HP favorite target "Third Avenue Lofts" in Scottsdale Arizona now going for more than half off

HP'ers recognize this complex as one of the most obvious bubble-crazed towers of stupidity in Phoenix. So check out this firesale: Here's a 1000 square foot unit that old in bubble-madness 2006 for $895,000, now (trying to go for) only $395,000. And yet likely STILL overpriced based on its P/E ratio. Good god what fool (or fraudster) paid $895,000 just a few months ago? Someone without a calculator (or a realtor) most likely.

And how about those "21 reasons" again? HP has the one reason that really mattered: It's the P/E stupid. It will always be the P/E stupid. Not the pro athletes. Not the golf. It's the P/E stupid.

Here's what I wrote in October 2007 after doing the math, which might have seemed nuts to realtor-believers at the time:

"Seriously, these hilariously overpriced bubblerific units will see drops of 50% to 70% when all is said and done. Just do the math. It's the P/E stupid. It'll always be the P/E stupid."

And now, of course, it's happened.

I'd love to see the (lazy and REIC-ad-supported) Arizona Republic, maybe even Rolodex-of-Realtors Catherine Reagor, do a piece on the foreclosure madness at the Third Avenue Lofts. Every unit would no doubt have story - mortgage fraudsters, failed flippers, Scottsdale posers, cash-back-at-close con artists, realtor investors, and some pretty dumb sheeple who bought at the peak without any regard to the fundamentals.

$395000 LESS THAN 1/2 PRICE - LUXURY SCOTTSDALE, AZ CONDO

A FORECLOSURE STEAL!!! $455,000 PRICE REDUCTION FROM ORIGINAL PURCHASE PRICE OF $850,000 IN 2006 FOR QUICK SALE! QUALITY UPSCALE, MODERN, 1 BEDROOM (1072 TSF) EXECUTIVE LOFT WITH 24-HOUR SECURITY, FULL-SERVICE CONCIERGE, UNDERGROUND/GATED PARKING AND MANY FINE AMENITIES

Welcome to the Third Avenue Lofts Lock Box Rail of Desperation in Failed Flipper Central Scottsdale Arizona

Thanks Chris at mortgage-lender-reviews.com for sending in this great lockbox from hell picture.

I KNEW I had to start HousingPANIC after seeing tiny little apartments advertised at $500,000 to $3 million. When I mean tiny, I mean as in 600 square foot studio apartments for a half mil. Seriously.

Check out this 834 square foot 1-bedroom for $719,000. $862 a square foot. Or if you financed today (jumbo 30 at 7%) it'd be $4800 a month, plus $1000 a month condo fee (gag gag) and taxes of $1000 a month, we're at $6800 a month for a FRICKING ONE BEDROOM APARTMENT THAT'LL BE LUCKY TO RENT OUT FOR $1500 A MONTH!

6800 - 1500 = 5,300 loss per month. Or a 78% fall to get back to reality.

Today 25 of the 88 units are for sale, you just know it's a building full of f*cked flippers and failed mortgage brokers, and the development now reeks of desperation and despair. Watch them race each other to the bottom now - last one out is a rotten egg! Anyone want to bet most of these units go to foreclosure?

Seriously, these hilariously overpriced bubblerific units will see drops of 50% to 70% when all is said and done. Just do the math. It's the P/E stupid. It'll always be the P/E stupid.

Man, did people lose their minds during this housing madness. Some days it's mindblowing.