Well the banks are getting some interesting medicine now. A lender that I meet with regularly told me she had 2 loans she was working on that hit some unexpected bumps. They were on purchases of bank owned properties that did not appraise for the value of the home. The “winners” of bidding wars excitedly dashed off to the bank after winning a bidding war……..only to find out they don’t appraise for what they bid. And now the bank can’t sell them for that price as they can’t get financing.
Wow. Is it a sign the market is in fact very close to the bottom? Here in Phoenix we have had the prices plummet to near depression era levels in parts of the city. The far west valley and the far east valley have been particularly hit hard.
During the depression prices dropped up to 65%. I am regularly seeing price drops of 40-50%, and occasionally 60%. Yet the economy is not in that bad of shape. Here in Arizona most of my buyers are coming from Canada and paying cash. Where else can you buy a 3300 square foot home for $210,000 that was built 2 years ago? What a bargain. How much farther will this go? It can’t go much farther down!
I can easily find the previous price paid for any home currently on the market and thus determine the price drop. If you are interested in a particular home and want to know how much of a price drop there has been just give me a call or email me. I will pull the records for that home and let you know. I am always happy to help.
Marc Brodeur, REALTOR
1-800-300-0263
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Wow. That is interesting. Maybe the bottom is near after all and I shouldn’t wait to buy.