You know, I actually feel sorry for folks who, because they're about to close on a house, feel motivated to write to the media to tell them shhhh... no more bubble stories... you'll blow it for everyone!
Letter to the Editor - Arizona Republic
No housing 'bubble' bursting in the Valley
May. 27, 2006 12:00 AM
I see an awful lot written about the real estate "bubble" bursting, but I've yet to see evidence of this happening in Phoenix.I'm buying a home in Buckeye, a town that has seen a 4 percent increase in sales this quarter compared with the same time last year and where price appreciation has increased every month during the past three months.
In the overall Phoenix market, inventory is up more than 10 times year-ago levels; prices are up 70 percent over 2004 levels; yet sales dipped only 7 percent in the first quarter of 2006. Is this evidence of a bubble bursting? I think not.
The media's bubble talk could become a self-fulfilling prophecy. It's easy to write about the doomsday scenario because it makes for dramatic reading, but the problems start to arise when it has no basis in fact and readers actually start to believe it - much like the overhyped Y2K bug.I would like to see a thoughtful, sane, rational article about the real estate market that looks at the actual numbers, breaks them down, and tells us what they mean. Is that too much to ask?
- Sonny Shrivastava, Tolleson
May 27, 2006
Posted by blogger at 5/27/2006