I live here folks. So does Ben Jones of HousingBubble2... Phoenix was a terrible real estate market for decades.. then BOOM - one year, 55% increase. One year.
What changed? The desert is still riped to be raped. There are still no real companies or real jobs here.
What changed? One thing and one thing only. Investors. They decended upon this city from LA, from San Diego, from Las Vegas, from Miami, and they bought everything in site last year. Everything. And bid up the price of houses and condos to levels that are today looking foolish.
But now they're gone. And so are the new high prices. Never to be seen again.
Pop.
The good news: Home prices soared 55.2 percent across metropolitan Phoenix in the past year, making it the nation's hottest housing market.
The reality: The Valley's biggest home price run-ups are behind it. The area's housing market likely peaked during the September 2004 to September 2005 period, because in October, home prices fell slightly. It was the first dip for Valley homeowners in almost two years.
November 17, 2005
The Top: Valley's home market No. 1 for price increases - But big price increases likely thing of the past
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3 comments:
Realtors don't get it period!
David Lereah, chief economist for the National Association of Realtors.
Lereah words:
"The air is starting to come out of the national housing balloon, but Phoenix has a good job market and strong in-migration, so it won't experience a bubble bursting,"
I say to Mr. Lereah,
To fill the car gas tank will from now on be horrible. To heat and cool homes will take 5% or more from the past years heating bill.
Poster Edward1578, writes about Phoenix:
This is not good at all. Take the what the average person makes. Most of these people who by a house with meadian incomes will be forced to file bankruptcy in about three years. If you're not making over $30 an hour or $70,000 a year, you can't afford to live in Arizona anymore. These investers hurt Arizona more than they know. Teachers and other low income familys will be hurting and it's sad. (Edward1578, November 16, 2005 04:47PM)
realtors DO get it. However, they're going in front of cameras and saying things to the press that they know are dead-on wrong. They're lying. Why? To protect themselves.
Their days are numbered though. Just like the discredited (and sometimes jailed) wall street analysts from 2001.
I can think of a good number of people that I know who have relocated to Phoenix in the past 2 years as housing prices have escalated in SoCal.
In a way, it amazes me that they had all just left one area where speculation and infestors (my term)had run prices up wildly, but were blind to it happening all around them again once they had relocated to bigger homes and larger payments in AZ.
Recently, a friend called me from Phoenix to tell me that she had heard that the market here in San Diego had slowed down and assumed that I would be looking to buy a house now that things had "calmed down." I explained the state of the market here but she didn't quite understand my hesitation. She was too busy congratulating herself on her premium priced new house, $30K HELOC financed pool, and living someplace where something "like a housing crash wouldn't happen."
One rude awakening, incoming. =(
Both Phoenix and San Diego are showing signs that the party is over and the infestors have headed for the exits, leaving us to clean up the mess.
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