Are we experiencing another real estate bubble?
In regards to the Phoenix Real Estate Market, the big question on everyone’s mind is…. Are we experiencing a real estate bubble similar to what happened in 2005 – 2007? Based on what we’re experiencing in our current market, our answer is no.
Lending Practices | Then vs. Now
In our last real estate bubble, to say lending practices were loose would be an understatement. At that time adjustable rate mortgages, 100% financing, and non qualifying loans were common. Now we have large down payments, substantial equity in homes, tougher lending guidelines, and appraisers who answer to underwriters instead of mortgage companies.
In addition to all of that, we’re seeing 30 year fixed mortgages as the norm in the Phoenix real estate market, with more buyers paying cash – even in the $2 million price range!
The Bottom Line
While we’re not able to predict the future, based on current market stats and all of the above, we see real estate in Phoenix staying healthy for a long time.
Want to learn more? Check out Steve and Erik’s market update video!