W.P. Carey School says real estate bubble unlikely

A new report from Arizona State University’s business school found the Valley is not likely to see another housing bubble in the near future. During the recent recession, Arizona was among the hardest-hit states in the nation, in large part due to massive investments in real estate. As the economy slowly continues to improve, many have warned against the dangers of another housing bubble.

But, a report from the W.P. Carey School of Business said the greater Phoenix housing market is not in danger of a bubble, even though home prices have been climbing dramatically.

The median price of a single-family home jumped nearly thirty percent from April 2012 to April 2013, but the number of homes for sale remains very small.

And despite investors buying up Valley houses to rent them out, the report said those houses would not have much effect if they all went back on the market, since rental houses represent just 1 percent of the local housing market.