Phoenix Housing not Threatened by Real Estate Bubble

Recently, there has been a great deal of speculation as to the possibility of a housing bubble in Phoenix and other Arizona cities. However, the publication Inside Tucson Business claims that Phoenix housing prices are in no danger of overvalue.

In a National Association of Realtors report, Phoenix housing was listed as some of the hottest in the nation’s metropolitan market. The association also reported that the median home price had increased 47 percent, making the median cost of Phoenix housing $243,400.

This increase in median Phoenix housing price is a result of increased interest in the area, including a strong economy and increasing population. Low supply and high demand are pushing up prices, but Arizona realtors believe that eventually prices will begin to level off.

The results of a National City Corp study back local realtor claims that a housing bubble is non-existent when t comes to Phoenix housing. Phoenix and Tucson were at the bottom of the list of cities threatened by an overvalued market. Phoenix housing prices were listed 16 percent above normal, while cities in the danger zone have an overvaluation of 30 percent or higher.