strange things in Maricopa (bank owned, for sale, foreclosures)

[gregandvicky]

Just moved here. Morrison homes is selling off their remaining lots to another builder and leaving Maricopa. '
Shea is finishing their Tortosa and leaving Maricopa.'
Ryland is building their less expensive homne from one development in their more expensive development.

Whats going on?

[ibarrio]

Did you research the market (Maricopa) before buying? All indicators have not been good. I think the situation in Maricopa has made national news.

here is one article on the area
The Boomtown Mirage

[61scout80]

Originally Posted by gregandvicky

Just moved here. Morrison homes is selling off their remaining lots to another builder and leaving Maricopa. '
Shea is finishing their Tortosa and leaving Maricopa.'
Ryland is building their less expensive homne from one development in their more expensive development.

Whats going on?

Its quite simple. A lot of people flocked to maricopa for its benefits, and the price of homes was artificially inflated. The inflated prices enticed builders into town to build new homes as fast as possible.

Now that the market has changed many of the people who overpaid for their homes are walking away, or can't afford them and getting thrown out. This caused a lot of nice, newer homes to be bank owned foreclosures. The banks want these houses sold as soon as possible, and there are less eligible buyers on the market. So now the banks are forced to compete with each other to entice the buyers to their properties, and the sellers can entice the buyers by offering lower prices.

So what do you think this means for the new home builders? It means they have to compete with the desperation of the banks, and the builders can't keep their profit margins high enough. So the new home builders are now pulling out of the saturated market, or putting a hold on their construction. There are a few that are still going strong, meritage is doing very well.

Don't fret too much though, things have been looking up. home sales have been going up since January, construction is underway on a large shopping center and I have been noticing a lot of people unloading Uhauls. Two of us from work recently bought in Maricopa, and there is a third looking. In the last few weeks he has called on several homes only to be told "we already have multiple bids on this property". Personally I think the bottom has been hit in Maricopa.

[Beena]

Very nice analysis Scout! I tend to agree with you.

In July of 2006 I saw a 3900 sq ft brand new home advertised in Maricopa for 264,900, fully upgraded. I was amazed. Could it ever go lower? Just saw the same 3900 sq ft model advertised last weekend in Maricopa for 190,000. Wow. If that isn't bottom I am not sure what is.

But if you bought at 264,900 you are facing a pretty serious financial dilemna.

[azjack]

"In July of 2006 I saw a 3900 sq ft brand new home advertised in Maricopa for 264,900, fully upgraded. I was amazed. Could it ever go lower? Just saw the same 3900 sq ft model advertised last weekend in Maricopa for 190,000. Wow. If that isn't bottom I am not sure what is."

The house model asking price has dropped almost 30% in two years. My interpretation: this is a rapidly declining asset that will lower my net worth by purchasing it. Peak oil and recession can only further lower prices in Maricopa (and elsewhere).

I really would not fret about "multiple bidders." They are often fictional. Who would get in a bidding war with tons of foreclosures around?

[gregandvicky]

Originally Posted by ibarrio

Did you research the market (Maricopa) before buying? All indicators have not been good. I think the situation in Maricopa has made national news.

here is one article on the area
The Boomtown Mirage

What makes you think I bought??? I rented and will wait and see.

I only look stupid.

[altus2006]

Originally Posted by azjack

I really would not fret about "multiple bidders." They are often fictional. Who would get in a bidding war with tons of foreclosures around?

You got this right! Bidding wars-baloney.

altus2006

[61scout80]

Originally Posted by altus2006

You got this right! Bidding wars-baloney.

altus2006

Originally Posted by azjack

The house model asking price has dropped almost 30% in two years. My interpretation: this is a rapidly declining asset that will lower my net worth by purchasing it. Peak oil and recession can only further lower prices in Maricopa (and elsewhere).

I really would not fret about "multiple bidders." They are often fictional. Who would get in a bidding war with tons of foreclosures around?

care to enlighten me on why a listing agent would tell a potential customer calling about a house that they will not show the house that is listed for sale because it has multiple offers? That doesn't sound like a very effective selling tactict to me.

[MotleyCrew]

Actually the really low priced REO's here do have bidding wars. Hard to believe, but we are watching a few here in this neighborhood. Bank just wants them off the books. The other homes are moving but they have to be fairly low priced.

[altus2006]

Originally Posted by MotleyCrew

Actually the really low priced REO's here do have bidding wars. Hard to believe, but we are watching a few here in this neighborhood. Bank just wants them off the books. The other homes are moving but they have to be fairly low priced.

Bidding wars in Vistancia I can understand. But bidding wars in Maricopa is almost Saturday Night Live material.

altus2006