We’ve often seen Jay Butler, head of Realty Studies at ASU, give overly optimistic reports on the state of Phoenix real estate. That’s why when Butler says that 66%-67% of Phoenix homeowners are underwater, you know it’s bad out there:
Will things be better any time soon? Watch what Fannie Mae is now doing to unload homes. Other lenders will have no choice but to aggressively reduce their inventory as well. What is that chance that Valley home prices are anywhere close to “stabilized”?