Bubble Behavior

by Osman Parvez

Things aren't so bad in Boulder, but drive about 900 miles south to Phoenix, AZ and you'll find a real estate market imploding. It's also creating some very strong emotions in buyers and sellers. We work with emotional clients too, but nothing like what's being reported in Phoenix.

From the Arizona Republic, comes an article.

Real estate agent Neil Brooks was getting the feeling that his client was about to completely lose it. He'd seen it before.

He had just broken some bad news about her house deal, and she wasn't taking it well. She was pacing, yelling and swearing at him, tossing a cellphone from hand to hand.

"I was thinking, 'OK, here we go,' " said Brooks, who's with Century 21 Arizona Foothills. "Something's going to happen. Something's going to blow."

He was right. The client whirled suddenly and whipped the phone at him. But he was ready. He ducked, and the phone shattered against the wall behind him. The client stormed out of the house.

Brooks wasn't mad, and he wasn't offended. The business of buying and selling houses provokes extreme emotional outbursts. The stress, the financial worries, the personal feelings people have about their homes - sometimes it's too much to take. People yell, they lose sleep, they cry, they're stricken with buyer's and seller's remorse.

That's especially true these days in metropolitan Phoenix's post-boom housing market, where nearly everything has reversed since last year's frenzy. The number of homes for sale on the Arizona Regional Multiple Listing Service increased nearly four times from June 2005 to last month, when it hit a level nearly double what experts consider healthy. Last year, homes sold in about three weeks. Now, it's about triple that
If you want to see how a true bubble market compares to our local real estate, take a look at the statistics mentioned in the article and compare it to our local market.

Hat Tip: Keith
Image: April Mitts

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The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties.   We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate. 

Please Note

This document contains forward-looking statements. You are strongly cautioned that investment results are subject to business, economic and other uncertainties. There are no guarantees associated with any forecast and the opinions stated here are subject to change at any time. Always consult your financial advisor before making an investment decision.