Moody's predicting 17.8% price collapse in Phoenix home prices

[LadmoFan]

Good advice on the credit score. It makes it so much easier to purchase a home at a reasonable rate.

You are also right about location. My current home is on the "wrong" side of town as the locals have decided living on the northeast side of town is the "better" location. Not that it makes that much difference as with a population of 30,000 it doesn't make much difference. The whole town is nice. LOL! But due to where our house is located, we will not pull as much sales value for our home due to location.

As to Phoenix, I am still leaning towards the east side of town as it is allegedly a better location to live. I am not looking at Ahwautukee (sp?) as I have been in the area and did not like it. Also, I hear it is not as good of a location as the east side.

I have found a couple condos I like, two near Tempe and one near Paradise Valley. Scottsdale is still in the running as local residents voted to support education.

LadmoFan

[jendestefano]

Okay - once again - talk about a generality! Phoenix can not be lumped into one number to represent the entire city and surround areas. Lets look at the details. Some areas are still appreciating! The Multi million dollar home market is very strong, and population is increasing with a slow down in building permits. It's good old economic when demand catches up with supply we will return to our normal appreciation. In areas that are investor central, yes the values have tumbled. Let's look at the common sense factor - why on earth would someone pay $195K base (no upgrades) for a new 1200sf home in Casa Grande when they could buy a new 2000 sf home in Surprise for the same money? Why would someone pay $300k to live among industrial trash when they can spend $300K and live in Scottsdale? These are just economic examples of supply and demand. So of course the over priced homes have fallen because there was never real demand to warrent their prices. At the same time, the homes that were in areas that could justfy the price are increasing. Our home has appraised for 15% more the it did a year ago. Investors thought they were smarter then the actual homeowners. They thought that as long as you buy, you will make money - anywhere. Not so, if the commutes are bad, the area is not developed, and costs more then a closer community with more ammenities, then of course the value is not real. We invest, and yes we have experienced a dip, however it is from something that was never real to begin with. [ Moderator Cut]

[jendestefano]

The West side has some good school districts and great neighborhoods. Honestly east/west it is all the same - really. This city has grown so fast that you could be in glendale or mesa and not tell the difference.