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RL Brown Housing Report Shows No Sign of Valley Bubble by PHX BizJournal featured by SVN | SFRhub Advisors

It’s been over a decade since the economic downturn, home sellers and buyers have been reluctant to advance, but studies show that the residential sector is thriving.

“This is a solid-looking housing market… it’s the best it’s been in years,” said RL Brown, publisher of RL Brown Housing Reports.

What are your thoughts on this? Do you agree? Let us know below in the comments.

Originally posted by PHX BizJournals.

Since the economic downturn a decade ago, home sellers and buyers alike in the Phoenix region have been apprehensive about the housing industry with worries of another bubble getting ready to burst.

According to a study by Metro Phoenix Housing Market Data and Analysis and RL Brown Housing Reports, the Valley’s residential sector is not only surviving but also thriving — with no sign of a bubble.

“This is a solid-looking housing market… it’s the best it’s been in years,” said RL Brown, publisher of RL Brown Housing Reports.

The report states the region saw the most home permits and closing it has seen in the past 10 years for October.

New home sale prices were up 5.89 percent in October, according to the monthly report, with a median price of $332,186 on 1,651 sales for the month. Resale home prices were up 1.83 percent with a median price of $250,000 on 8,542 sales for October.

Data in the report shows the housing market is experiencing a steady increase, whereas a bubble typically comes after a rapid spike in sales and prices.

“You almost can’t not see a news article warning about some real estate bubble,” Brown said. “It’s kind of interesting when you take that, and you compare it to what’s really going on factually. In this housing market, there’s really no way you could say that the Phoenix housing market is in any kind of bubble configuration or even looks like its heading toward a bubble. The trends here are solid, and the trends we are seeing in both new and resale are growing with the growing population.”

Recent national media reports have drawn attention to home prices rising, single-family starts falling short of expectations and builders around the country losing confidence. Brown said those trends are not relevant to the Valley.

“Housing, for a large degree, is a local economic phenomenon. We’ve seen that proven over and over again,” he said.

Home prices have risen in the Phoenix area, but are not soaring without reason, Brown said, adding that this reflects the growth seen in population, jobs, and wages.

“It’s how the prices relate to the capability of the consumer,” Brown said. “We haven’t seen growth like this — solid economic, population, and job growth in this market place — for a long time.”

Throughout the Valley, builders are confident and should rightly remain so, Brown noted, adding the growth is sustainable and is likely to continue.

“This is the kind of housing market consumers should be looking for — be they buyers or be they sellers. This is a steady, stable, but growing housing market on the resale side and the new home sale side,” Brown said.

Originally posted by PHX BizJournals.

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