you would not believe the number of scottsdale for-rent listings that are $2500 per month or more. it is astounding. who can afford that, in particular with $4+ gallon gas, the employment picture, declining inmigration, etc?

yet another set of facts underscoring the notion that fundamentally, the real estate market is still way too high.

All MLS includes condos and townhomes. They are mostly single family though.

single family homes, for rent, correct?
Just driving around Tempe last week, it seemed I saw all the 201 For Rent sign/banners posted at apartment complexes.

M sent me some interesting data that I would have posted, except I didn’t want to do two Scottsdale posts two days in a row. Check out the number of rentals:

All MLS 8,261

Scottsdale 2,323
Tempe 201
Mesa 472
Chandler 373
Gilbert 294
Phoenix 1,783

I think the Population of Phoenix is about 1.4M, Scottsdale just over 200K, Mesa over 400K.

My best explanation for the number of rentals in Scottsdale is that there is less acceptance of market conditions in Scottsdale than any other Valley city. Owners either can’t or won’t accept price reductions.

The move has been good for the family,and at the moment, when I get homesick, I just check the weather back home in Phoenix. [My kids are laughing at their friends complaining about temperatures in the high 90s.]

With two college age kids of my own, I’m looking forward to January- the out-of-state tuition is a killer.

There are some great rental deals now in Austin. Sales are down, inventory up, foreclosures up, denial remains high. My neighbor is a developer who says that he and his investor friends are picking up land cheap with the intent to hold for five years, but I remain a cowardly fence-sitter.

A possible “event” or lock up in the credit markets.

Duad, glad you’re renting. If the credit crisis becomes severe enough houses will be dumped below already depressed replacement costs for those with cash.

Despite their margin went down from 30% the builders were asking even 2 y ago, the inflation and commodities prices will not allow building below certain price level.

This is of interest to me: I came to Phx end 2003 focused on new construction and never won a builder’s lottery (thanks God, I know) and in the end purchased a close 300k lot for custom home. By the time the plans were ready, I let the permit slip due to cost increases, this was the time of peak. I am astonished with the number of the listings in the community which btw start above $1mil (and there is the relation to this article) and where still comparable lots are offerd for multiple I paid: http://www.ancalahoa.org/listingpro/?action=list&start=10&order=2
Currently renting acceptable 3600sft house for $2400 on the other side of Taliesin.
Twist, maybe I will follow you to Austin, the oldest kid eyes the university there and will keep the lot for retirement.
Opinions welcomed. David

I suppose your $3M-5M goes further in AZ, and it’s a better commute if you happen to work in Phoenix.

Then strange as it seems, some of us like AZ better.

That said, paying that kind of money for a place that pricey in Paradise Valley [or anyplace, for that matter never made much sense to me.

Igor says, “no money”. Rub it in Igor. I suppose that’s one of the reasons I won’t be making a purchase like that. : )

1. Massive job lay-offs.
2. High number of re-sets in adjustable mortgages.
3. Tighter credit and lending standards.
4. Higher housing inventories.
5. Higher prices of necessary items (ie.fuel and food.
6. Higher foreclosures because of the items listed above.

Am I forgetting anything?
2. Increase in foreclosures due to job loss and higher adjustable rate

These two were spec houses. One was completed 1 year ago and the other about 6 months ago. The one completed 1 year ago went from 4.3 mil to about 3.1 mil today. The other one went from 5.3 to 3.9 today; that’s 1.4 mil. reduction in 6 months. No, they don’t look sold. But if one has sold in the last few days, I wouldn’t be able to tell since one is over 9,000 sq ft and the oppupant may be holed up in the luxury, completely separated apartment with its own 2 car garage in the back. Maybe he/she is in the lap pool or waiting by the helicopter pad for a trip to Saks. The point is that the level of stupidity, greed, and over consumption are off the charts. This isn’t new, but still revolting.

The home that I sold in 2005 in Gilbert was by Astante [Continental] who had a similar subdivision to mine off of Shea. My same model was $200K more up there, had a smaller lot, and you had to yell to be heard in the backyard from the traffic noise.

Mr. Twist and I decided that you must be paying the $200K difference for the chance to put a Scottsdale zip code on your return address, and it just wasn’t worth it to us. We weren’t feeling the magic either.

I lived in that area and worked there about 20 years ago. I’ve driven around there a bit in the last couple years, and I have yet to feel a magic “tingle” when I think of it or go through it.

Nothing wrong 85254 that I’m aware of… but “MAGIC?”
Maybe it’s like Lance Burton’s kinda “magic.”
Perception, entertainment and illusion.

Rental-home investors are coming back into the Valley real estate market, and this is a good thing.

When L saw this one, he pointed out to me that there are currently 8265 active rental listings on the MLS in the Valley.  Why would more wannabe landlords in the market be a good thing?

L’s comment:

Why doesn’t the Republic ask someone who at least owns rentals or has invested in real estate?

Sadly, knowing what you are talking about is not a prerequisite for writing for the Republic.

I will give thee Rs credit though that is an innovative idea to bring down months of supply over 1M

While it’s true that Scottsdale has always been able to command more for comparable homes located elsewhere in the Valley, there were a lot of folks during the boom who figured that a Scottsdale zip code made their little shack a million dollar luxury home. Then there were the folks with the luxury homes who thought they were multimillionaires.

Obviously many of them are having to rethink that.

Did your neighbors with the million dollar price drops ever sell?

(No reference intended or implied toward venetiancafe!)

Many other houses that are the same size and only 4 to 8 years old are listed from 1.1 mil. for a foreclosure to about 2.3 mil.

WHAT ARE THESE PEOPLE SMOKING??