Phoenix MLS Predicting Lowest Median September Price in Nine Years (prices, versus)

[Fumari]

I have a friend who purchased a "mcmansion" and he is paying well over $400 a month right now for SRP.

[MN-Born-n-Raised]

Originally Posted by Fumari

I have a friend who purchased a "mcmansion" and he is paying well over $400 a month right now for SRP.

I am paying cash. But I don't want a home bigger than 3000 sq foot because of higher taxes and the cost of electricity. 2000-2500 sq foot is all I want.

I once owned a big SUV. When gas was $4 a gallon, it was PAINFUL to fill that thing up. It's a matter of time before the cost of power goes up. Also, taxes can also go up a lot in these uncharted times. So I don't think I'm alone in looking for a smaller monthly outlay.

[Ponderosa]

The McMansions also have the ugly factor working against them. I don't know about all of you, but the housing "canyons" of two story boxes built in the late 2000's are not where I would want to live energy costs or not. Maybe they make good rentals though.

[MN-Born-n-Raised]

Originally Posted by Ponderosa

The McMansions also have the ugly factor working against them. I don't know about all of you, but the housing "canyons" of two story boxes built in the late 2000's are not where I would want to live energy costs or not. Maybe they make good rentals though.

I personally like the roof lines and the interesting curb appeal. @ 3000 sq foot, that isn't huge by any means. But when they get too large, they look like a "Garage Mahal". When you are north of 5000 sq, ft, then you have in the "starter castle" territory.

[Ritchie_az]

A place way out there, like Goodyear for example, can add an extra $5,000-7,000 a year alone if someone was forced to live there.

Um, I live in Goodyear. I was not "forced" to live there... I gladly choose to. As far as "$5,000-$7,000" a year more to live here? I mean, I suppose if I lived in a downtown condo and biked and light-railed everywhere. But how much would a downtown condo the size of my place cost? And is that the life I want for my family?
$7,000 a year more? That's $135 more per week! That's actually more than I spend in gas in a week and is somewhat close to the amount I spend in gas every two weeks.
The actual amount I spend "more" living out in Goodyear is $2,000 - $2,500 annually. But I don't have a grocery tax (like Phoenix). I purchased a nicer home in a nicer neighborhood for the money than I could have "in-town". Certainly that makes up for the $2,000 - $2,500 a year.

I'm not saying that distance to work (or utility costs, etc) should not be considered, because they should. But (much like your predictions) the "extra" cost if one lived (or "was forced to live") in Goodyear is way off.

I've saved a lot of people money with my honest appraoch

By "a lot of people" you mean the one client you did have (before you turned his business away)?

As likely as you are to be "saving someone money" it is just as likely you are costing him or her money. And it is most likely that, in the long run, either way, it won't make a hill-of-beans difference.

[MN-Born-n-Raised]

With ARMLS showing continually falling home values, these extra costs can add insult to injury. On the falling home values alone, we continue to recommend people wait 6 to 9 months to see how bad it gets.
Let's hope something can get going in the job market.

With ARMLS showing continually falling home values, these extra costs can add insult to injury. On the falling home values alone, we continue to recommend people wait 6 to 9 months to see how bad it gets.
Let's hope something can get going in the job market.
http://www.fotosearch.com/bthumb/BDX/BDX006/bxp239446.jpg (broken link)

With ARMLS showing continually falling home values, these extra costs can add insult to injury. On the falling home values alone, we continue to recommend people wait 6 to 9 months to see how bad it gets.
Let's hope something can get going in the job market.
http://www.fotosearch.com/bthumb/BDX/BDX323/bxp58941.jpg (broken link)
With ARMLS showing continually falling home values, these extra costs can add insult to injury. On the falling home values alone, we continue to recommend people wait 6 to 9 months to see how bad it gets.
Let's hope something can get going in the job market.

[EnicAZ]

I appreciate the responses. It is good for people to hear a diverse set of opinions before making a major decision in a struggling market. August ARMLS numbers have already been showing major price declines, coordinating with the decline of activity since the buyer tax credit is no longer there.

September numbers are looking even worse. I am concerned that attempts to try and get the job market going, are falling by the way side. This is an essential component in a city with spread out communiting costs, for example in Goodyear where $5,000-7,000 extra is spent each year having to drive to get to employment centers. This can easily add up to $50,000-70,000 in 10 years, or $150,000 to $210,000 in a 30 year loan. It is nearly the cost of interest payments on a mortgage.

If we all hang in there together, at some point we will see a stabilization in housing prices. It looks as though it's going to be a while though.

[Ritchie_az]

August ARMLS numbers have already been showing major price declines...

Please post that data, because one user posted that information already and it showed nothing of the sort.

[EnicAZ]

The ongoing price declines are in the ARMLS system, and a report with this information will be released in the next couple of days. Who was it that posted it? The Arizona Republic also had an article a couple of days ago showing major price declines, with information from Information Market.

[Ritchie_az]

It was rjrcm in a similar (but different) thread.