Lending The Ticker

Phoenix housing market hit by unprecedented plunge in demand

Goodbye cash buyers


ZeroHedge is taking aim at plunging home values in Phoenix. Is the blog kicking the on-again, off-again housing market while it's down?

No. There is a reason Phoenix is special selected for unique scrutiny, the blog explains:

"The Phoenix housing market has a special place in the heart of housing bubble watchers: together with Las Vegas and various California MSAs, this is the place where the last housing bubble was born and subsequently died a gruesome death which nearly brought down the entire financial system."

Here's what's going wrong today, in a nutshell:

Cash purchases have been running at an unusually high level but this has been on a declining trend over the past year. In Maricopa County the percentage of properties recording an Affidavit of Value and purchased without financing was 25.0% in May 2014, significantly down from 32.3% in May 2013. We consider 7% to 12% the normal range for cash buyers, so mortgage-lending still has a long way to go to get back its normal share of the market.

Source: ZeroHedge

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