Register | Forgot Your Password? | Close

PHOENIX -- The Valley's home market continues to recover from the housing crash five years ago, but a local economist sees some danger signs on the horizon.

Local home prices rose by more than 30 percent last year but economist Jim Rounds with Elliott D. Pollack and Company said if this continued it could lead to another housing bubble.

"I would much rather see a steady increase of 10-12 percent year over year," Rounds said. "If we're in that range, we will be OK; if we continue in the 30 percent range we could be in trouble."

Rounds said there is high chance of another bubble if there is a 30 percent jump in prices in each of the next two years.

"Our economic growth can't sustain that kind of appreciation."

Jim Cross, Reporter

share this story:
Attention KTAR.com Comment Users: We have recently changed our comments boards.
We would like you to be part of the conversation and The Voice of Arizona by logging in with your Facebook, Twitter, Google+ or Disqus account. Existing KTAR (Arizona Sports) account members will need to create a Disqus account or use one of the aforementioned social media logins. Thank you.
comments powered by Disqus

World Class Arizona

  • Dignity Health

    World Class People. World Class Company. Excellent care, delivered with compassion, for all in need.
  • CopperPoint Mutual Insurance Company

    SCF Arizona has a new name. They are now CopperPoint Mutual Insurance Company.
  • Taylor Morrison

    World Class People. World Class Company. We are a national home builder committed to building homes inspired by you.
  • Go Daddy

    World Class People. World Class Company. Go Daddy is a Fortune 100 "Best Companies to Work For."
  • Avnet

    World Class People. World Class Company. Here's information on a Fortune 500 company from Arizona.

Voice For A Better Arizona

  • Working For Arizona

    The business and economics of Arizona at the start of 2014 and looking forward.
  • Arizonans In Need

    Putting a focus on charities and organizations who provide help and/or need your help to fulfill their missions.
close

Share: