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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2792 Kona Trail Flagstaff, AZ 86005

$580,000
3 Beds
2 Baths
1,300 SqFt
Status Active Under Contract
MLS # 6756366
Property Type Single Family Residence
Price Type --
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1543 E Oakland Street Chandler, AZ 85225

$580,000
3 Beds
2 Baths
2,060 SqFt
Status Active Under Contract
MLS # 6769326
Property Type Single Family Residence
Price Type --
Immaculate Single-Level Home with Pool—No HOA! Don't miss this stunning 3-bed, 2-bath home, complete w/a spacious 3-car garage, Conveniently located near shopping & schools, this beautifully updated property boasts an array of features that make it feel just like new. Step inside to discover tile & wood like flooring T/O. The kitchen features gorgeous granite countertops, refinished cabinets including a new stainless steel gas stove and a large pantry. The living room showcases a tiled fireplace & elegant wood shutters, creating a warm and inviting atmosphere. The bathrooms have been beautifully remodeled, featuring wood-look tile floors & a stunning walk-in shower in the primary bath. Recent updates include a brand-new heater and pump for the sparkling PebbleTec pool and spa, Enjoy the beautifully landscaped, private backyard with a heated pool and spa, perfect for entertaining or relaxing and an extended cool deck, this outdoor space is a true oasis. Additional highlights include high ceilings, two fireplaces, double front doors. The master suite features a separate exit to the backyard and a spacious walk-in closet. The third bedroom boasts the largest walk-in closet of all! Plus, you have your choice of outstanding elementary and middle schools nearby. Walk to the park down the street. Drive around the corner to Gilbert/Chandler Community College or Chandler Hospital or Phx/Mesa Gateway Airport. This home is truly a gem.

3401 N 37th Street Unit 16 Phoenix, AZ 85018

$580,000
2 Beds
2 Baths
1,494 SqFt
Status Active Under Contract
MLS # 6782005
Property Type Townhouse
Price Type --
This stunning 2-bedroom, 2-bathroom townhome, spanning 1,500 square feet in the highly desirable Arcadia Lite area, seamlessly combines modern design with sophisticated elegance. Upon entry, you're greeted by an expansive open floor plan with soaring ceilings, filling the home with a bright and airy ambiance. A perfect balance of natural and designer lighting enhances the luminosity throughout. The kitchen is a chef's dream, featuring premium Taj Mahal stone countertops, an LG appliance package, and a luxurious wine and coffee bar—all complemented by custom designer finishes. Recently upgraded with a new roof and windows, this home is truly move-in ready, complete with high-end amenities. Both oversized bedrooms offer spacious walk-in closets, and the primary bathroom serves as a serene retreat, complete with dual showers and an indulgent soaking tub. Additionally, a versatile flex space within the home provides the perfect setup for a home office or creative studio, adapting to any lifestyle. The private backyard invites relaxation or entertaining, while the two-car garage adds security and ample storage, making this townhome as practical as it is stylish.

4739 S Leisure Way Gilbert, AZ 85297

$580,000
3 Beds
2 Baths
1,722 SqFt
Status Active Under Contract
MLS # 6769608
Property Type Single Family Residence
Price Type --
Welcome to this stunning single-level home in the highly sought-after Layton Lakes community, where modern living meets everyday convenience. This beautifully updated 3-bedroom, 2-bathroom home offers an open and spacious layout designed to maximize both comfort and style. The moment you step inside, you'll notice the gorgeous flooring throughout, free from any carpet, offering a sleek, low-maintenance appeal. Large windows flood the living spaces with natural light, creating a bright and welcoming atmosphere. Recent upgrades include new exterior paint (Aug/Sept 2024), new faucets, and fresh turf (Oct 2024), ensuring a move-in-ready experience. With its east-west orientation, you'll enjoy plenty of sunlight throughout the day. Nestled in a prime location, this home is close to parks... , walking trails, top-rated schools, and easy access to freeways, making it a perfect choice for both families and professionals. The kitchen is the heart of the home, boasting ample cabinetry, modern appliances, and a breakfast bar that's perfect for casual dining or entertaining guests. Retreat to the serene master suite, which features a generous walk-in closet and a private bathroom for your own personal oasis. Outside, the expansive backyard is a landscaped paradise, featuring a variety of plants and a fenced-in poolideal for relaxation.

18610 W Alice Avenue Waddell, AZ 85355

$580,000
3 Beds
2 Baths
2,131 SqFt
Status Active
MLS # 6787167
Property Type Single Family Residence
Price Type --
Owner/Agent. This stunning 3 bed, 2 bath, +den, single story home offers high-end features and a spacious lot with your own desert oasis to enjoy gorgeous MOUNTAIN VIEWS. Located 3 miles from the incredible White Tank Mountain Regional park with extensive Sonoran Desert TRAILS, nature center, and library with picturesque views, you can truly experience the beauty of the southwest only minutes away while still having easy access to Loop 303 freeway, as well as premier entertainment and dining. Featuring a split floorplan with the primary suite tucked away in the back of the home, the open living space includes a great room, kitchen, and dining room overlooking the extended, covered back patio. Low maintenance landscaping, complete with a custom pergola and crystal blue POOL with water features provide the perfect outdoor retreat. The custom RV GATE makes projects from front to back a breeze. Your modern, light and bright kitchen features quartz countertops, pendant lighting, and a large island with farmhouse sink & breakfast bar. You're sure to appreciate the gas cooktop and upgraded cabinets with under and over cabinet lighting and a walk in pantry. Relax in the primary suite with oversized, custom tiled shower, dual vanity/sinks, and a large walk-in closet. Expansive wood look tile flooring compliments most of the home and in the bedrooms, find newly installed luxury carpet with transferable lifetime warranty. Windows throughout have beautiful custom shutters, and the multi-panel 9-foot sliding door has custom shades for full sunlight or privacy when you need it. You'll love the home's ENERGY SAVING features and a healthier and quieter lifestyle. The 3-CAR GARAGE is insulated and complete with a mini split heating/cooling unit, professionally installed for year-round comfort. White Tank Foothills is a short 10 mile drive from the Westgate Entertainment District and 5 miles south of Prasada Shopping and Dining, close to numerous employers, and top-rated schools, including AMERICAN LEADERSHIP ACADEMY less than 2 miles from home. Come see why this is the home you've been looking for!

19591 W Lincoln Street Buckeye, AZ 85326

$580,000
4 Beds
2.5 Baths
3,428 SqFt
Status Active
MLS # 6748422
Property Type Single Family Residence
Price Type --
This beautifully upgraded home is the one you've been looking for! Step inside to be greeted by an expansive interior, where soaring ceilings and a calming, contemporary color scheme create a serene ambiance. The sleek tile flooring and modern recessed lighting enhance the sophisticated atmosphere. The kitchen is a true chef's delight, featuring ample cabinetry with elegant crown molding, luxurious quartz countertops, and state-of-the-art stainless steel appliances. The large island, with its breakfast bar, serves as the centerpiece of this culinary haven, complemented by a walk-in pantry that offers plenty of storage. Upstairs, a versatile loft space is ideal for a home office, media room, or play area. The primary suite is a sanctuary of comfort, bathed in natural light and offering a pristine ensuite with dual vanities and a spacious walk-in closet. The impressive outdoor space is designed for entertaining. The extended patio provides a perfect setting for gatherings, whether for a quiet evening or a lively celebration. This is a rare opportunity to own a truly exceptional home, don't miss out!

2823 Willow Creek Road Prescott, AZ 86301

$580,000
4 Beds
3 Baths
2,376 SqFt
Status Active
MLS # 6783195
Property Type Single Family Residence
Price Type --
This home is a perfect blend of comfort and future potential, offering a versatile canvas for any lifestyle. nestled on nearly 1/2 acre, it provides ample space for family gatherings and room to grow. The 4th bedroom, complete with its own ensuite, adds a touch of luxury and privacy. Thoughtfully updated with stylish barn doors, a sleek gas stove, and a cozy wood-burning fireplace. It seamlessly combines modern elements with a welcoming, timeless charm. The 2-car garage offers storage flexibility, and with no HOA restrictions, your creative possibilities are limitless. Whether you're seeking relaxation or expansion, this home is ready for whatever you envision.

18428 W Robin Lane Surprise, AZ 85387

$580,000 - 3Br/3Ba -  for Sale in Austin Ranch West Parcel 6, Surprise
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$580,000
3 Beds
2.5 Baths
1,884 SqFt
Status Active
MLS # 6786575
Property Type Single Family Residence
Price Type --
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5132 W Lydia Lane Laveen, AZ 85339

$580,000 - 5Br/4Ba -  for Sale in June Skies, Laveen
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$580,000
5 Beds
4 Baths
2,896 SqFt
Status Active
MLS # 6788167
Property Type Single Family Residence
Price Type --
FORMER Kinkade model over 140k in upgrades! This two-story home features 5 bedrooms and 4 full baths, plenty of room for your needs. The home sits on large, fully landscaped home site, close to playground and walking paths. The spacious open floor plan including large gourmet eat in kitchen, Formal Dining room, Surround sound throughout, Bedroom on 1st floor w/full bath, upstairs loft. The feature list includes hardwood floors downstairs, all new LVP flooring upstairs, slab granite countertop, stainless steel appliances, 12-foot multi slide glass door in Great Room, designer wall treatments, custom subway tile kitchen backsplash, ceiling fans and much more. Backyard gate leads to walking and biking trail, no homes behind you. Located within 2 miles of 202 freeway.

6418 W Irma Lane Glendale, AZ 85308

$580,000
3 Beds
2 Baths
1,834 SqFt
Status Active Under Contract
MLS # 6774108
Property Type Single Family Residence
Price Type --
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2702 E Saddlebrook Road Gilbert, AZ 85298

$580,000
3 Beds
2 Baths
2,044 SqFt
Status Active
MLS # 6769751
Property Type Single Family Residence
Price Type --
Must see this gorgeous home in highly desirable Adora Trails! Fall in love the minute you pull up; N/S exposure, pavered drive way, wrought iron security door. Neutral colors throughout, split floorplan w/ spacious great room. Wood shutters and crown molding. Gourmet kitchen w/ gas cooktop, granite, R/O system, backsplash, pull out shelves, walk in pantry and SS appliances. 3 bdrm, 2 bath + Den with glass french doors. Garage has built in cabinets & workbench. Laundry room has built in cabinets. Owner suite has classy closet. Owner has taken excellent care of this home adding gutters & fully landscaped backyard w/ grass, trees & areas to relax/entertain in covered space. Very desirable Adora Trails is master planned to include a variety of community & lifestyle amenities! Don't Miss out!

20627 W Luke Avenue Buckeye, AZ 85396

$580,000
2 Beds
2 Baths
1,577 SqFt
Status Active
MLS # 6752899
Property Type Single Family Residence
Price Type --
Discover this charming 1,577 sq. ft. Single story home located in the vibrant Victory District of Verrado, a premier 55+ active adult community. This beautifully designed residence features 2 spacious bedrooms, a versatile den perfect for a home office and 2 modern bathrooms. With a layout that emphasizes comfort and functionality, you'll enjoy open-concept living areas, stylish finishes, and access to the community's extensive amenities, including golf courses, pickle ball, tennis courts, pools, walking trails, and social clubs. Ideal for those seeking an active, engaging lifestyle in a welcoming neighborhood.

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