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Old 05-20-2007, 07:10 PM
 
162 posts, read 850,136 times
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Does anyone know why so many houses, that are only 1-5 years old are for sale? I'm wondering if they were never bought or leaving once the 5yr. termite contract up - or just wanted something different. Obviously there are various reasons people move, but so many of them are for sale it seems.
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Old 05-20-2007, 07:40 PM
 
647 posts, read 3,343,268 times
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In most new construction neighborhoods, you'll see a lot of turnover within the first couple years. Often people will wait until they've lived in the house for two years to list if they're making a local move b/c of capital gains tax. Also, during the housing boom, many builders made buyers sign a contract saying they wouldn't sell the house for at least one year after moving in. This was to avoid investors, but it didn't really help much. So many people hit their "one year" mark around the same time and list their houses. And of course often people just have to move for one reason or another. Like most cities nowadays, Phoenix is a pretty transient area.

I don't think the termite thing has anything at all to do with it...I've never heard of that being a reason someone would move.
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Old 05-21-2007, 03:00 PM
 
Location: gilbert az "move me to Boise"
341 posts, read 1,674,806 times
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All of the above - also there were so MANY investors that purchased properties here and now are trying to sell them - for instance, I know one investor purchsed over 30 properties in Queen Creek about 3 yrs ago and I heard atleast 6 of have already gone into foreclosure. So for us here - it was a lot of investors - looking for the next HOT spot. Most got out out on time but there are still some.
Also Motorola had quite a big layoff - used to be one of the largest employers here - over 25000 and they now do not even make the top 20 employers.
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Old 05-21-2007, 03:49 PM
 
2 posts, read 9,842 times
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Don't forget all the ARM loans going into their higher rates. People are trying to get out or refi.
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Old 05-23-2007, 10:59 PM
ejk
 
126 posts, read 595,044 times
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In our neighborhood, it's investors. Many of the houses for sale here are vacant.
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Old 06-02-2007, 12:27 AM
 
338 posts, read 1,626,179 times
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yeah like another poster said a lot of it is because of the ARMS, a lot of people are forced to sell their home because they cannot afford it anymore.

Also, a lot of people out here only stay in their home for 2-3 years, earn equity on it and then sell it and buy something better.
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Old 06-04-2007, 06:38 AM
 
27,381 posts, read 27,425,580 times
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I know of many areas where houses have been built and havent even sold, theyve been sitting vacant from day one. Here it is, two years already, and until prices become a little more realistic for us Casa Grande-rs they probably will remain sitting. Some of these homes are nearly half million dollars...and in Casa Grande, a person would have to be a surgeon or rocket scientist to afford that, in this small town!
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Old 06-04-2007, 06:40 AM
jco
 
Location: Austin
2,121 posts, read 6,456,071 times
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Quote:
Originally Posted by sunshinecities View Post
Does anyone know why so many houses, that are only 1-5 years old are for sale? I'm wondering if they were never bought or leaving once the 5yr. termite contract up - or just wanted something different. Obviously there are various reasons people move, but so many of them are for sale it seems.
I don't think this has anything to do with termites. Many houses here are new because our big boom was recent. I agree with the ARM loan comments, too.
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Old 06-05-2007, 07:43 AM
 
702 posts, read 3,154,392 times
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In my area (Green Valley) there are always many new homes for sale because it is a retirement community. People buy a house and then one of the two die and the remaining person usually wants to move back to where their kids live. There are 13,000 houses in Green Valley and 1,000 are listed "For Sale" at this time.
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Old 06-05-2007, 11:43 AM
 
Location: Kingman
16 posts, read 53,402 times
Reputation: 14
Yeah, I would not think that it has anything to do with termite warranty. Kingman, AZ had a lot of hype in the summer of 2005, and I think that new home builders overbuilt by probably 900 homes. For a town of 30K people this was a lot. Then of course we all had some pretty "Creative" lending going on. Creative lending being, "Ohhh this person can't afford this home, but I happen to have a program here that says they can". Now we have probably the highest forclosure count in a long time. I don't mean to be doom and gloom, but I believe that the market will drop for at least another 12 months or so. Good news for buyers I guess.
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