Tips & Trends for the Flagstaff Real Estate Market:
Past Articles [May 2005]
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The “Housing Bubble” and its Effects on our Real Estate Market
Much has been said lately about a national housing bubble and the effects its impending burst will have on the housing market and the economy as a whole. If it is true, and it does come to pass we as homeowners, investors and observers must all consider how it will affect our local real estate market and our community.
There is no single strategy that we can take to limit slowing real estate values as we are all at the mercy of supply and demand as well as fickle mortgage interest rates. Currently we are in a sellers market and home values are at an all time high in Northern Arizona. If you own a home and want to keep its value as high as possible I suggest you keep it well maintained and looking in the best condition that you can. You not only help yourself but you help keep your neighbors and neighborhood property values at a premium.
While there is little doubt that home values will level off at some point I believe there is little cause for fear of an imminent large reduction in home values in Flagstaff. As I have written before, our town and surrounding communities are in a desirable location and a large number of people are seeking homeownership here. Unless that changes I see no cause for concern that our real estate values will drop significantly in the foreseeable future.
If real estate ownership is of interest to you I suggest that you read a new book titled “Are You Missing the Real Estate Boom?” by David Lereah the chief economist for the National Association of Realtors. In it he discusses the perceived real estate bubble and why the real estate market is poised to climb even higher over the next ten years. It is interesting reading and much of his advice and observations can be applied right here in our town.
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