Figures released today by the National Association of Realtors show that the Metro Phoenix Area actually increased in price in the last year by an amazing 55.2%, the highest in the nation.
Nobody is predicting a bursting of the "Bubble" but it may lose a few pounds of pressure. The market has been driven by speculators, cash-rich Californians and first time buyers eager to get a foot on the ladder. But remember, unlike California, we have plenty of room to build, and continue to build lots more homes to satisfy demand. To that end, expect to see home builders start to be a little friendlier, no more lines around the block; no more lotteries for your lot, a welcome return to civility.
Finally, interest rates are creeping up to 6.36% 30 year fixed (national average). Although it affects affordability, realistically it is still very cheap money for those of us who remember 8 1/2% ten years ago, and high double digit interest rates twenty five years ago.
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