Historically, the heat of summer wilts the Phoenix housing market, a phenomenon reflected in the June housing report from the Center for Real Estate Theory and Practice at the W. P. Carey School of Business. Mike Orr, director of the center, says that prices tend to stay put or even drift downward during the summer doldrums. This year prices may be sliding sideward, and Wall Street is focused on the rise in interest rates. But pay no attention, Orr says. The long term trend will hinge on the major factors, which are population growth versus housing supply.
Development is re-awakening in Phoenix following a pause in activity that was enforced by the recession. Professor Mark Stapp, director of the Master of real Estate Development program, notes in this conversation that many of the developments that managed to be built during the pause created a character of community not seen when the market was hot: local, unique, social collectors. In this podcast he talks with Claude and Nina Gruen, founders of Gruen Gruen + Associates, about the new facts of life post-pause that developers ignore at their peril. Claude Gruen’s new book is called “New Urban Development: Looking Back to See Forward.”
Some real estate commentators are making ominous predictions that the market is once again inflating like a bubble. But Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business, says there is no evidence in the data to support their assertions. Similarly, history shows that rising interest rates do not deflate buyer interest. Listen to this seasoned expert explain in this conversation about the latest Greater Phoenix Housing Report.
Rumblings in the media hint that rising home prices could be the start of a new bubble, but real estate expert Mike Orr says that researchers who are examining the data don’t believe it. Instead, he says Phoenix is experiencing a market come back. The market continues to be complex, however, with supply constrained and the homebuilding industry cautious. Based on March data for land transactions, the hot area for homebuilding is likely to be Southeast Gilbert, Southeast Mesa and Queen Creek.