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With our special series and that is open house all week we have been crisscrossing this country -- reality check on real estate today's -- Phoenix Arizona located in south central Arizona -- the largest city serves as the State Capitol.
But these days it's no Phoenix residents in Phoenix and -- the city of Phoenix in -- it's more like plummeting right now July home -- Hitting 815 year -- down more than 25%.
From just a year ago that's according to -- the MDA.
Data collected joining us now real estate broker.
-- interior -- outdated -- in honor of Scott's cell based real estate brokerage firm on the development properties in data.
That's the question is the price depreciation is happening right now in the city of Phoenix it seems that values continue to fall.
Yet we are seeing again sales activity continue to fall whenever -- price stabilization.
Well Sheryl I think we're gonna see that in the next few years right now were we ever were hurting a little bit right now our big issue with our.
Our economy is that the last twenty years we've been a growing economy.
And you know with that you know we counted on people moving here for our -- economy to keep growing.
So we've got a lot of job losses in that industry and -- gonna have to see some more jobs turnaround artist for this to turn around -- They have the jobs -- -- in real estate in Phoenix I mean that's still in those those jobs -- to be coming back to the state are -- -- a lot of speculators coming in from other states and the Phoenix trying to find.
Smoke and good deals hot deals or not they may be looking for bargains that are too good to be true right now.
Well absolutely -- when we have a lot of investors that are coming here.
And we have a lot of job market this coming here -- -- -- reason for people to come here our taxes are -- that's a lot of tax incentives that the cities offering to these jobs.
-- for big business -- to come to Arizona.
You know -- one issue if there is an interesting study that was done about the Phoenix area that is that you really need.
A blue chip company.
Who has offices there to get the jobs to really under under -- put a nice threshold under the housing market.
Are you seeing it's sort of patchy in areas around Phoenix where there's not a blue chip -- -- and the house prices have really plunged vs where you have an Intel.
Up let's say for example and you see the house prices coming up.
Well we definitely have that issue here at our house our house prices are going to be a little while the for the come up obviously.
But we have a lot of companies on the horizons that are moving here.
-- a lot of opportunity for -- -- happening.
Well but I guess I have to go back to the issue of -- of -- -- I've talked on the -- and that is the appraisers.
When things were hot and good and wonderful in the Phoenix housing market the appraisers became the villains.
When the housing market collapse they were accused of over valuing the homes because they were basically making a cut a profit off of it.
Now you're telling us -- the appraisers are now becoming the villains once again but for the opposite reason in Phoenix why is that.
Well -- -- -- scared.
They'd be affected the market a lot when images to prison home at any price that you -- offering in back in the -- people were lined up to offer.
-- over what the asking price is worse so now what the appraisers are doing is the kind of running scared and they're lowering.
They're coming -- the offers and prices in -- that are the very lowest distressed prices in the neighborhood so there's a perfectly good home.
Normal cell they're dragging the prices down on those cells just to compete with that just to show that they're doing their jobs basically.
-- -- Now have you seen prices as far as the -- come across all sectors is -- -- ultra luxury homes at a luxury to the middle and lower income or some pretty much just in one sector as being hardest hit right now.
Well we had to lower income was hit very hard a lot of those homes are built in the spread the outside areas of the valley.
And so a lot of investors have come in -- that happens so that has -- -- -- -- have a right now are higher in the market is what's hurting because we do have a very high end market.
Especially has got -- Paradise Valley area as and we just don't have the Jumbo loans that we need.
To being offered to us at this point for people be buying in this price range where we had dinner with a walk away factor a lot of reports national news reports have shown us that people were just walking away based head jobs.
Then have to walk away from the properties but they were still doing it because there are so underwater there was no reason to stay in the home with -- -- happening.
Absolutely it's still happening and -- it's -- it's a little bit unavoidable when you're in a neighborhood that example would be paid 250000 dollars for your house.
And your neighbors are all walking away -- you're still the one in there and you know that it's gonna take years for year few years your house to come back to that value.
People are starting considered as a business decision and I and it's completely unethical but when everybody else is doing it around you kind of can eat -- little bit on your conscience.
Dana -- in my development properties out of Phoenix Arizona Dana thank you very much for participating.
And our open house there is appreciate it having on the show and folks Springfield Massachusetts Jack we started there on Monday Tampa Florida at check.
With there on Tuesday LA checked.
Just went to Phoenix.
We have one -- stop and that's tomorrow and our open house series we are wrapping up.
Our special series with Kansas City, Missouri and you don't want to miss -- we're gonna have another perspective for -- in another city in this great country of ours.
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