Eventually even the REIC advertising supported Republic had to eventually report some (not all) of the truth about the Great Phoenix Housing Crash. Must have pissed off the bloated Catherine Reagor though... No more free dinners paid for by her real estate clerk buddies.
Now the story:
More pain ahead predicted for Valley real estate
By Glen Creno The Arizona Republic
More than 800 people registered for the Urban Land Institute's real estate trends conference, going on today in downtown Phoenix.
One of the big questions on people's minds at the ULI conference is what's next for Phoenix housing. A panel that included a top land broker and some building executives agree one one thing: There's more pain ahead before the market bottoms.
"What we saw (in the boom), we'll never see again in our lifetimes," said Steve Hilton, chief executive of Scottsdale-based Meritage Homes.
Then, this hilarious Republic reader comment to Glen's story:
"If people stop the panic mode, everything will be ok. If you don't HAVE to sell your home, then do us all a favor and don't.
Don't listen to your Realtor, why would you listen to someone whom has less education than yourself?"
(John9169, January 9, 2007 03:47PM)
January 11, 2007
Phoenix housing bubble: "What we saw (in the boom) we'll never see again in our lifetimes"
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22 comments:
And again in the Rpublic'
The Valley's median home price is a record at $260,600, but Butler noted that the median fell from $267,000 in June to $255,900 in December. The national median is expected to be $222,100 for last year.
GEE!! AVG. income in the are around 40k. HMMMM. Still pretty disconnected from reality.
The Valley's median home price is a record at $260,600, but Butler noted that the median fell from $267,000 in June to $255,900 in December. The national median is expected to be $222,100 for last year.
Yuck!!
And to think Doug Kass was a guest host on CNBC this morning and called for "reversion to the mean in 2007."
from 267 to 256...WOW!!! A whole 4.1% decline. You guys were right. I was wrong. A crash of historical proportions occured in Phoenix.
"Don't listen to your Realtor, why would you listen to someone whom has less education than yourself?"
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Very true. Went to sell our home in Feb '06, and on the advice of our realtor we listed at $50K more than we wanted. Are you sure you can get that, I asked? I made it clear this was a must sell situation, not profit taking. My greed won over and cost us in the long run; 6 months later we ended up getting $25K less than we wanted. I've even entertained notions of a negligence suit, considering what I know now of the market fundamentals at the time. Professional advice to stretch the asking price in early '06 could easily be interpreted as negligence, especially given the compensation involved. Of course they would counter that it's ultimately my decision to set price, how convenient. Oh well lesson learned, and we did make serious 5 figure profits in 4 years.
Then, this hilarious Republic reader comment to Glen's story:
"If people stop the panic mode, everything will be ok. If you don't HAVE to sell your home, then do us all a favor and don't.
HEY! Everyone is intitled to me a millionaire.
GEE!! AVG. income in the are around 40k. HMMMM. Still pretty disconnected from reality.
Thursday, January 11, 2007 12:31:50 PM
Seems like we have that in many places in this country.....
When did that 2.5 times income formula get established? 70s, 80s..around there I would guess.
Back when mortgage interest rates were 12%, 15%? It's a whole new calculation on affordability when the rates are 6%.
There's a shortage of desert land in Arizona. That's why prices went up 300%
Why shouldn'ta person making $40K/yr be able to live in a $600K house? It's a right
I guess anyone can live in a 600K stucco box making 40K a year. Hell , why not buy 3 of them !!
For 2 years it will be a euphoric experience. Or until the ARM boots ya out and into BK court.
jealous?
Wow crying he listened, sold, made $25,000 less than they wanted, and then gloats that he still made some serious six figure profit in four years? Typical of HP bloggers...cry victim and smile going to the bank.
Like the RealTroll said, houses in Phoenix are like rare collectible cars. Condos in San Diego are like rare collectible stamps. That's why they should be worth 10X annual salary.
It used to be 25-30% of income spent on PITI. Today it is 50% or more. What does that have to do with interest rates?
Mortgage rates were 7% in the late 1990's. Now they are 6%. Why did home values rise by 300% or more in Phoenix? Is there a shortage of land? I just drove from Las Cruces to Phoenix, and saw nothing but empty desert.
from 267 to 256...WOW!!! A whole 4.1% decline. You guys were right. I was wrong. A crash of historical proportions occured in Phoenix.
Thursday, January 11, 2007 4:11:16 PM
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This is the comment of someone who has no idea about the nature of valuation in the housing market. It does not work like a liquid market such as stocks & bonds. Just keep up the snark and hope that you haven't bought since 1999.
Anon said:"Back when mortgage interest rates were 12%, 15%? It's a whole new calculation on affordability when the rates are 6%".
Not-it's based on affordability,(2x salary) not interest rates.
Just wait and see how affordable this market gets once it goes back to the basic lending practice of buying homes based on salaries, (what one can afford)downpayments and credit scores.
I'll bet too you havent heard of real estate peaks and troughs either.
Only if the 600K house is paid for is 40K a year possible.
Not-it's based on affordability,(2x salary) not interest rates.
This is the stupidest comment I have read here. So what you're saying is that if I make $100K a year I can afford a $200K home regardless of whther my mortgage interest rate is 5% or 25%.
Geezuz you are dense.
Mortgage rates were 7% in the late 1990's. Now they are 6%. Why did home values rise by 300% or more in Phoenix? Is there a shortage of land? I just drove from Las Cruces to Phoenix, and saw nothing but empty desert.
Thursday, January 11, 2007 11:49:59 PM
It's the dry air. You can't find it ANYWHERE else!!!!!
I just drove from Las Cruces to Phoenix, and saw nothing but empty desert.
How much of that land is owned by the Feds? 80% of Nevada is gov't owned. 50% of Arizona, 62% of Idaho. This doesn't include Indian reservations either of which there are numerous in Arizona. So yeah you saw nothing but empty desert, try building something on it and see how far you get.
Please stop the panic mode? Holy crap, can't you see you were duped like with all the other bubbles in history. Unless you wise up,
stop spending $ you don't have and pay off your debt - you'll never recover. Read my lips: Making millions overnight is not a God given right!
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