Nice to see an article on housing in the Republic NOT written by the lazy Catherine Reagor, who would have added the usual unchecked assortment of "it's OK" quotes from her builder buddies... Maybe they finally fired her?
Long article - read the whole thing, I hit highlights, including the sickening offer of 7% commissions now to realtors from builders. Think the realtor will give any of that to the buyer? Someone's getting screwed.
Interesting to watch the situation in Arizona decay right in front of our eyes. Cannibalism is next I think.
Home builders, neighbors offer stiff competition
Following decades of growth measured mostly in new prisons and mobile homes, any cooling hitting the Pinal County home market is a matter of perspective. And from the existing homeowner's perspective, it hurts.
After last year's record 18,749 single-family new-home building permits issued by Pinal County and its municipalities, 2006 is on pace to see 16,571 permits issued. Although at first blush that may seem to fit the perception of a cooling market, it still means more new homes in a single year than the county saw during some entire decades of the 20th century.
But to get new residents into all those new homes, home builders have recently started slashing prices and offering perks from free pools to cabinet upgrades.And existing residents, from the investors determined to still make big bucks to overleveraged homeowners who need to sell at a certain price, are feeling the fallout.
As a result, resale-home sellers are grudgingly cutting prices by tens of thousands of dollars, and their homes are still sitting unsold for half a year.
Santan-area resident Karen Marsh put her 2-year-old home on the market in April and has seen only a handful of people walk through. "It's just so frustrating," Marsh said. "We finally quit doing open houses because we would have to go out for the day and no one would show up."The market is pitting Marsh against her neighbors. There are six other homes for sale on Marsh's block alone.
Scott Helsel never figured on being a real estate agent.But Prudential Arizona Properties has been lucrative for him. Especially with home builders in the Maricopa area so desperate they're offering real estate agents double or triple commission rates to bring them clients, knocking prices down by tens of thousands of dollars or tossing in free pools and other upgrades.
July 05, 2006
Every man for himself!!! A housing panic is now officially underway in Phoenix
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9 comments:
Keith where DO you get those pictures - you made my day with the Vulture eating his prey!!!
And to think the Summer in Phoenix has just begun. . ."LA without a beach and glitter" is how most of us in California think of Phoenix. . .a good place send the old folks.
Ironically, builder D.R. Horton has slashed the price of the new 2,200-square-foot home they want from about $300,000 to $215,000, cheaper than the smaller, older home they're trying to sell, and offered a $10,000 down payment if they finance through the builder's preferred lender.
"They wouldn't drop the price $80,000 if they weren't desperate," Angel said. "That tells me something."
They hope to sell within the next few weeks to avoid losing their $5,000 deposit on the new home.......
It has begun, watch out for falling prices.
..the house they bought in 2004 for $135K ... they've lowered their asking price $30K to $229K and can't find any buyers.
They have a chance to get out before the whole thing goes under and they're stuck b/c they want to make $94K for doing nothing?
Anyone feel sorry for these greedy a$$holes? Not me. Adios amigos!!
Just need this to spread, I am waiting in the Denver area to buy but I have not seem many builders dropping prices yet. I have seen some on condo developments. Anyone know a good site for bubble housing info for the Denver area?
if they bought for 135K in 2004, then a fair price now would be 163K with a reasonable 10% appreciation per year.
the sellers are idiots because they think they should benefit from the greater fool theory, instead of recognizing true market conditions.
the builders can sell for much less since they made money at the old amount (pre-bubble) and they probably already had the land and permits for their new construction.
and to mark in san diego, you're an idiot. funny that you can slam 2 other major metro areas in one sentence. and check your facts. the median age in maricopa county, which includes phoenix, is 33.
Wake me up in 5 years........then I'll buy a foreclosed condo conversion in Scottsdale......for 25 to 40% of its high in July 2005. Back to sleep.....
To the guy slamming Mark in San Diego, so what if the average age in Maricopa County is 33. With a weather-beaten leather face from the hellish heat there, you might as well be "old folk", who can tell the difference? Oh wait, those with age spots and wrinkled skin who wear their pants backwards with a tatoo over their ass must be the thirty-somethings
Actually wasn't slamming LA. . .
at least they DO have a beach and some Hollywood glitter. . .
median age in PHX = 33. median age in SD = 33.
mark and the other anon - idiots.
BTW, median income for both is $22,251 and $22,926 respectively. so it would seem that the PHX folks are the same age with a lot more money.
twits.
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