With the current appreciation of the real estate in the last years, you cannot go anywhere without somebody who speaks about their last business of real estate. With the sour taste of the still fresh bubble of actions of Internet in each one the mouth, one cannot help but worry about a similar bubble of real estate bursting in the near future. To look at the facts is the only manner of measuring if the real estate in the area of the subway Phoenix-Scottsdale-MESA will see a pointed decline.
Price of real estate to the report/ratio of income - this report/ratio is often employed to imply an imminent bubble of real estate forming, although it is not correct. While the income did not go up to follow the price of the real estate in the county of Maricopa, a better figure to be taken into account is the maintenance costs of debt of mortgage to the report/ratio of income. This number enables us to look at if people can allow their mortgages on their property, since the majority of the people carry the debt on their real estate. For the area of subway of Phoenix, this number is currently 21% for the area of subway of Phoenix, compared with an average of 30% for the 20 principal sectors of subway of the USA. This made the property in the attractive astonishing one of sector of subway of Phoenix, combined with a 3 years appreciation of 69%.
Catches up with effects - most of the current appreciation that we see in the sector of subway of Phoenix can be allotted to the execution of tern during the Eighties and the 90s. During this period, the domestic prices were relatively flat, thus the current rise in the prices can be seen as has catches up with effect.
Future growth of work of the area of subway of Phoenix - a fall of the domestic prices is rare, and the price domesticates median in the USA did not decrease since the Great Depression the Thirties. The local markets saw declines once accompanied by the pointed declines on the local job market. The growth prospects of 3 years work for the area of subway of Phoenix of the 4.8% forts, are compared with the national average of 2.4%, making a strong argument that the domestic prices will not fall.
Climate of mortgage for - of area of subway of Phoenix 18% of the mortgages in the sector of subway of Phoenix be above 90% of the value of the real estate, while returning the risk of preclusion in the minimal sector. While a rate being in rise of interest would cool the recent growth which we saw in values at the house, it would bring only the sector in conformity with the national average costs of maintenance of debt of mortgage to the report/ratio of income.
After having looked at the numbers, it is clear that concerns for bubble of real estate of Phoenix AZ are exaggerated. The growth of work for the sector seems good and the risk of preclusion is minimal. While the last returns cannot guarantee the future growth, the future looks at very promising for the investment of real estate in the sector of subway of Phoenix. A cooling in the appreciation can occur if interest rates go up abruptly, but it would be far from the bubble burst the saw of stockmarket. But even with the current rise in the rates of loan-housing, the area of Phoenix always sees the appreciation in real estate.
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