fountain hills real estate insanity (Phoenix, Scottsdale: sales, credit, loan)

[man4857]

Originally Posted by BIG CATS

Don't worry. Economists are saying this current bubble is worse than the last great recession. Expect PHX to once again be one of the hardest hit cities, and real estate will crash here hardcore once again. After this next recession hits, that first home will MAYBE be worth $180K. People are INTENSELY stupid and didn't learn from their last mistakes, and are once again buying what they cant afford. Banks are also once again lending to people they shouldn't. Subprime mortgages, anyone?


Realtors here are just as dumb as they are in CA. They KNOW the houses aren't worth that amount but are stupid enough to convince stupid buyers they are. I love watching realtors have to flip burgers when recessions hit. They deserve it. Greedy sellers and greedy banks are just as stupid and just as guilty, too.

I don't know how people could even fathom taking out a mortgage for a $400K home if their income is anywhere less than 125K and put 3-5% down!! And yet here we are.

[Finper]

Originally Posted by American Expat

So is your point that there are 2 houses overpriced for the FH market or the entire market is overpriced?


If that house wth built in pool/hot tub was around Kirkland/Woodinville, Wa where we live, it would be much much more.




Here's some insanity for you...ugly 2500 ft. house for $2.2M in Kirkland.
https://www.zillow.com/homes/for_sal...66_rect/11_zm/

Dam that's a ugly 2 mil house

[AZ Manager]

Originally Posted by BIG CATS

Don't worry. Economists are saying this current bubble is worse than the last great recession. Expect PHX to once again be one of the hardest hit cities, and real estate will crash here hardcore once again. After this next recession hits, that first home will MAYBE be worth $180K. People are INTENSELY stupid and didn't learn from their last mistakes, and are once again buying what they cant afford. Banks are also once again lending to people they shouldn't. Subprime mortgages, anyone?


Realtors here are just as dumb as they are in CA. They KNOW the houses aren't worth that amount but are stupid enough to convince stupid buyers they are. I love watching realtors have to flip burgers when recessions hit. They deserve it. Greedy sellers and greedy banks are just as stupid and just as guilty, too.

Originally Posted by BIG CATS

https://www.nytimes.com/2017/12/13/o...recession.html

When they refer to "global assets" they are talking stock/bond market. The market isn't going to be the sole reason for a crash and will correct itself (hello this week/last week), this isn't the 20s anymore we have protections in place. As interest rates go up and the "bubbles" will deflate reasonably or pop individually with minor effect on the overall market. Places like San Fran, Seattle, NY, and LA are going to be harder hit by bubbles (tech being a bigger thing to watch than anything right now) than lower cost of living places like us.

As for subprime issues, not likely. We cleaned up the major issues after the crash through laws and regulations, Fannie and Freddie do worry me with their reducing credit scores for what they consider subprime but it isn't a major concern overall. The average credit score of home buyers is above 745 which might be the highest it has ever been and the top reason for denials continues to be credit.

People have been going on about housing being back in bubble territory since at least 2012. Doom and gloom sells page views/ads.

[WSPHXPELON]

Originally Posted by BIG CATS

Don't worry. Economists are saying this current bubble is worse than the last great recession. Expect PHX to once again be one of the hardest hit cities, and real estate will crash here hardcore once again. After this next recession hits, that first home will MAYBE be worth $180K. People are INTENSELY stupid and didn't learn from their last mistakes, and are once again buying what they cant afford. Banks are also once again lending to people they shouldn't. Subprime mortgages, anyone?


Realtors here are just as dumb as they are in CA. They KNOW the houses aren't worth that amount but are stupid enough to convince stupid buyers they are. I love watching realtors have to flip burgers when recessions hit. They deserve it. Greedy sellers and greedy banks are just as stupid and just as guilty, too.

You finally posted something that I agree with!!

[locolife]

Originally Posted by BIG CATS

Don't worry. Economists are saying this current bubble is worse than the last great recession. Expect PHX to once again be one of the hardest hit cities, and real estate will crash here hardcore once again. After this next recession hits, that first home will MAYBE be worth $180K. People are INTENSELY stupid and didn't learn from their last mistakes, and are once again buying what they cant afford. Banks are also once again lending to people they shouldn't. Subprime mortgages, anyone?


Realtors here are just as dumb as they are in CA. They KNOW the houses aren't worth that amount but are stupid enough to convince stupid buyers they are. I love watching realtors have to flip burgers when recessions hit. They deserve it. Greedy sellers and greedy banks are just as stupid and just as guilty, too.

Not seeing anything like the runaway home prices we saw in 2008, home prices aren’t even at the levels they were at 10 years ago. Could a recession hit? Of course, is it likely to be real estate driven again? I don’t think so.

[Tall Traveler]

Originally Posted by BIG CATS

Don't worry. Economists are saying this current bubble is worse than the last great recession. Expect PHX to once again be one of the hardest hit cities, and real estate will crash here hardcore once again. After this next recession hits, that first home will MAYBE be worth $180K. People are INTENSELY stupid and didn't learn from their last mistakes, and are once again buying what they cant afford. Banks are also once again lending to people they shouldn't. Subprime mortgages, anyone?


Realtors here are just as dumb as they are in CA. They KNOW the houses aren't worth that amount but are stupid enough to convince stupid buyers they are. I love watching realtors have to flip burgers when recessions hit. They deserve it. Greedy sellers and greedy banks are just as stupid and just as guilty, too.

Disagree that Phoenix will be hard hit if/when the next housing crisis hits. Housing prices in Phoenix haven't even hit their 2006/7 peak. Contrast that with Seattle, Denver, and San Francisco with 60-70% increases from their peaks.

[yukon]

Originally Posted by American Expat

So is your point that there are 2 houses overpriced for the FH market or the entire market is overpriced?


If that house wth built in pool/hot tub was around Kirkland/Woodinville, Wa where we live, it would be much much more.




Here's some insanity for you...ugly 2500 ft. house for $2.2M in Kirkland.
https://www.zillow.com/homes/for_sal...66_rect/11_zm/

Why are you blaming realtors? They don't set the prices. The banks do, when they approve the highly inflated appraisals for loans.

[Burkmere]

Originally Posted by BIG CATS

Don't worry. Economists are saying this current bubble is worse than the last great recession. Expect PHX to once again be one of the hardest hit cities, and real estate will crash here hardcore once again. After this next recession hits, that first home will MAYBE be worth $180K. People are INTENSELY stupid and didn't learn from their last mistakes, and are once again buying what they cant afford. Banks are also once again lending to people they shouldn't. Subprime mortgages, anyone?


Realtors here are just as dumb as they are in CA. They KNOW the houses aren't worth that amount but are stupid enough to convince stupid buyers they are. I love watching realtors have to flip burgers when recessions hit. They deserve it. Greedy sellers and greedy banks are just as stupid and just as guilty, too.

GREAT! I'm hoping to pick up a home cheaper!!

[Mac58]

As an outsider looking in, knowing nothing about current lending practices, but having owned and sold a property in Stonegate neighborhood of Scottsdale around six years ago when the market had softened considerably from peak, I would say prices in that particular neighborhood have not gone up crazily. Not like Seattle, Portland, SF, Austin, LA.
What I consider the greatest threat to Phoenix metro real estate is the threat of water shortages should the Colorado River watershed go into prolonged drought over the next 10-15 years. All the water rights in the world don't help if a river runs dry. To read this forum, the other threat to QOL which would possibly impact real estate in Phoenix is the Urban Heat Island. Another 5 degrees increase in average summer high could make people seriously reconsider full time living in the American desert. Hello, Detroit! Here we come...

[goolsbyjazz]

Originally Posted by westcoastforme

$370 k for this?




1500sqft






https://www.realtor.com/realestatean...8_M10517-68698







$699 k for this? 2200 sq ft



https://www.realtor.com/realestatean...8_M23003-84921

I agree with you. The houses look decent, but the prices are a little inflated.