Real Estate Official Predicts Robust 2006 For Arizona

The Arizona Republic reports on Bill Jilbert's (top official with Coldwell Banker Residential Brokerage) take on the real estate market for 2006.

He states that our overheated market six months ago is now moving back to a more normal level. He predicts a robust 2006 but nothing like he saw in 2005.

Affordability is a concern, with rising prices forcing growth out to the fringe areas of Casa Grande and Maricopa, along with a lot of apartment conversions into condos.

He sees a very strong and vibrant luxury market with no signs of softening.

On the "vertical" condo market, he states that he doesn't know how deep that market is but that they continue to move.

He does not have any "bubble" concerns and believes interest rates are still quite affordable. More...

I couldn't agree more with regard to today's interest rates. I remember when my parents bought a home in the 80's and had a 30 year mortgage with an interest rate in the low teens. In another example, my wife and I decided to buy a brand new home in 1995 because rates went down to 8.5 percent (yet we ended up with 7.25% on a 30 year fixed mortgage in Phoenix). Today's rates are outstanding, even if they jump into the 7's or 8's they would still be considered quite affordable in my book. And, with the great lifestyle Central Arizona offers, people will continue to relocate to Phoenix in the future.