Good news Phoenix (Sun City, Surprise, Miami: sales, real estate market, foreclosures)

[snowflake13]

I just saw on the "Today" show that Phoenix is one of five cities that are starting to turn around for the better, in regards to real estate ...hopefully it lasts.

[westcoastbabe]

That is great news....Looking to relocate there by the end of this year going into 2011...Maybe you can provide some insight for me...Rumor has it that the Phoenix area is mainly known for it's service jobs, not professional jobs... Just started researching the job market out there...Coming from NC, it seems to me that more opportunity would be there as opposed to where I am coming from , which is North Carolina...Anybody beg to differ.

[miamiman]

Originally Posted by snowflake13

I just saw on the "Today" show that Phoenix is one of five cities that are starting to turn around for the better, in regards to real estate ...hopefully it lasts.

I wonder what standards Today used to make that assertion.

The real estate market here is absolutely terrible. It will take a LONG, LONG time for full recovery.

[sh9730]

Miamiman,

While I agree that a link to an article listing the "Today Show's" criteria would have been helpful. It would have been equally helpful for you to provide some data or at a minimum personal experiences to bolster your view that the real estate market is "absolutely terrible". Such broad statements are not helpful without backup.

I have a post a few down this page that actually shows on some levels things may have stabilized, albeit with some risk of another downturn. But I posted information....not unsubstantiated opinion.

[roosevelt]

Originally Posted by westcoastbabe

That is great news....Looking to relocate there by the end of this year going into 2011...Maybe you can provide some insight for me...Rumor has it that the Phoenix area is mainly known for it's service jobs, not professional jobs... Just started researching the job market out there...Coming from NC, it seems to me that more opportunity would be there as opposed to where I am coming from , which is North Carolina...Anybody beg to differ.

If no one is manufacturing anything, where is the money going to come from? Fast food, beauty shops and bagels are not going to save the economy.

[adolpho]

I saw some screaming good deals in Sun City. Less than 60K for a house built in 1961 on a large lot, close to golf. Taxes 567 per year? I think some people will jump on that.

[snowflake13]

Originally Posted by miamiman

I wonder what standards Today used to make that assertion.

The real estate market here is absolutely terrible. It will take a LONG, LONG time for full recovery.

I suppose it would be helpful if I gave more details....
On the segment they had a Real Estate expert that frequents the show often for her advice on Real Estate across the country, Barbara something. Barbara had a specific criteria that allowed her to come to choose the cities that are "on their way to recovery".
Her criteria is as follows:
Affordability
Low rate of Foreclosures in the area
Home price appreciation, according to the Natioinal Association of Realtors
Strong Job Market & Low unemployment

I am sure some people on here are going to really disagree, especially from judging on the past year or two. Though really the segment was about what will be happening here in the next year. So in regards to affordability if people can afford the homes in the area, they will be purchased. The median home price is $144,000, the statistic provided was that 85% of Phoenix's population can afford a home that price. Also if there are thousands upon thousands of foreclosures she said that they begin to pile up and not offer the opportunity to get homes sold. She had a statistic that 1 in every 150 homes were in foreclosure. In regards to the home appreciation she said it was because prices are beginning to come up again. Lastly, with employment there are lots of jobs to be had in Phoenix, whether they are specific few fields...they are still jobs and that is a sign of a healthy economy. So heres to hopin'!

[aoeu00]

Originally Posted by snowflake13

Her criteria is as follows:
1. Affordability
2. Low rate of Foreclosures in the area
3. Home price appreciation, according to the Natioinal Association of Realtors
4. Strong Job Market & Low unemployment

Though really the segment was about what will be happening here in the next year. So in regards to affordability if people can afford the homes in the area, they will be purchased. The median home price is $144,000, the statistic provided was that 85% of Phoenix's population can afford a home that price.

The only one I agree with is possibly #1. #2 is laughable. There will probably continue to be more foreclosures in the next couple of years "still". #3 is laughable again. #4 is a joke.

All this based on what this chick thinks is going to happen? She has no credible data. Where'd she get 85% of the population can afford a home?

Just some round figures.. assuming you put 10% down on a $144k home. That's about a $130k mortgage loan. If you got a 30 year fixed loan at say 5%, that's about a $700/month monthly payment. You should probably be making at least $15/hour. This assumes the person/family has good credit, has the 10% to put down, and is willing to buy that home in whichever neighborhood it's in. This also assumes you do not have to support a family.

In my opinion, that chick's blowing more than just smoke out her behind.

[Ponderosa]

Originally Posted by aoeu00

The only one I agree with is possibly #1. #2 is laughable. There will probably continue to be more foreclosures in the next couple of years "still". #3 is laughable again. #4 is a joke.

All this based on what this chick thinks is going to happen? She has no credible data. Where'd she get 85% of the population can afford a home?

Just some round figures.. assuming you put 10% down on a $144k home. That's about a $130k mortgage loan. If you got a 30 year fixed loan at say 5%, that's about a $700/month monthly payment. You should probably be making at least $15/hour. This assumes the person/family has good credit, has the 10% to put down, and is willing to buy that home in whichever neighborhood it's in. This also assumes you do not have to support a family.

In my opinion, that chick's blowing more than just smoke out her behind.

#1, affordability, is unquestionably true. Homes have never been more affordable here.

#2, foreclosure rate, Rate is high, but is half of what it was a year ago. Remember she is talking signs of recovery not recovery or happy days are here again.

#3 Appreciation, is hardly stellar. But median values have been rising slowly for months. That's better than most markets in the US right now.

#4. Job picture, She's smoking something. Maybe she is looking at the PHX rate and saying that is a lot better than some cities. But for us here jobs seem very hard to come by. And really #4 is the key right now. The local and the national job picture has to improve before 1,2, &3 will make a big difference.

There should have been a #5, sales. Sales are brisk on the foreclosures with strong investor interest. Still, jobs are the major obstacle atm.

[SOON2BNSURPRISE]

Things will improve when an area has jobs to feed the masses. Who cares if I can buy a home in Surprise for less than $100,000 if I don't have a job to pay the mortgage I don't buy the home. I tried that before and now my sister is living there and has taken over the place. Lucky her.