The housing implosion seems to be deepening (Phoenix, Surprise: loan, homes)

[MotleyCrew]

Arizona Bear, I hope you find a home soon. Prices are dropping but then I noticed that mortages are now 6.5%. Seems like a wash, or maybe a rat race. Cash buyers are benifiting, but with the tight lending market, those wanting in, still have a hard time buying.

[SOON2BNSURPRISE]

MotleyCrew, I was thinking that 6.5 is a good rate. I know that some were getting homes for 1% on ARM's before the boom ended, but didn't they have to pay more later on when the loan reset to? Our loan is 6.35% and we are very happy with that. Wish that rates were at 5% or less but with our current rate we are comfortable. Then again in 15 years or less, 10 if i can swing it, we will retire that debt, and could care less what is happening with interest rates.

[Finger Laker]

i think the foreclosures are really skewing everything - the neighborhood comps that will relate to your value are a lot of foreclosed properties right now - banks are really only interested in getting rid of the property

i did read a report that shows inventory is beginning to shrink and the foreclosures are stabalizing a bit ........ if and it's a big IF, both keep up this way things should start to turn - get the banks out of the equation and it will keep things from crashing as severe

it's kind of fun when you get to economics how something pretty arbitrary can create so much havoc and really create it's own spin

banks & appraisers overvalued homes and were willing to put up loans that exceeded real values (not smart lending to put up 120% LTV on a home that has just doubled in value..........) - without restrictions people who are not savvy go for it, after all they can pay down their high interest debt with a tax deductible low interest loan - the market cools, the economy follows, life situation changes and people start defaulting

so now you get foreclosures - banks just look to sell and cut their losses (which are severe since they extended over LTV and value has dropped) - since they are just offloading property it lowers the values even further for all other homes, shifting their LTVs and making it harder for people to sell

so now you have voluntary foreclosures and short sales coming into the mix

more losses for the banks - so they want to restrict lending, making it harder to refinance and get into a better loan or buy a home

but that's cool, since the gov't is going to come in and provide an incentive to first time home buyers and encourage the banks to loosen up their lending since the values are so low and its good to fill the inventory - under the hopes that this time around the cycle won't happen again

[GilbertMom]

All just part of the plan that was put in place when they changed the banking, credit card and bankruptcy law(s) in 2000. If you remember, it was the first thing the Republican Congress worked on with the banking industry and the Bush Administration.

Banking was also the first industry to go off shore after 9-11. I guess they could see the handwriting on the wall.

Banks don't own your mortgages anymore, "Sovreign Wealth Funds," i.e., Saudi Arabia and UAE, do!

[movin'on]

However, on a positive note...

Neighborhoods farther out with higher-end housing developments are an exception to the fringe trend.

· The median home price in the Mesa ZIP code 85207 climbed 17.7 percent, to $365,000.

· The median price in north Scottsdale's 85262 ZIP code, home to high-end golf developments, increased almost 7 percent, to $1.1 million.

Real Estate Prices Are On The Mend

And here is a tool where you can see what your own zip code has done. In mine there was no drop between 06 and 07...

Real Estate - Phoenix Arizona Homes - azcentral.com

[trudawg]

I have been waiting patiently to buy a home, and i was thinking of buying in Jan just a couple months before my rate on my ARM is set to adjust on my Michigan home that I still own and rent. The value of that home has dropped 30% so it is a brick and my plan is buy here in AZ and let the MI house forclose. My credit rating has been creeping back up, but it will be where it needs to be by the end of the year but Its still "NOT THaT BAD" so I've been thinking of jumping into the market now, motivated by how low theses prices have dropped, that and my creepy ass landlord.

Should I wait to see just how low they can go??

[markas214]

Originally Posted by trudawg

I have been waiting patiently to buy a home, and i was thinking of buying in Jan just a couple months before my rate on my ARM is set to adjust on my Michigan home that I still own and rent. The value of that home has dropped 30% so it is a brick and my plan is buy here in AZ and let the MI house forclose. My credit rating has been creeping back up, but it will be where it needs to be by the end of the year but Its still "NOT THaT BAD" so I've been thinking of jumping into the market now, motivated by how low theses prices have dropped, that and my creepy ass landlord.

Should I wait to see just how low they can go??

Walking away isn't free, we'll leave the morality issue out. Since that Mi house is not your primary residrence be prepared to pay taxes on it when the loan is written off.

[ArizonaBear]

Originally Posted by MotleyCrew

Arizona Bear, I hope you find a home soon. Prices are dropping but then I noticed that mortages are now 6.5%. Seems like a wash, or maybe a rat race. Cash buyers are benifiting, but with the tight lending market, those wanting in, still have a hard time buying.

To be honest:

I do not sweat it anymore......when the time is right----------that is when I will buy

[Beena]

ArizonaBear, is Realtor.com updated daily? I was told that it pulls data from a server that is only updated once a week....early Monday mornings. Do you see daily updates on there because you mentioned that you check it daily.

Thanks!!

[ArizonaBear]

Originally Posted by Beena

ArizonaBear, is Realtor.com updated daily? I was told that it pulls data from a server that is only updated once a week....early Monday mornings. Do you see daily updates on there because you mentioned that you check it daily.

Thanks!!

It may only be once a week as you suspect.

Still; between it and zillow.com, I can make educated guesses.