In yesterday's blog, I wrote about the perception of consumers and media about the horrible state of the Real Estate Market.

The Trisha Bonnell Group lives and does business in Ahwatukee, so I decided to focus on the numbers for that area and see what really has happened in the last 7 years in this market.

For Ahwatukee, the median price of a home in 2000 was $167,800 and it rose to $328,000 by 2007 - this is the "bad" market the media constantly refers to.

If we had not had the spike in the market in 2005, and had maintained a very respectable 6% increase in home values year over year, that $167,800 in 2000 would be $252,309 at the end of 2007 - well below where we are now! A 10% year over year increase in home value would have put us at $326,995 -  surprisingly close to where we actually did end up($328,000), and an overall fantastic result!

If we had not had the unrealistic spike in 2005 due to sub prime mortgages and investors swooping into our market, we would all be very pleased with a 6% or a 10% year over year increase in the value of our homes. 

We have actually realized closer to a 90% increase in value over those 7 years rather than the 80% I said yesterday.

Check out my graph: