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Migration & Real Estate

By
Real Estate Appraiser with Accurate Appraisals & Consulting of AZ

For decades, Arizona has been one of several destination goals of illegal immigrants filtering their way into the United States by way of Mexico. The lure of jobs, as a means to earn money to bring other family members across the boarder, coupled with the benefit and assistance programs funded by the taxes of legal citizens, that only illegal immigrants seem to qualify for, have created a steady stream of boarder crossings.
[illegals.jpg]During the recent housing boom, a greater number have made Maricopa County, AZ their final destination, and recent news have estimated 12 million illegal immigrants live and work in the United States. The increase of illegals in the local population also helped fuel the housing boom, and now seems to be adding to the real estate and mortgage crisis.

There are no statistics, that I am aware of, on the direct impact or the numbers of illegals effecting the current real estate market. However, in 2007, Arizona foreclosures were up 566% from 2006 with an estimate of 10,000 or more vacant homes on the market, and a prediction of more to come in 2008. With the passing into law of the Employers Sanctions, which took effect January 1, 2008, more companies are laying off undocumented workers to avoid having their licenses suspended or permanently revoked.

These workers who bought homes are no longer able to pay their mortgage which adds to the number of foreclosures and abandoned homes. In addition, many who took advantage of assistance programs to purchase homes, did not have jobs or income to make their payments, and relied on refinancing, in some cases several times, to draw out the increase in equity during the boom.

Recently it has also been reported that several towns along the U.S./Mexico boarder have been gearing up for what they call a "Reverse Wave of Migration". With Arizona now being labeled as one of the toughest places for illegal immigrants, increases in deportations, and the employer sanctions, many illegals are expected to return south of the boarder. But migrant shelters and human smugglers are telling the illegal immigrants they need to go farther north into the United States for better wages and fewer Border Patrol agents.

Smuggles in Tijuana that normally charged $2,000 for crossing into California or Arizona, are now charging $3,000 to $5,000 to avoid boarder states for more desirable locations such as Oregon, Illinois, Virginia, Maryland, and Washington D.C..
Any way you look at it, where ever they go, many who are leaving Arizona on their own or by deportation, are definitely contributing to the number of foreclosures and the oversupply of housing in the local market.

 

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Anonymous
Ella

 

 David,

 Your article is very enlightening and so very true.

 

Feb 07, 2008 01:14 AM
#1
Sara Goodwin
Estimation Nation Corporation - Portland, OR
Portland, Oregon Appraiser

David -

You've put immigration into a perspective of the economy that I hadn't really thought of before. Well, I have thought of it, but it really makes a (500% +/-) dent in a condensed Mexican population. It's too bad the North American Union would never fly... Canada is too smart for that ...

It goes to show if you make any drastic move, the ripple effect is going to bite you back.

Feb 08, 2008 03:31 AM
Katie Marchione
Community First Financial - Scottsdale, AZ
Community First Financial
Isn't it funny that illegals could actually buy real estate in Arizona?  How does that work exactly...
Feb 08, 2008 06:39 AM
David Hintz
Accurate Appraisals & Consulting of AZ - Maricopa, AZ
AZAppraiser
Sara  -  You're right.  I know of a Landlord (out of state resident) with 8 residential properties in my area that are all going into foreclosure.  Only 1 has a tenant.  The landlord (owner) is simply walking away and not even open to a possible short sale on any of them.
Feb 08, 2008 09:57 AM
Anonymous
Anonymous

 

Arizona Daily Star... Long Realty Company

www.azstarnet.com/business/227653

Mar 06, 2008 04:33 PM
#5
Michael Zollo
Coral Springs, FL
Certified Residential Appraiser, South Florida, FH

David, I hate to tell you Mexico only wants their boarder open one way, out only. Cross the boarder into Mexico illegally and see what happens. Now with the illegal wave hitting the North. I wonder if the politicians in the DC area checking the green cards of their maids and landscapers.

Sara, You are soooo right again, If we do something to rash and to fast, it will blow up in our face.

 

Mar 06, 2008 10:47 PM
David Hintz
Accurate Appraisals & Consulting of AZ - Maricopa, AZ
AZAppraiser

Michael  -  I agree, the direction is one way.  That one way is big money for the human smugglers too.

 

Mar 07, 2008 05:42 AM
Sandra Paulow
Aspen Properties, Inc. - Pinetop Lakeside, AZ
REALTOR, Associate Broker, GRI, SFR

David,  I hadn't thought about the fact that many of those foreclosures could be attributable to illegals in our State.  With the new law about hiring them, I'll bet there will be more.  I think they all leave your area and head to the White Mountains.  Hope they get a handle on it soon.  It is a little frightening to me.  

I used to live in Southern Arizona and it got so that daily there were groups of them passing by my property.  I lived outside of town in a very rural area, the perfect place for them to pass by without being spotted.  My old neighbors say it has gotten much worse. 

All we can do is hope that one day they will get a handle on it. 

Mar 07, 2008 06:00 AM
Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

I haven't heard of illegal immigrants buying homes over here. They all seem to sleep under the bridges, in the Home Depot parking lots, or actually are renting places to live.

Apr 13, 2009 03:22 AM