"Brutal" and "Perfect Storm". Arizona's fake housing-based economy spinning out of control as real estate market crashes

Everyone in Arizona glad they listened to idiot realtors on commission these past couple of years?

But what about all the jobs! What about all the immigrants! What about the fact they're not making any more land! What about the 365-days of golf!

Sorry. Something called gravity has now taken hold. Buckle up. Arizona housing prices are going to crash right back to pre-speculation inflation-adjusted 2001 levels, and might not even stop there. And the general Arizona housing-based economy will go into depression levels soon. When you build your fake economy on one fake industry full of fakes and fake promises, and then that fake industry blows up, things get real ugly, and that ain't fake.

Thanks to Doom for the great (and ugly!) charts. 17 month supply of homes in Phoenix. Ugly. I guess there aren't 21 reasons to buy homes today in housing-crash central Arizona.

Housing worries generally optimistic Valley experts

"Brutal" and "perfect storm" are some of the descriptions local economists now use to describe economic conditions in Maricopa County.

"I think this will be a brutal year," said Dennis Hoffman,an Arizona State University economist who helps guide sales tax forecasts for the state.

In an interview, he said "I think it has a lot to do with the fact that our local sales tax revenues are tied to this new house-new car phenonomen, decorating the house, doing maintenance and repairs and adding new carpeting, furniture and fixtures."

Economist Elliott Pollack reiterated that the housing market is a serious worry because there are so many houses on the market and lending standards have become tougher. Also the housing slump could slow migration into the state because homeowners in other states can't sell their houses to move here, he said.
"We especially have a perfect storm in the housing market," he said.

Local reality show exposes housing woes of the rich

The Landrys say they think viewers will warm up to their subjects for courageously airing their financial woes in public, something many in their social stratum consider the greatest taboo.

“There are actually a lot of people at the Mahans' economic level who are facing those same foreclosure fears now, but they cover it up,” said John Landry, a retired architect who now works as a real-estate agent, “so nobody ever knows.”

Many sellers slash prices to sell homes

A Chandler man slashed his price by $60,000 to sell his home so he and his wife could move to Ahwatukee.

An east Mesa women accepted about $25,000 less than her original asking price even after installing carpet, remodeling a bathroom, upgrading the swimming pool and adding a $7,000 hot tub and a $2,000 shed.

Their tactics weren't extraordinary in the ongoing housing downturn, where prices are falling by double-digit percentages in some cases.

"Realtors need to have a discussion with sellers because appraisal value and market value are two different things now," she said.