68% of home owners in metro Phoenix have negative equity (rent, mortgage)

[Boompa]

Originally Posted by mjd2k

Captain Bill, who is buying these places? If its mainly investors or snowbirds, then that doesn't help much (IMO)? However, if there is competition for HOMES, thats a good sign.

At what price per square foot? probably less than construction cost.

[Captain Bill]

Originally Posted by mjd2k

Captain Bill, who is buying these places? If its mainly investors or snowbirds, then that doesn't help much (IMO)? However, if there is competition for HOMES, thats a good sign.

My clients are mostly relocations, with some snowbirds, a few investors, plus a few who are selling and moving up or downsizing.

Snowbirds actually do help. Remember that they buy furniture, home furnishings, cars, gas; hire landscapers, pool servicers, house cleaners, painters, and pay taxes. And when they're here they bring a lot of business to restaurants, and entertainment establishments.

[Captain Bill]

Originally Posted by Boompa

At what price per square foot? probably less than construction cost.

The price per square foot varies with the property, whether it's distressed, or a regular sale, custom home with view lot and lots of expensive amenities, or tract home; and the condition.

Recently a home we purchased was $230/sf
Another $171/sf
Others are in the $80-90/sf range.
One was 65/sf
Two buyers currently looking at homes in the $90-100/sf range and 100-125/sf range.

So it's all over the map from $50k homes to over $1mil.

The areas of the above range from the Gilbert Seville area (Circle G Seville), Las Sendas (top of the hill), other Gilbert homes and Chandler.

And yes, everything is less than construction cost.

[PheenixJobless]

Due to the problems in the local economy, many are looking to get out while they still can. It's understandable, and the people who keep trying to hold on are doing so for no reason.

[khuntrevor]

And if they bought in 2002, 2003, 2004, 2005, 2006, 2007 and put less than 25% down their best option would be to mail in the keys and let they foreclosure start to work its way off their credit scores now, as opposed to two years from now.

[artvandelay]

Originally Posted by Valley Native

Now, wait a minute. Before you blame the banks (which are there to make profits), we also need to look at some of the people who were foolish enough to get themselves in the messes they are currently in. These potential homeowners agreed to the terms they were presented, but many of them defaulted on their loans and just walked away.

I agree that the lenders weren't completely innocent (the ARMS/sub prime mortgages were ridiculous) ... but the ones who signed the papers shirked their responsibility. They share a large part in contributing to the economic downturn.

It isn't a shirking of responsibility, unless you squat in the house or destroy it. You have the legal right to vacate your home and return ownership to the lender if you fail to pay. You have known consequences for doing so, and you deal with them.

[artvandelay]

Originally Posted by _Charles_

Wishful, thinking, playing with numbers and denial in general will not change the reality. It will be a few years before the real estate market in AZ recovers. And hopefully we will not return to the faux prosperity and bubble madness of the past when it does.

I think that a bubble is exactly what we're going to see in the coming decade. Underpriced homes gobbled up by cash-rich investors, driving prices higher than fundamentals dictate. I don't think it will be quite the same madness, but do believe it will be an ongoing pendulum.

[EnicAZ]

One also has to consider the cutting back of government funding for the housing market. It is at an all time high right now, and the direction can only go lower.

[_Charles_]

Originally Posted by EnicAZ

One also has to consider the cutting back of government funding for the housing market. It is at an all time high right now, and the direction can only go lower.

You are correct - additionally, due to the looming fiscal crisis driven by the ballooning federal deficit; the tax deduction for mortage interest will be phased out.

[whodiman]

Originally Posted by _Charles_

You are correct - additionally, due to the looming fiscal crisis driven by the ballooning federal deficit; the tax deduction for mortage interest will be phased out.

Then the USA will be like Canada...err sort of.