As you can imagine, as the mother of five, I know a fairy tale when I see one. Consequently I recognized this one right away from the Arizona Republic: [Hat tip M.R.!] It was entitled U.S. Housing Market Worsens as Valley Improves. Like all works of fantasy suited to the minds of children, I recognized that this fairy tale needs pictures. So here is my illustrated version of their article:
Newly released data show that U.S. home prices fell their steepest in almost 15 years in February. And the industry got another shot of bad news when sales of existing houses plunged in March by the largest amount in nearly two decades.
The news was better here in the Valley, where the housing market actually began to show signs of life in March.
Oops I mean:
The Phoenix-area median house price of $265,470 continues to run above the U.S. figure, and March existing homes sales in the area increased over the January and February totals.
Or rather….
Any improvement in the market is welcome, because there are more than 50,000 houses posted for sale on the Arizona Regional Multiple Listing Service, which covers mainly the Valley.
Or perhaps…
And this isn’t even "The End."
I saw the same article and couldn’t believe my eyes. These are the reasons that the news is better in the Phoenix market, and we’re showing signs of life:
“The Phoenix-area median house price of $265,470 continues to run above the U.S. figure”
Are they saying higher prices means that we’re less exposed to the bubble? Phoenix normally runs under the national median, so doesn’t that mean we have farther to fall? I’m not seeing the good news here, help anyone?
“March existing homes sales in the area increased over the January and February totals.”
Was the author expecting sales to be lower during the “spring selling season”? I really can’t believe they’d print this and treat it like it was unexpected. Maybe they should run a headline “The sun rises!”
It would appear Phoenix’s little brother is having similar problems….
Tucson now ‘extreme’ buyer’s market
Number of homes for sale the highest in 12 years
http://tinyurl.com/3aonlr
Yes, this seems like one of the sillier examples of spin on local real estate in the Republic. Perhaps the staff is working on an extensive series on the uptick in mortgage defaults and Metro Phoenix’s near limitless potential for more defaults. Maybe this was a half-hearted attempt to balance their coverage for the 2 + 2 = 7 folks.
Russ-
I can see the line of thinking:
More defaults = more REOs = more listings = greater choices for buyers = wonderful time to buy
So come on in, the water’s fine!
Lantzem-
I loved this quote:
Usually “working our way through” would imply some kind of inventory reduction, when in fact the inventory has been increasing by the week.
I guess it’s “all in the eye of the beholder.”
Thanks for the Tucson article…
I find myself being pressured into buying a house right now in Tucson. All of my friends think I’m crazy for renting a 1 bed apartment… but I think they need the head check.
I live by myself w/ a very minimalistic approach to material things. I want a “sustainable”, green or “net zero” home, not some 2200 sqft home stucco toothpick house. My reasoning is simple:
The “modern” constructed home is considered a 20 year home. By 20 years until major renovation and/or repairs are nessesary. Back in the 50’s most homes where considered 30 – 50 year homes. Why in the world would I get a 30 or 40 yr mortgage on a home that won’t last long enough to even see the day when its paid off.
Furthermore, I would need to furnish this McMansion. I make good money here in Tucson, about douple the median wage ($26K). I don’t know how the majority of people that make LESS than I do, afford to furnish these giant homes… Well I do they just borrow, spend and borrow more.
Utilities… I mean its dammed expensive to heat and cool these poorly built McMansions. I just don’t see the point in heating and cooling a 2200sqft space when its only me. (FYI – A 1000 sqft place in Tucson proper costs MORE than the McMansions on the outskirts…)
That aside; I’m just astonished that home prices are what they are. $220K for what? A peice of junk box that is 5ft away from some retard next door. Oh, Oh Where can I sign up for that incredible deal (sarcasm)? It just makes me crazy!
I’m sorry about the rant. None of my arguments make sense to my pals that repeat; “homes are always a good investment”, “if you keep renting, you have no equity!” “blah, Blah”. While some of them make sense, I just think these homes suck and are barely worth 1998 prices. Appparently… I’m the retard.
Dustdevil-
There’s a lot of renters who are going to “laugh all the way to the bank,” and try not to cry for friends on the courthouse steps.
All the “retards” who were saying the world was round in 1491 probably took a lot of guff too.
Dustdevil-
I completely agree. Why is a crappy stucco box with the trim falling off worth more 10 years later than when it was new?
We are renting from a “Floplord” who couldn’t sell his spec home here in Tucson, for pennies on the dollar. I am planning on asking him to extend our lease. If he declines or wants to increase our rent, we can just move down the road to the next house.
We are socking away all the money we save each month (~$700 vs. buying the same house) for a hefty downpayment once things return to “normal”. If you can call it that…
I’m curious … where did you hear or read this?
Yeap Bed time for bonzo is alive and well?
Anthem AZ is seeing tremendous amount of vacant homes and now forclosed on property.
Del Webb-Pulte are great spin masters, they lured buyers with the idea of more then one way out (I17) and hometown America, what it is turning out to be is broken promises and (one way all right) a one way ticket to the poor house?
I think housing used to be affordable but growth or inflation can have a compounding effect on property taxes, insurance, energy, labor costs, etc.
People say growth is good, well ok.., seems it’s become a requirement for survival.
Arizona is lucky to have such a good economic outlook.
Checking SOLD numbers on the last day of the month as usual.
Sold – 4798 Properties Found
I wonder if we would cross 5K this month and we have 3 more hours to go. Thats 1K less than March. The worst April so far!
Meanwhile Actives are at 52533
So we did cross 5K. About 700 were reported just before midnight.
Sold – 5482 Properties Found
Still less than 2001
Phxagent-
Thanks as always for checking for us- even with the additional sales, it’s obvious April was a bust.
Thanks for sharing this good one.