Dear Mr Bernanke,
Phoenix area (Maricopa County) real estate is suffering. The decline in Phoenix area housing has had a crippling effect on the Phoenix economy. Unemployment within the Phoenix real estate industry including Realtors, loan officers, mortgage brokers, appraisers, inspectors, new home builders, title companies are reaching epidemic proportions in towns of Peoria, Glendale and Mesa. 
Today, the Commerce Department announced that construction of new homes fell to the lowest level in 17 years last month, showing the country and especially greater Phoenix where our real estate boom was led by new home construction is still gripped by a severe housing downturn.
Home owners in Mesa, Chandler, Gilbert, Peoria and Glendale have lost untold amounts of personal assets and wealth as home prices have declined roughly 30% (or more) in most areas of greater Phoenix.
Even towns like Scottsdale, Paradise Valley, Carefree and Fountain Hills are not immune and have seen prices decline more than 10% in those east valley (Maricopa County) towns.
Now, after watching our Federal Government bailout Fannie Mae and Freddie Mac just weeks ago, we wake up to find that the FED has invested/loaned (bailout) the American Insurance Group (AIG) to the tune of $85 Billion of taxpayer money.
Although, I did not go to Princeton (except to visit a friend for a weekend party) I can speak for many of my fellow Phoenix area home owners, real estate professional and consumers, when I say that the moves aimed to shore up consumer confidence are not working. In fact, if the stock market recent performance is any indication, these Federal bailouts (while important) are frightening Americans.
Yesterday, you had an opportunity to lower interest rates. I understand that lowering interest rates has little direct impact on 30-year fixed mortgage rates. However, it is a shot in the arm (not A.R.M.) that the American consumer desperately needs as it feels like things are getting worse, not better.
I know you are doing everything you can. However,
an interest rate cut and a boost of confidence is what the economy and Phoenix real estate needs, not bigger tax bills.
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Copyright © James Wexler *Phoenix Real Estate needs an interest rate cut *
Contact James Wexler (480) 221-8080 for your Phoenix AZ | Scottsdale AZ Real Estate needs
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