A report posted this morning on DSNews.com addresses the concerns by some that we are in the midst of another housing "bubble" due to the rapid price/value gains over the past six months. Especially when looking at my local market of homes for sale in Maricopa Arizona, I have to agree with a number of their reasonings that there is nothing to be concerned about at this point.
First of all, the percentage of the value "run up" does nor even begin to approach the declines that we experienced during the housing market crash of 2007. It would take quite a few years of value increases at the rate experienced over the past few months to even begin to approach the prices before the crash. At least in my market, I cannot see this happening in Maricopa Arizona as our inventory of homes is still quite high and we have actually experienced a little softening of prices over the past few months. Since new listings continue to enter our marketplace at a rate of around 30 listings/week, coupled with the fact that our seasonal buyers hve begun to return home for the year, I foresee that inventory will begin to rise again and values will actually drop around 10% over the next six months. In addition, new home builders are agressively pricing their product and are continuing to open up new areas since we have so much vacant land available that already has infrastructure in place.
Another reason I am not concerned is that this price run up has actually helpes our local homes forsale market in Maricopa Arizona as many homeowners are now able to consider a sale of their home that was not possible a year or two ago. Two years ago, it was very rare for Wizards of Waz Real Estate to list a traditional sale. This year, most of our listings are traditional sales and we continue to receive more inquiries from Maricopa residents every week.
For now, I feel that the mimi "bubble" is a good thing and I have to assume that everyone has learned their lessons form the crash of 2007. Of course, we all know what they say about the word "assume"!!!
Read the full article here: http://bit.ly/ZsaFRk