Despite Home Prices, Experts Don't See a Housing Bubble for Phoenix
Housing prices have been on the rise in many markets across the U.S. for years now, leading many to be wary of another housing bubble bursting. Phoenix is among the metro areas in that condition, but housing experts recently told AZCentral that the slow and steady growth of the market is actually on track to stability.
Unlike 31 of the 50 biggest U.S. markets reaching boom-level prices or higher, Phoenix prices have increased slowly and remain below the housing peak of the 2000s. Tina Tamboer, a senior housing analyst with the Cromford Report, explained that the median-priced home at $245,000 was still 93 percent of the bubble’s peak prices and that it has taken Phoenix six years to reach this point.
Naturally, some are still concerned and watching for signs of an impending crash. However, even in some of Phoenix’s most popular neighborhoods, such as Roosevelt Row, Arcadia, and Downtown, where price “microbursts” might be experienced first, are remaining steady because of smarter loan practices requiring larger down payments and stricter regulations. Another indicator Phoenix is safe is that even though popular neighborhoods are sparking bidding wars and increased prices, new builds remain at a third of what they were during the height of the last decade.
Tamboer tells AZCentral that the number people should pay attention to is the price per square feet. The current median price per square feet for an average Valley home is $155, or 20 percent lower than what it was during the peak.