The American Dream goes awry on the outskirts
by Kaushik Sirkar, Chandler AZ REALTOR
Chandler Arizona Real Estate

In the Phoenix metropolitan area, what parts of town have been hit hardest to this point in the current downturn?  Yup, towns on the periphery of the Valley.  Anthem way up North.  Places much too close to LA to be considered part of Phoenix on the Westside.  And places such as Maricopa and Queen Creek in the South and East.  Read this article in today's Arizona Republic to get a feel for the trouble buyer's in Phoenix's most distant suburbs (specifically Queen Creek in this case) are currently facing.

Dreams of doubling, even tripling of their homes value within a few years at current (late 04, 05 price appreciation rates).  Interest only mortgages with the rate fixed for a ridiculously short period of time.  Teaser rates and their low payments having people purchase amenities/extras that would put them way over budget with a normal budget.  Anticipating a short commute before the highway is anywhere near completion.

Hindsight being 20/20, what were people thinking?  Did they really think homes would go up in value 100k every year?  Did folks not realize that they would NEED their home to go up by a few hundred thousand once the teaser rate on the ultra-fancy negative amortizing loan disappeared?  Or were people just swept up in the Euphoria of it all...the Euphoria generated by the media?

Remember, its never as good as the media might suggest nor is it ever as bad as their worst gloom and doom portrayal....