 SqFt

Status Active

MLS # 6687430

Property Type Single Family Residence

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Come see this beautiful 4 bedroom, single level home with a pool in a quiet hidden alcove neighborhood in north Phoenix. This home features: plank tile flooring, quartz countertops in the kitchen, a 3 car garage, NO HOA, full length rear covered patio, pebble tec swimming pool, ceiling fans throughout, newer windows, updated fixtures throughout, dual sinks in both bathrooms, a nice open & flowing floor plan, vaulted ceilings, & brand new hot water tank (2024). This neighborhood is extremely quiet, with gorgeous mountain views, easy access to the 101, & has a lot of great restaurants and shopping close by (Costco is up the street, multiple public parks, Desert Ridge shopping & restaurants). Also close by is the Arrowhead Mall area, Westgate shopping & Arizona Cardinals stadium. NO HOA!!

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20830 N 98th Avenue Peoria, AZ 85382

$589,900

4 Beds

2 Baths

1,828 SqFt

Status Active

MLS # 6755466

Property Type Single Family Residence

Price Type --

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298 W Tulsa Street Chandler, AZ 85225

$589,900

5 Beds

3 Baths

1,626 SqFt

Status Active

MLS # 6782769

Property Type Single Family Residence

Price Type --

Fully remodeled and permitted home redone from studs, all new underground plumbing, new electrical, new gas lines, new meter, new flooring, new showers, bathrooms tile, new kitchen white shaker cabinets and quartz countertops, guest house features kitchen and bathroom and laundry room, studio apartment can use as a rental and or mother in law suite, this home features a nice backyard with RV gate no HOA, 2 carport, and new ac's and new roof, all new insides paint drywall and many more. Come see this 4 bed 2 bath home and casita before its gone!

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11667 W Luxton Lane Avondale, AZ 85323

$589,900

4 Beds

3.5 Baths

2,937 SqFt

Status Active Under Contract

MLS # 6741312

Property Type Single Family Residence

Price Type --

Explore Alamar! A community where neighbors become friends & friends become family! Downstairs you will find 2 primary bdrms w/walk in closets & private baths. Main primary has generous custom closet space. Flex room w/built in desks for everything from homework to zoom meetings! Chef's kitchen features built in gas oven, 36'' cooktop & generous center island. The view through the 16' glass doors brings you a yard w/entertaining in mind. 2 gas stubs to add a BBQ & fire feature. Solar has offered savings on the electricity. Alamar features well thought out parks for grilling & playing-4 around this home alone. Enjoy the community pool & BBQ ramada at Haymoon Park. Head to Alamar park for pickleball, fishing, outdoor exercise area, splash pad & 2 dog parks. Come live in ALAMAR!

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12826 N 29th Street Phoenix, AZ 85032

$589,900

3 Beds

2 Baths

1,545 SqFt

Status Active

MLS # 6715302

Property Type Single Family Residence

Price Type --

Welcome to a meticulously renovated sprawling ranch home where no detail has been overlooked. This home has undergone a comprehensive transformation! Upon entry, you're greeted by new waterproof flooring that extends throughout. Natural light floods the interior through newly installed energy efficient dual pane windows. New custom windows & coverings combined style w/ functionality. The fully remodeled kitchen, featuring new custom Thomasville shaker cabinets, Quartz countertops & designer backsplash. Equipped w/ top-of-the-line LG appliances including a fridge, stove, dishwasher, & in-drawer microwave. The primary bath has been completely reimagined to offer a luxurious retreat, while an additional bath off the hallway is also fully renovated. Private pool just in time for summer!

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13333 W Chapala Court Sun City West, AZ 85375

$589,900

3 Beds

2 Baths

2,143 SqFt

Status Active Under Contract

MLS # 6764055

Property Type Single Family Residence

Price Type --

Popular Encanto Model with foyer and large great room. Beautiful granite and stainless steel kitchen. 3'' wood shutters throughout. Extended den with closet and door. Extended depth garage. Oversized fully landscaped and irrigated lot. Corte Bella offers a relaxed, luxury feel including newly renovated restaurant, complete athletic facility including day spa and huge community pool. Come live the Corte Bella lifestyle!

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4941 Saddle Blanket Circle Happy Jack, AZ 86024

$589,900

3 Beds

2 Baths

1,531 SqFt

Status Active

MLS # 6682510

Property Type Single Family Residence

Price Type --

Are you ready to escape the heat and bring your horses with? This is the home for you. Almost an acre and a half with great corrals, tack shed ,horse wash area, and so much more. This beautiful log sided cabin/home is decorated for the horse lover and comes completely furnished. It has been taken care of and is filled with love , perfect for a permanent home or weekend or summer home. Get your horses out of the heat, take them for some amazing forest rides with our great riding group up here. This is a must see ''mini ranch''. 3 bedroom/2bath cozy but with enough room for your guests. Come see it now. Sit in your front yard and watch the elk graze on the beautiful grass or sit in the back barbuque area and watch as your horses play.in the 60 x 120' ft corrals. Must see in person.

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6812 W Firebird Drive Glendale, AZ 85308

$589,900

4 Beds

3 Baths

2,328 SqFt

Status Active

MLS # 6753607

Property Type Single Family Residence

Price Type --

Welcome to your dream home in the coveted Arrowhead Ranch - Sierra Verde community! This stunning property offers 4 bedrooms + 3 bathrooms, all situated on a desirable corner lot that ensures added privacy. Step inside, you'll be greeted by soaring vaulted ceilings + a well-designed N/S exposure that bathes the home in natural light. Beautiful luxury vinyl flooring throughout (no carpet). The chef's kitchen boasts updated cabinets, ample counter space, + an ideal layout for entertaining guests. The primary bedroom offers high ceilings + a luxurious ensuite bath w/ 2 walk-in closets, separate soaking tub/shower, + dual sinks. The backyard is a private oasis with an extended covered patio, mature trees, and a grassy area. Enjoy lakes, trails, parks, dining, and shopping just steps away!

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2547 E Corrine Drive Phoenix, AZ 85032

$589,600

4 Beds

2 Baths

1,700 SqFt

Status Active

MLS # 6765202

Property Type Single Family Residence

Price Type --

Price reduced, buy while the market favors you! Floorplan has been opened up and feels like a modern great room layout inside mixed with the charm and uniqueness of a non HOA neighborhood close to the 51, mountain preserve and more. The remodel was done in 2020 with new flooring and layout changes. Kitchen boasts Stainless steel appliances, recessed lighting, granite countertops 4 bedrooms give you options for either a guest room or office. Out back there is a covered patio, relaxing pool, real grass, and the RV gate access via the side of the lot. The 2 car garage and paver slab parking add to the appeal if you have lots of cars or other toys. 30 amp car charger/RV plug for charging EV's. Located close to the 51, PMP and minutes from shopping and nightlife.

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15935 W Montana De Oro Drive Surprise, AZ 85387

$589,595

4 Beds

3 Baths

2,165 SqFt

Status Active

MLS # 6764951

Property Type Single Family Residence

Price Type --

READY FOR IMMEDIATE OCCUPANCY!! Brand New Home! This 4br, 3ba., 3 car garage home has all the designer touches. Truly move in ready. Features include, 2'' blinds on all the windows, SS appliances,, upgraded kitchen cabinets, deco tile back splash, Plank floor tile, fans in all the rooms, 16' atrium doors, front yard landscaping plus so many more exciting included features - 10' ceilings, 8' doors, granite tops in the kitchen, gourmet kitchen, garage service door, tank less water heater, and so much more.

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43131 N 11th Avenue New River, AZ 85087

$589,500

3 Beds

2 Baths

1,818 SqFt

Status Active

MLS # 6769538

Property Type Single Family Residence

Price Type --

Welcome to your dream home! This newly built 2024 single-level home offers modern design, energy efficiency, and tranquil desert living. Featuring 3 bedrooms and 2 bathrooms, the open layout includes a gourmet kitchen with granite countertops, a large island, and stainless steel appliances, flowing into a spacious living area with sliding doors to a large back porch. A high-end water filtration system filters out toxins, including arsenic, and provides soft water throughout the home. Custom sun screens on every window enhance energy efficiency year-round.

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