USA Today this morning screams, “The median existing-home price was $208,500 in the second quarter, up 13.6% from 2004. The Phoenix area had the biggest price gains, up 47% from the second quarter of 2004 to $243,400.”
Home prices keep rising. I was reading the local local paper – this is the neighborhood paper – and it had a listing of all the sales in the North Gilbert area – where I live about 20 minutes from Phoenix. I couldn’t beleive what I was reading. A 1500 sq. ft home about what my house is sold for $285,000 last month. Last year you could have probably bought that house for $165,000! That is a crazy increase.
People feel wealthy around here. I mean with all this equity you can take out a home equity line of credit and buy a new car, get a new entertainment set, or go to Australia on a 3 week vacation cruise. I don’t see this thing slowing. There are so many people moving to the area from California, Indiana, Vermont etc. etc. and the weather is just great – as long as you can withstand 2 month of 105+ heat – jobs are coming in. I just saw a headline the other day that said a Candadian bio-tech company was moving into the area. Wow. Things are good down here.
So, as a mortgage consultant I feel pretty good about the next few years. I also feel good for the people that are here, and I feel good for my clients.