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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: KM who wrote (45260)	11/29/2005 10:20:16 PM
From: Proud Deplorable	Respond to of 306849

Phoenix Faces 'Simple Reality' Of Overbuilding The Arizona Republic has the latest on the Phoenix market. "The median sales price of an existing home in metropolitan Phoenix is about 20 percent, or nearly $44,000, higher than the national median price for a previously owned home. 'Historically we've been below the national median, but we've rapidly moved ahead,' said Jay Butler. 'It raises issues of affordability. The simple reality is we can't sustain the pace we've been at,' Butler said." "There are indications that the new-home market is past its peak. Builders are not raising prices as much as they were at the beginning of the year, and they are offering more incentives to buyers and higher fees to real estate agents." "Price increases have fallen 43 percent, though the latest monthly average increase of more than $6,300 still isn't sustainable in a market where affordability rules, R. L. Brown said. The number of new homes permitted in the area fell by a fraction last month compared with October of last year. Year-to-date, Brown said, 54,041 permits had been issued, slightly more than 5 percent ahead of last year's record pace." And a letter to the editor takes the paper to task. "Your editorial Friday 'Scofflaw landlords pay taxes,' suggesting that the $200 tax being avoided by owners of renter-occupied homes is fueling the rapid rising home values is fallacious." "The real culprit is lending institutions that are accepting inflated appraisal values of homes as being the legitimate equity values. Are you all too young to remember the real estate bubble in the late 1980s that sunk the Phoenix real estate market?" "If our banking laws would put a 10 percent annual cap on market appraisal increases, we would stop the carpetbaggers from destroying the orderly progress of the legitimate real estate market. Why doesn't The Arizona Republic do some real investigative reporting and get out from behind the desk?"