68% of home owners in metro Phoenix have negative equity (Maricopa: short sale, real estate)

[_Charles_]

Originally Posted by BabsJohnson

I've got to run over to 12th. St. and Bethany to see what's for sale. I'm buying rentals in decent areas with my savings. This is sure better than interest that Chase or Wells Fargo pays. My retirement income is better than when I worked. If my central Phoenix neighborhood gets any worse than it is, I'll move to a different house. I could just rent the one I live in and buy a really nice house in a better area with a huge mortgage. Think of the tax deductions on a primary residence to offset the tax liabilities on the rentals.

North of BH up to Maryland and between 12th and 7th - that area.

[BabsJohnson]

That's a very nice area with flood irrigation and Madison schools. That's an area I wouldn't mind living in. Thanks for your information Charles.

[_Charles_]

You are most welcome Babs. That area has been my home since the 80s. And I really, really like it.
You will not be dissapointed.

[Finger Laker]

Originally Posted by slackjaw

Yup.

It doesn't even have to be decades, if you bought before the big runup in prices and didn't use the equity to buy other things you are likely just fine. You saw the value of your home become double what you owed on it, then saw it come back to where you where when you started.

This is absolutely false

[khuntrevor]

The condo I sold in 1999 for 89K could be repurchased for 35K (85021). It sold for 84K brand new in 1984. It could have fetched 175K in early 2006.

[BabsJohnson]

If that condo burned to the ground I'll bet it couldn't be replaced for 35K. Doesn't make any sense, does it?

[Ponderosa]

Originally Posted by BabsJohnson

If that condo burned to the ground I'll bet it couldn't be replaced for 35K. Doesn't make any sense, does it?

That is true of the vast majority of homes being sold here these days, as well. My house is insured for replacement value and that is significantly more than I could sell it for.

[Captain Bill]

Originally Posted by BabsJohnson

If that condo burned to the ground I'll bet it couldn't be replaced for 35K. Doesn't make any sense, does it?

It actually does make sense.

• Public sentiment is still down so the "public" is not buying. That will continue for awhile until there is more positive news being reported than negative news, and the economy shows stronger recovery.
• The mortgage situation is overly tight, and unless one has an 800 fico score and no debt (slightly exaggerated, but close) one cannot get a mortgage.
• Almost half of the homes being purchased are for cash
• They're being purchased by landlord investors, Canadians looking for future vacation homes, and relocating families who need a home.
• The home prices overshot on the way down, just as they did on the way up.

[Howard Roark]

The key is J-O-B-S. As long as the high paying jobs continue to be outsourced only the low end houses will be a bargain. A bargain this year, a bargain next year, a bargain the year after...

[Captain Bill]

Originally Posted by Howard Roark

The key is J-O-B-S. As long as the high paying jobs continue to be outsourced only the low end houses will be a bargain. A bargain this year, a bargain next year, a bargain the year after...

That is not entirely true in my experience this year. My client just bought a $750k home that was a bargain. They were out bid on some of the previous bargains that were available.

Another client just bought a million+ dollar home for cash that was a bargain.

Neither of those homes will be available again for many many years.

People are paying cash for these high end homes, or a large down payment to get a conforming interest rate mortgage.

I agree we need more high paying jobs, but what you're not seeing is that high end homes are being bought by people who have the money and recognize the bargains.