May 20, 2008

What goes up must come down. Vegas, Miami, Phoenix, San Diego and LA get some housing crash love


Funny how the five cities that got mentioned here the most over the past few years are now the five cities with the biggest housing crashes underway. Oh, wait, no, that's really not funny. Interesting, yes. Funny, no.

"Year-round golf and pro athletes" - now THAT was funny.

Here's the blurb on Phoenix from the smartmoney housing crash report headlining yahoo.com right now.

Phoenix

Tumbleweeds aren't exactly taking over the streets of Phoenix, but the city has seen quite an exodus from a couple of years ago when speculators and real estate developers descended on it en masse. More than 67,100 single-family homes were built in Phoenix between 2000 and 2006, according to the Census Bureau, with home values rising by 127%.

Once home values started to unravel, however, speculators started abandoning their rental and investment properties. "People will go to much longer lengths to avoid defaulting on a primary residence than on a secondary home," says Wyss. Now, home values are down 24% from their peak.

14 comments:

venetiancafe said...

The idiot "reporter" failed to mention that prices in Phx rose at least 100% during 2 years: 2004 and 2005. In some parts of Scottsdale, prices rose about 100% in a year. So much for details.

RE.Agent said...

http://money.cnn.com/video/#/video/news/2008/05/15/news.gutierrez.parking.cnnmoney

Note the make.

Anonymous said...

.


that photo.......


another drunk mex passed out in a tumbleweed!

Just another day in SoCal!


ole


.

Anonymous said...

Swanndive is doing conferences now

Anonymous said...

In some parts of Scottsdale, prices rose about 100% in a year.

-----

not really, not when nearly 100% of the mortgages in Scottsdale are interest-only or no-doc liar's loans, the 100% is just an illusion then

rich in fl said...

i am starting to have an erie feeling where i live in south fl. Since i do a lot of driving i have noticed the highways are dead all of the time. sometimes during the mid-day i never have to change lanes while driving. instead of being 2 or 3 in the afternoon it looks like 6-7 in the am. as far as real estate goes it seems like we are at a standstill where no one can do anything at this time. it's scary! there are some rich people(very rich) scooping up falling knifes thinking we hit bottom and deals are good. i look at any neighbor hood and the first 10-15 listing are foreclosures. like phx i think palm beach county is overbuilt and i am starting to understand what this means to our service oriented economy. house prices are dropping, rents are dropping and gas is at $4 and our local economy depends on real estate and healthcare.

rich in fl

Anonymous said...

God, I just spent two weeks with my father in law who lives in San Diego ( north county) He is still building a massive remodel/ addition which when he's done will CASH out and move to Montana. He's got 3 helocs on the property and spends cash like crazy. I know he is way, way underwater, but he thinks he will make a killing and live free in retirement from the profits of the sale. Its impossible to talk with him about money, no clue what so ever about money. Die hard GOP hate illegal mexicans, but hires them to work at his construction company or around his house. He kept saying to all my friends " man SD went up like 300% so I'm not worried about a little decline" Just a little story about the type of people we are dealing with.

Anonymous said...

Oh Frankie, where are you?

Looks like another opportunity for you to beat up on Scottsdale, and we know that you can't resist it!

Entertain us today - please don't let us down!

Anonymous said...

This site has a great deal of valuable information but Frankie doesn't know squat about Scottsdale. According to him, the streets and shops are barren due to 30 K millionaires. The streets are crowded and people are spending money as usual. Not everybody in Scottsdale has a variable rate mortgage. There are actually many normal families that live here. It's just the idiots who make the press.

foxwoodlief said...

The worst of times...the best of times...and things are not always as they seem.

Last week, camping out again to buy homes in NE Mesa? There are markets within markets. Within cities, within neighborhoods, within States, within the USA.

Australia was touted as having some of the highest home prices and appreciation. Sydney was crashing and burning and the real estate market there was to be an indicator of what to expect here. Hmmmm, no crash and burn, stagnation, some outer suburbs saw price declines, but homes there are still twice of here on average.

Britain, Europe? Higher prices still...wait till their market softens and drops. We are getting back to the norm. The house I just purchased was $84 a sq ft loaded. The price adjusted for inflation to 1982 (the last time Phoenix saw a crunch and I had purchased my first home, a starter with limited upgrades for $45 as sq ft, the new house works out to $35 a sq ft loaded). So, how low can it go? They've sold 27 homes in my new neighborhood within four months.

Inflation rising? So, why isn't owning at 6% fixed better that everything rising at 7-8% (real inflation)?

k.w. - southern ca. said...

I would recommend that your friend take a trip down here to Southern Ca., within the coastal areas - where prices went into the stratosphere.

What went "WAY" up "MUST" come "WAY" down - basic economy 101, and a bit of mathematics.

In the meantime, he can enjoy
his nervana.

Anonymous said...
God, I just spent two weeks with my father in law who lives in San Diego ( north county) He is still building a massive remodel/ addition which when he's done will CASH out and move to Montana. He's got 3 helocs on the property and spends cash like crazy. I know he is way, way underwater, but he thinks he will make a killing and live free in retirement from the profits of the sale. Its impossible to talk with him about money, no clue what so ever about money. Die hard GOP hate illegal mexicans, but hires them to work at his construction company or around his house. He kept saying to all my friends " man SD went up like 300% so I'm not worried about a little decline" Just a little story about the type of people we are dealing with.

Anonymous said...

Die hard GOP hate illegal mexicans, but hires them to work at his construction company or around his house

I'm sure the Hoolywood celebs and academia love to live in the barrios with the Mestizo hordes

Anonymous said...

>>>>>This site has a great deal of valuable information but Frankie doesn't know squat about Scottsdale. According to him, the streets and shops are barren due to 30 K millionaires. The streets are crowded and people are spending money as usual. Not everybody in Scottsdale has a variable rate mortgage. There are actually many normal families that live here. It's just the idiots who make the press.<<<<<

In Scottsdale? ARIZONA? Bullshit! You must be 6%er. As I drive through north Scottdale, high end specialty stores are closing, Walmart is even seeing a decline is sales, there are For Sale signs and foreclosures EVERYWHERE. Reality is this - Scottsdale is dying. When you can get into a restaurant in Scottsdale on any night of the week, including Saturday, WITHOUT a wait - you know things are bad. Wake up and smell the Starbucks - while they're still open for business!

Yoski said...

The Miami market is flooded with $50-$125K foreclosed slum properties that were bought for $250-$400K just 2 years ago. We have a 5 year supply of new condos and another 5 years in the pipeline scheduled to hit the market in the next 15 month. Prices are in free fall right now. Not too many knife catchers out there from what I can tell. Places are reduced by 50+% from peak and still linger around month after month. It's most pronounced in the hood where the crime rate is sky high. Nobody that could possibly afford a house would want to live there. But even the nicer neighborhoods are taking a decent haircut.