While the average 40-hour monkey has seen his or her home value drop in the past 12 months, those of you in Phoenix Arizona may have more reason to cry uncontrollably.
August home price data was released and the great citizens of Phoenix Arizona have been hardest hit.
According to CNN.com:
The hardest hit of all 20 cities on a year-over-year basis was Phoenix, where prices plummeted 30.7% during the past 12 months.
What’s going on in Phoenix real estate?
“Now we’re paying the price,” said Joan Dodd, 36-year Phoenix real estate veteran.
Phoeniz home prices see largest drop.
“Prices rose unrealistically in 2006 here in Phoenix due to too many investors buying homes that had no plans on living in the homes.”
“Non-owner occupants,” as they are called, are investors that purchase real estate for the sake of renting the homes out waiting for time and rent to build their equity for them or they are looking to “flip” a property and grab bargains that need some renovation work in hopes of selling the property for much more after the work has been completed.
Dodd’s clients, like many scared home owners across America, are asking her to call the bottom of the market. Many real estate investors and average home owners would love to know how bad is bad and when this will turn around.
Impossible to know for sure, and Dodd agrees.
“The only time you know the bottom has occurred is after you see the market up-tick,” said Dodd.
“Possibly sometime in mid-2009.”
From bad to worse
Keep in mind, the numbers released today are August numbers. The data doesn’t include the recent credit meltdown.
I know huh?
The recent higher jobless reports, the lay-offs, the credit freeze, the huge decline in the value of your 401(k) balance. None of this ugliness has been reflected yet in the numbers because we just haven’t had enough time for numbers to be compiled and released yet.
It’s coming though. That should make your holiday season something to look forward to.
Has it hit your block?
It’s one thing to read about the data and it’s an entirely different thing to be a part of the data.
Has the bursting housing bubble hit you personally? Are you still in your home?
Maybe it hasn’t hit you personally yet, but statistics show it has hit someone in your family or down the street or a few cubicles over. Someone you know has been hit.
What’s the worst case you’ve seen so far?
