February 26, 2006

Phoenix collapsing - but news to many


Up 50% one year (thank you speculators). Down 33% the next year (thank you speculators). Yet many of the dolts in Phoenix have no idea what hit 'em... Guess they're still playing three card monty or reading their Herbalife brochure...

Bad news for the many homeowners trying to sell: It's likely only going to get tougher. The number of home listings in metro Phoenix is at an all-time high. In January, there were 30,113 houses for sale across the Valley. A year ago, there were 3,402.

Some sellers still don't realize the housing market has deflated from last year's peak. Not only are the bidding wars gone but so, too, are many of the buyers. Most of the speculators who sparked multiple offers on homes early last year are long gone, and there aren't as many regular buyers because fewer can afford today's higher home prices.

The typical house costs 50 percent more, and the typical income climbed less than 5 percent in the past year.

18 comments:

Anonymous said...

Hello from Phoenix, AZ.
To be exact according to ZIP.Realty there are about 36 000 active listings, there is another aprox. 20 000 FSBO. On the top of it we have builders who are buiding like crazy.According to the last relase it'll be about 26 000 bew houses. People are insane in this shithole and they live in denile It will be over soon.LOL>

the_banker said...
This comment has been removed by a blog administrator.
277.18 Hz said...

20,000 FSBO? How can that be?

seattle price drop said...

Jeezum, 10 times as many homes on the market from last year this time and they STILL haven't caught on there's a bubble happening?

Okay, I guess it's time for me to cut these Seattle bubble deniers a little slack!

Done.

Anonymous said...

In Phoenix it is just a "soft landing" thats all....

Anonymous said...

Xicote,
FSBO won't show up on MLS. Traditinally it's like 30% of the MLS listings. Right now in Phoenix everybody is an expert or/and doesn't have equity to pay the relator so the number is much higher. When you drive through subdivisions you can see the case. A lot FOSBs. Drove today to store and saw about 6 FOSBs versus about 11 regular listings. It's really nice. Forgot to mention that I work as a mtg brooker whore for almost 8 years now. Gonna be a good forclosure market in this shittown.LOL.

cindy said...

Does anyone know why Tuscon escaped this?

What is going on in Tucson?

277.18 Hz said...

Does anyone know why Tuscon escaped this?

Tucson has not escaped! It is close behind, maybe by a few months. Inventory at around 7500 is a record. Prices are just starting to drop.

Bubblepricker said...

The number of speculators playing the house game is staggering! It IS as bad as the dot com bubble. This ain't no soft landing Virginia!

Anonymous said...

I believe just give it 3 more months then real panic will set in. The house next door to mine had been on the market since August last year and still not sold yet and it's even in prime Chandler location area. So imagine other lesser prime areas would be like. This home had been sitting empty for over a year now. It was sold to investors couple of time within a few months jsut last year till this current investor who feel like the greatest fool now. He must feel like crap now when throwing money down the drain each month for 7 months now. Just simple $2K per month that would be 14K down drain already. And you know these type of imateur investors refused to lower the price to make sale. It's just unbeleivable stupidity. Music game is over baby and no chair left to sit. The news kept saying the speculators are gone but I would say not all of them yet because the smart one pulled out last summer and stupid ones got stuck behind. Now the small window is closing on them. I felt sorry for those families that bought into last year home market of worrying they would miss the nice boat to riches but little did they know that they jump on the Titanic. Why don't people want to learn history. It's there so you won't make mistake again but unbelievable how many herd mentality people outhere took it with leap of faith. Speculators, LOL accurate words would be we ran out of stupid morons now. More blood shed coming to AZ home market theater soon.

Anonymous said...

Cindy,
Tucson is bad too. No real economy, low wages. People making money selling houses to each other.

keith said...

on tucson see thread a few days ago, and this article

http://www.azstarnet.com/metro/116830

again, many of these cities got too big for their britches. tucson? nice little cow town. no jobs. people have to be able to afford to buy the houses.

and in tucson, they can't.

so down we go.

there's nothing so different in phoenix or tucson today vs. 5 years ago to justify 100% increase in home values.

Former Tucsonan said...

Tucson has great hiking! But otherwise it's dirt poor. I went back in Summer 2001 (pre-911) to visit my old company-- it had closed down and the entire area -- gas stations, 7-11,etc. were boarded up.

If you make $30K/year there you are rich!

Anonymous said...

I live in Grand Juction, CO, and house prices here have been appreciating at 15%-20% a year, not as bad as AZ & NV, but 2X-3X faster than the state average. The same things are happening here in our little market. Builders are throwing them up as fast as they can, and at the same time the existing stock of unsold new homes and resales continues to grow. Many builders have resorted to filling the empty houses with relatives and workers to avoid paying higher insurance premiums for "unoccupied" houses.

The realtors keep publishing happy-talk B.S. about the dynamic and vibrant housing market, and how there is no bubble -- LOL!

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