Saw this on the tail end of a question on Trulia Voices this evening …
And we want to make sure we don’t pick a neighborhood that has been hit especially hard by the real estate bubble burst.
Hmmmm … might I suggest something in Fargo, perhaps? Because here in the Phoenix real estate market, you can’t really find a neighborhood that hasn’t felt the aftereffects of the run-up of 2005.
Those $350,000 homes for sale you’re seeing now in Scottsdale? Those were in the $500K – $600K range (if not higher) back in the day. Yes, Virginia, even fancy Scottsdale with all its Top Gear-worthy cars and liberal use of silicone has struggled to maintain value.
Maybe that’s not the point of such a request. Maybe there’s a reason other than trying to find an area that hasn’t declined massively in hopes it won’t decline in the future. Truth be told, that’s not a particularly safe bet. This is a market for the lower price points and has been for nearly two years.
Yes, there are sales taking place above the quarter-million mark. But no, that’s not where the bulk of the activity is taking place. Fewer buyers means less demand means more supply means continuing deterioration of prices. Economics 101.
Having said that … if anyone finds a neighborhood here that magically has been immune to the falling values of the Phoenix market, please let me know.