Phoenix real estate expert says housing bubble not likely to occur
PHOENIX (3TV/CBS 5) -- Real estate agents across the Valley are doing their best to get their clients into a nice home. But options are limited, and prices are through the roof.
“It’s very frustrating in this market,” said realtor Kim Hales with Home Smart. “You have people that put in 10-20 offers before you might get one accepted. The prices are very inflated when you see some of the houses being sold. It’s a little shocking, even for myself as a real estate agent, what some of these houses are going for.”
Home prices are soaring to new heights and keep climbing, leading to speculation that a housing bubble is brewing. New research from some federal economists suggests that unsustainable home price growth and price to income ratios are out of whack with the current marketplace, which could lead to a dramatic correction.
Phoenix real estate expert Trevor Halpern, with Halpern Residential at North&Co, doesn’t see it that way. He said what we’re seeing today in the Phoenix housing market is not the same as what happened in 2008. “We’re not really seeing anything to indicate a crash,” said Halpern. “But those factors, high inflation, increase in price of homes, slow down in demand because of increase in interest rates, are all factors when you read the tea leaves indicating that long run of appreciation is going to come to some sort of end.”
Halpern predicts a slower increase in home prices over the next few months, then some leveling off towards the end of the year. It’s a sentiment shared by Mark Stapp, a real estate expert with ASU’s WP Carey School of Business. He said that Arizona is still an attractive destination compared to California and other states.
“We’re still looking like a fairly reasonably priced marketplace, but affordability is the single biggest issue we have, and it’s not an easy one to fix,” said Stapp. “This is definitely not a bubble, and I don’t think we’ll be in a situation where we’ll see prices plummet at all.”
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