Californians screw up Arizona..

[OGShocker]

...again!!! (http://www.nytimes.com/2006/11/07/realestate/07land.html?ei=5090&en=22b43ceaff41373b&ex=1320555600&adxnnl=1&partner=rssuserland&emc=rss&pagewanted=print&adxnnlx=1162879113-MwS8uNgmlUo39ooqm4q7tA)

[Ziggy]

The boon is over..........
You should retitle the thread "Ballers" screw up AZ...... :p
Trickle effect is hitting some hard.

[Angry Inch]

Hopefully the "big one" comes soon and knocks everything east of California off into the Atlantic. :rollside:

[RitcheyRch]

Definitely an interesting article. Surprised to hear that people put money down on a home and then bailed on it.

[Jbb]

“the new ghost towns of the West.”......... :jawdrop:

[Cole Sanger]

Definitely an interesting article. Surprised to hear that people put money down on a home and then bailed on it.
My friend just did that very thing. Sucks, but he lowered his price on his house multiple times and it just didn't sell.

[RitcheyRch]

I have been looking at homes in Surprise and have noticed that a few homes have started lowering there prices.
My friend just did that very thing. Sucks, but he lowered his price on his house multiple times and it just didn't sell.

[Cole Sanger]

I have been looking at homes in Surprise and have noticed that a few homes have started lowering there prices.
That was the other problem my friend worried about before letting it go. He had other home builders (places he had gone before signing on the new house) sending him lower and lower quotes. Anthem near Florence lowered their prices by more than $40k in a couple of weeks. He didn't want to buy a house for $350k and it only appraising for $310k. Upside down makes no sense. I was actually looking at houses where he was, but I gave up. Figured if he couldn't sell his house, I probably wouldn't be able to either.

[Sleek-Jet]

“the new ghost towns of the West.”......... :jawdrop:
Talk about sensationalism... the glory days are past, but people are still building and buying, and selling houses. The builders we deal with are saying it's going to be an 18 month slowdown while everything sorts itself out, then should pick back up again, but we probably won't see the fervor we did here over the last couple years... which is a good thing.

[Jordy]

I know of a few home builders around Phoenix that are laying off 100's of workers. Things are definately slowing down in that department. A year ago they were having lotteries for lots in new communities and every lot would have a sold sign on it within the first day of the opening. All that started changing about 6 months ago. Lots more "AVAILABLE" signs on the lots, and even on homes. Used to be it was all different realtor signs on the houses when they were done, now I'm seeing more and more builder/broker signs. I know I've slowed way down because of it too. Oh well, it will all pick back up as it always does. ;)

[Dribble]

How are the Californians screwing things up? Seems more like the Phoenix builders over extended their inventory because they didn't properly forecast demand. Doh!!

[THOR]

Dont hate the beautiful people from Cali. Just hate the money. :cool:

[DSW]

California sux...

[SCUBA STEVE]

Definitely an interesting article. Surprised to hear that people put money down on a home and then bailed on it.
We did it early this year. We feared we would not be able to sell our current home and bailed, lost 6k but saved our sanity in the process. Plus we would have took a hit on capital gain. As of today you can buy a brand spanken new home bigger and better then my current home for the same cost. It makes no sense to sell right now but if I was able to buy new right now I would. It's a buyers market with out a doubt.
To make up for not moving we re-did our back yard to make living there more enjoyable. :p :cool:

[Jordy]

Seems more like the Phoenix builders over extended their inventory because they didn't properly forecast demand. Doh!!
Some are discounting homes in the neighborhood of $100K from what they were selling them for 6 months ago just to keep them moving. I have a cousin in the insulation business and it's funny, we've both gotten calls asking if we can sharpen our numbers up a bit now that things are slowing down. My response was "You guys didn't start paying me $10,000 a month for my generator when the market was good and now you want me to discount it???" My cost to do business hasn't changed and certainly hasn't gone down. Just an amazing mentality.

[Powerquestboy]

How are the Californians screwing things up? Seems more like the Phoenix builders over extended their inventory because they didn't properly forecast demand. Doh!!
How did the builders over estimate demand? Read the article, Investors from Cali were buying up homes like crazy and then putting them on the market. There was nobody to live in them! A fake demand was created by investors. The same thing happened in Vegas.
It will correct it self in time as more people move in to Phoenix. The only problem is for people who are over extended. Why buy in an up market and sell in a down market? The smart people with money in Phx are buying investments right now and not selling a thing! Lots of good bargains right now with tons of people that own 2 homes and cant afford either. Prices are coming down and people are willing to deal.

[SCUBA STEVE]

How did the builders over estimate demand? Read the article, Investors from Cali were buying up homes like crazy and then putting them on the market. There was nobody to live in them! A fake demand was created by investors. The same thing happened in Vegas.
It will correct it self in time as more people move in to Phoenix. The only problem is for people who are over extended. Why buy in an up market and sell in a down market? The smart people with money in Phx are buying investments right now and not selling a thing! Lots of good bargains right now with tons of people that own 2 homes and cant afford either. Prices are coming down and people are willing to deal.
Alot of new developments blocked out investors in mid 2005.
I do agree now is the time to invest if you can.

[Sandbar Mike]

It's Not A California Problem, It's A Fed Problem.
If The Fed Drops Interest Reates Again Like A Few Years Ago The Housing Market Will Be Back In Action.

[SCUBA STEVE]

It's Not A California Problem, It's A Fed Problem.
If The Fed Drops Interest Reates Again Like A Few Years Ago The Housing Market Will Be Back In Action.
Thats like saying they need to get gas prices under $1.50 again. :p

[disco_charger]

It's Not A California Problem, It's A Fed Problem.
If The Fed Drops Interest Reates Again Like A Few Years Ago The Housing Market Will Be Back In Action.
That's an interesting statement, because lower interest rates hurt people with cash, and reward people borrowing.

[Ziggy]

We just sold an M5 to a contractor in Phx. and I asked how biz was for him. he said he's still doing ok but didn't over-speculate like many others may have and not in the "hurting" catagory by any means.

[Ziggy]

That's an interesting statement, because lower interest rates hurt people with cash, and reward people borrowing.
Ain't that the American Way? borrow, borrow, borrow.........

[SCUBA STEVE]

We just sold an M5 to a contractor in Phx. and I asked how biz was for him. he said he's still doing ok but didn't over-speculate like many others may have and not in the "hurting" catagory by any means.
He should have went for the 7 seires. :) :p Unless he wanted speed.
I'll take either one!

[Jordy]

He should have went for the 7 seires. :) :p Unless he wanted speed.
I'll take either one!
The new M5 is retarded fast, and it's still plenty plush on the inside. I'd take it over a 745 for about a week until I got too many speeding tickets. Car doesn't feel like it's moving until you're running 100+ and it gets there fast. ;)

[Ziggy]

The new M5 is retarded fast, and it's still plenty plush on the inside. I'd take it over a 745 for about a week until I got too many speeding tickets. Car doesn't feel like it's moving until you're running 100+ and it gets there fast. ;)
Hard to have self-control in that car..... :eek:
This fellow got the nice ventilated seats and other goodies........some of the best seats I've ever been in.......comfy but hold you tight when blasting the twisties :rollside:
If you see it JP, its the Metalic Black with black interior.....probably still has our paper plates on it :)

[SCUBA STEVE]

The new M5 is retarded fast, and it's still plenty plush on the inside. I'd take it over a 745 for about a week until I got too many speeding tickets. Car doesn't feel like it's moving until you're running 100+ and it gets there fast. ;)
LMAO, I beleive it though. I need to be a little more realistic and stick with the Acura TL. :)

[Dribble]

How did the builders over estimate demand? Read the article, Investors from Cali were buying up homes like crazy and then putting them on the market. There was nobody to live in them! A fake demand was created by investors. The same thing happened in Vegas.
I did read the article. Here are some of the more salient points on which I based my opinion.
They have little choice. Sales cancellations among big builders, not just here but around the country, are running as high as 40 percent, double the rate a year ago.
Across the nation, new-home sales are down by more than 20 percent from their peak last year.
The influx of buyers from California, many of them individual speculators, was so strong that builders overestimated demand.
The builders were stupid enough and greedy enough and the speculators were equally stupid and greedy. This along with low interest rates and what seemed like a never ending boom with never ending escalating prices (which never happens) and you have what we have here today. A market gone bust.
The State of California and it's residents are about as responsible for this as they are for the rapid decline in the over inflated price of a Tickle Me Elmo toy.

[HocusPocus]

builders overestimated demand and constructed a lot more homes than there were people wanting to live in them
its always easier to blame someone else for a mistake, where these builders from california?? :crossx:

[Angry Inch]

LMAO, I beleive it though. I need to be a little more realistic and stick with the Acura TL. :)
I've seen video of a M5 pulling on a 355. Those things are stupid fast.
Here's one paired with a F430:
http://www.youtube.com/watch?v=0Z-Z9UutrJA

[SCUBA STEVE]

Is that 250 mph or KM's?

[Angry Inch]

Is that 250 mph or KM's?
At the end it said they were in sweden.

[SCUBA STEVE]

At the end it said they were in sweden.
I would have been impressed if it was MPH. :) :cool:

[77charger]

We went in sept to look at homes in the phx area in sept for a possible move due to wifes job.We knew the market was slowing down there alot but the sales agents all acted like it was still selling hot saying that they had 1 or 2 homes that were ready but lowered price and would probbaly sell right away if we didnt act.
We would have needed to sell our home first they said there were many options to move us in.Thing that would suck is i need boat and trailer parking space like i have now and the HOAS wouldnt allow that in new areas so if we do make the move looks like chandler area.(but it aint 100 percent and fading fast) :rollside:

[AZKC]

The wife works for a major builder down here and they reported negative 8 sales for October because of over 25 cancelations, she says the people are just walking away from their money :) And the layoffs are happening almost monthly. Out of Towners were flippin more houses than McDonalds flips burgers :yuk:

[79centurion]

Chandler has some good size lots for houses, and most houses that are 10-15 years old dont have HOA. I got a corner house in a cul-de-sac that is 1/3 acre. I bought just before the boom at 170K, and just apraised at 325k :)
Dan