Wednesday, July 24, 2013 / by Jay Macklin
Are we In another Bubble?
Are We In Another Bubble?
Just a few years ago, the Phoenix area was pummeled by the mortgage crisis. But now realtors and buyers are frustrated with how fast the market is recovering. The Median Sales price is up nearly 40 percent from the same time last year.
For an idea of how strange things have gotten, consider the story of area Realtor’s that show properties new to the market and must write up an offer in the house they’re showing just be in competition to have their buyers buy it, But wait, haven't we been through this before?
"I can think of eight reasons why it's not a bubble," says Michael Orr, a researcher with Arizona State University's W.P. Carey School of Business. First, unlike 2005, people are actually living in the homes they're buying, Orr says. Second, there aren't enough construction workers to build new houses, so oversupply won't be a problem for a while. And third:
"In the last bubble we had the availability of loans to almost; ...
Just a few years ago, the Phoenix area was pummeled by the mortgage crisis. But now realtors and buyers are frustrated with how fast the market is recovering. The Median Sales price is up nearly 40 percent from the same time last year.
For an idea of how strange things have gotten, consider the story of area Realtor’s that show properties new to the market and must write up an offer in the house they’re showing just be in competition to have their buyers buy it, But wait, haven't we been through this before?
"I can think of eight reasons why it's not a bubble," says Michael Orr, a researcher with Arizona State University's W.P. Carey School of Business. First, unlike 2005, people are actually living in the homes they're buying, Orr says. Second, there aren't enough construction workers to build new houses, so oversupply won't be a problem for a while. And third:
"In the last bubble we had the availability of loans to almost; ...
