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Updated May 1, 2013 - 10:04 am

Rising home prices worry Phoenix economist

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."

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About the Author


Position: Senior News Reporter. Started with KTAR July 4, 1999.

Favorite spots in Arizona: Pinetop-Lakeside, Alpine, Greer.

Have covered some of the biggest stories in Arizona including nine of the top 10 largest wildfires in state history. The Wallow Fire in 2011 became the largest fire in state history. Rodeo-Chediski Fire in June 2002, which is the second largest fire in Arizona. Covered the Yarnell Hill Tragedy in June 2013 that left 19 Granite Mountain Hotshots dead.

Favorite movies: True Grit, both 1969 John Wayne classic and the remake with Jeff Bridges and Lonesome Dove.

Sports Teams: Washington State University Cougars, Texas Longhorns, The University of Montana Grizzlies.

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