(This was posted at another site on July 6, 2008)
Just how bad the real estate situation is in the PHX area...
Not looking for sympathy here at all. Just reporting the facts. This is rather eye opening I think.
We bought our home a little over 3 years ago. This was about 9 months before the housing boom hit its peak here in the PHX area. We bought the home as a HOME to live in and raise our family, not necessarily as an investment. Although this is always a consideration when anyone buys a home.
We signed the papers to build a new home in December of 2004. The purchase price at that time for a 4 bedroom + den, 2.5 bathrooms, 2 car garage was 260K. By the time our home was completed and moved into (June 2005), the same model was selling for a STARTING price of 300K. This was the price before upgrades.
We had our house appraised 9 months after we moved in because we were refinancing our 2nd for a better rate. The house appraised at that time for $350K. This was a conservative number as many of our models were selling in the $370K-$390K range at that time.
About 2 years later this is where we stand. Every 4th house in our neighborhood looks vacant. You can tell by the weeds in the front yard. Every 4th house has a for sale sign. No houses are moving.
How much are people ASKING for our model? 190K is about the average. 190K and they still arent selling. This number of 190K is HALF the price of what houses were selling for about 2 years ago.
The unfortunate people that bought at the peak have lost 50 percent of the value of their home. Many are just mailing their keys in and leaving. They would rather take the hit on the credit, then wait it out for years until they get back to even.
Unfortunately I dont think we have seen the worst. I really feel that the real estate crises, coupled with gas prices, is going to bring our nation's economy to its knees within the next 18 months.
I know a lot of people have been saying this. But I really dont think that people realize just how bad the real estate situation is.
It will affect everyone. Not just those with houses.
Wildcat Coach is online now Report Post Reply With Quote
Just how bad the real estate situation is in the PHX area...
Not looking for sympathy here at all. Just reporting the facts. This is rather eye opening I think.
We bought our home a little over 3 years ago. This was about 9 months before the housing boom hit its peak here in the PHX area. We bought the home as a HOME to live in and raise our family, not necessarily as an investment. Although this is always a consideration when anyone buys a home.
We signed the papers to build a new home in December of 2004. The purchase price at that time for a 4 bedroom + den, 2.5 bathrooms, 2 car garage was 260K. By the time our home was completed and moved into (June 2005), the same model was selling for a STARTING price of 300K. This was the price before upgrades.
We had our house appraised 9 months after we moved in because we were refinancing our 2nd for a better rate. The house appraised at that time for $350K. This was a conservative number as many of our models were selling in the $370K-$390K range at that time.
About 2 years later this is where we stand. Every 4th house in our neighborhood looks vacant. You can tell by the weeds in the front yard. Every 4th house has a for sale sign. No houses are moving.
How much are people ASKING for our model? 190K is about the average. 190K and they still arent selling. This number of 190K is HALF the price of what houses were selling for about 2 years ago.
The unfortunate people that bought at the peak have lost 50 percent of the value of their home. Many are just mailing their keys in and leaving. They would rather take the hit on the credit, then wait it out for years until they get back to even.
Unfortunately I dont think we have seen the worst. I really feel that the real estate crises, coupled with gas prices, is going to bring our nation's economy to its knees within the next 18 months.
I know a lot of people have been saying this. But I really dont think that people realize just how bad the real estate situation is.
It will affect everyone. Not just those with houses.
Wildcat Coach is online now Report Post Reply With Quote
