Caution! Home buyers! Possible price correction coming to Phoenix! (Chandler: fit in, foreclosures)

[john3232]

I know a man who buys distressed properties, repairs them and quickly flips the homes for a profit. Usually the distressed properties are those found in West Mesa or certain areas of Tempe. Homes are bought for a 100 grand and 40 grand or so is put into repairs. The man sells the remodeled homes for a tidy profit

However not long ago he purchased a rather expensive home in Scottsdale which needed a lot of work. He figured he could make a quick 75-100 grand on the turnaround.

The Achilles heel in all this is the home needs to move fact so the man can pay his contractor and others involved. He can't have a house sit for very long .

The home will be ready for the market soon. It'll be interesting to learn what happens.

[MN-Born-n-Raised]

Originally Posted by john3232

I know a man who buys distressed properties, repairs them and quickly flips the homes for a profit. Usually the distressed properties are those found in West Mesa or certain areas of Tempe. Homes are bought for a 100 grand and 40 grand or so is put into repairs. The man sells the remodeled homes for a tidy profit

However not long ago he purchased a rather expensive home in Scottsdale which needed a lot of work. He figured he could make a quick 75-100 grand on the turnaround.

The Achilles heel in all this is the home needs to move fact so the man can pay his contractor and others involved. He can't have a house sit for very long .

The home will be ready for the market soon. It'll be interesting to learn what happens.

The mood is changing by the week. My guess is he will be working for free (flipping it for $0) or lose some. You win some and you lose some. Report back please. I'd like to know.

[john3232]

Originally Posted by MN-Born-n-Raised

The mood is changing by the week. My guess is he will be working for free (flipping it for $0) or lose some. You win some and you lose some. Report back please. I'd like to know.

Will do!

[Ponderosa]

50% price drop coming.

[asufan]

Originally Posted by Ponderosa

50% price drop coming.

Oh God, please. I will buy 100 if this happens. Lets see if you're going to be correct

[MN-Born-n-Raised]

Originally Posted by Ponderosa

50% price drop coming.

Predicting a 50% drop in real estate will happen makes your glass all the way empty. As I've said before, "you are what you google".

[Tall Traveler]

Originally Posted by Ponderosa

50% price drop coming.

My guess is 10% increase coming.

[Ponderosa]

Originally Posted by Tall Traveler

My guess is 10% increase coming.

Eventually, I suppose. Short term pain is on the way though. I would not be buying now and I think most people too are taking a wait and see. REITs are going to have to sell assets to cover losses and we have many rentals in the metro now owned by these big investors. It's a bad combination.

[Prickly Pear]

I hope this discourages flippers. I’m someone who’d like to buy but flippers tend to get to things before I do. Then I can’t afford the flipped product. As such I’m priced out of most of the market. Buying would allow me to have some permanence in a neighborhood (have I mentioned how much I hate moving? I’m 25 and this year and a half has been the longest I’ve gone without moving since I was 17. Before this I was moving 2-3x a year) while stabilizing my costs whereas renting puts me at risk for rental increases on a regular basis. A year and a half ago or so I was living in an apartment that wanted a $200/month and some change increase in rent before re-signing. Obviously I didn’t agree to such nonsense for the same exact unit. I’m lucky my landlord is much more lenient than an apartment management company but I cannot live in this house forever.

I know there are plenty others like me in this boat. I’d rather have a “fixer” product than a “fixed up” product at a cheaper cost. I’m sick of everything being remodeled and upgraded from IKEA with a big increase.

[Tall Traveler]

Originally Posted by Ponderosa

Eventually, I suppose. Short term pain is on the way though. I would not be buying now and I think most people too are taking a wait and see. REITs are going to have to sell assets to cover losses and we have many rentals in the metro now owned by these big investors. It's a bad combination.

Well few are going to be selling because no one wants to have people traipsing through their house and no one wants to show tons of houses.

Lots of factors pro and con for prices and here are some that come to my mind:

1. If it's determined that high heat and sun result in reduced covid-19 spread, you'll see more demand in Arizona.
2. If the treatments render the virus as something like the flu as recent tests of the Trump drugs suggest they do, we can return to work and things will slowly go back to normal.
3. If this thing gets worse and the economy is shut down longer, then that will negatively impact prices for everything including houses.
4. Lowered interest rate create higher demand

to conclude, there could be a short reduction or a significant increase depending on how things play out.