Phoenix Metro Housing Market To Worsen

Inquiring minds are reading with horror a FoxPhoenixTV article on thier website entitled “Analysts: Valley Housing Market Will Get Worse” and asking, “How?”:

For four years now, we’ve been watching housing prices fall across the nation. It was starting to look like that trend might be over — but experts are saying it’s going to get worse before it gets better.

Here is the why:

he Phoenix metro area is expected to be harder hit than most other U.S. cities. Analysts say values will drop by at least 10 percent over the next year.

Right now short sales — where the bank is willing to sell the home for less than it’s worth and cover the difference — make up nearly 1 out of every 3 sales. In June, 21 percent of home sold were short sales — in July, the number rose to 28 percent.

The economy, worries about job security and challenges in getting a home loan are all contributing to the problem.

Just how bad is it going to be in California when the OC shadow inventory begins to show up in the MLS?


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