Forbes Article Discusses Those Who Mistimed the Price Bottom of Phoenix Houses (Paradise Valley: best cities, real estate)

[azjack]

"By 2006, it was clear the Phoenix real estate bubble had burst. That's when both tract homes in the exurbs of Maricopa County and high-end condos in Paradise Valley began falling into foreclosure. And as prices dropped, homeowners panicked and unloaded their properties.

Some cities are better than others for trapped homeowners seeking sales. Yet those who jumped back in during 2007 badly mistimed the bottom. Phoenix prices are down 20 percent this year, according to the National Association of Realtors (NAR). The result? That second wave of speculation has resulted in scads of newly trapped homeowners."

ABC News: Best Cities for Trapped Homeowners

[twiggy]

Great!

[drb85650]

We're thinking about buying, but waiting another 6 -12 months.

[azjack]

What I found most interesting is the article's focus on post-2006 buyers. That is why I have warned several people whom I know to avoid making any potential buying decision based on how much lower the cost is compared to 2005-2006.

DRB, I am in the same boat, but my bearish outlook will have me seriously looking in 2 to 3 years. The best return on investment available has been to avoid buying an Arizona house because values have consistently dropped and show no signs of letting up. My old house (looking at same model, same subdivision) has averaged a $3,500/month value loss for 38 months. And avoiding losses is a tax-free event.

[barryhussein]

Originally Posted by azjack

And avoiding losses is a tax-free event.

[YAZ]

We just made an offer on a home.

Keep your fingers crossed for us...1700 sq. ft., atrium in the foyer, 4 car garage with a pool.

155k.

[twiggy]

I might grab up a couple in Maricopa for 10 to 15 dollars, do you think they'll go lower? lol

[azjack]

"I might grab up a couple in Maricopa for 10 to 15 dollars, do you think they'll go lower? lol"

You ought to hold out for $7.50, lest you find yourself underwater.

But seriously, I have read about some Miami, Florida mostly vacant "luxury" condos that would not cashflow at a purchase price of zero when their HOA and taxes are taken into account.

[Howard Roark]

Since option ARM resets peak in 2011 and 2012 I would not buy a house in Phoenix or California before January 2013. The only way I would buy my house is if it's my dream house at 1/6 of my net worth and pay it in cash.

[Captain Bill]

Originally Posted by azjack

You ought to hold out for $7.50, lest you find yourself underwater.

But seriously, I have read about some Miami, Florida mostly vacant "luxury" condos that would not cashflow at a purchase price of zero when their HOA and taxes are taken into account.

I'm thinking that I should stop buying houses now, and wait until sellers decide to pay me to take it off their hands.

But then I'd probably have to pay a higher price to get someone to take it off my hands!!!

And if I stop buying, how is that going to help our economy get back up?

Damn this is confusing. I just don't know what I should do.