Mission De Los Arroyos Report Archive - July 2005

Is this Hot Market Sustainable?

A recent article in The Phoenix Housing Market Letter by R.L Brown and Greg Burger argued that the sustainability of the today's market is dependent upon housing affordability. Their conclusion was that even though housing prices have risen drastically, affordable homes are still being built in the Valley - and that's why people from all the high-cost markets are moving to Phoenix and will continue to do so as long our housing industry continues to offer relatively affordable housing. To bolster their argument, they cite the significant number of national builders active here (13 out of the top 15 builders).

Our current population of 3.7 million is expected to grow to 4.3 million by 2010 and 5.2 million by 2015. If that growth continues - with or without the significant number of investors in the marketplace now - the housing market should remain strong for a number of years.

That's what they say - but who knows what will really happen. The reception on my crystal ball went on the fritz in the late ‘90s.