patrick.net

looks like it reverted to the mean to me.
Just over 100 per sq foot should be where it stays.

BUT with ever lower int rates - prices could go sky high again with 1.5% mortgage rates (not teaser loans either....mayne with a 5/1 arm or other fixed). We will see under 2% mortgage rates soon, very soon IMO.

The fed reserve has figured out they can do ANYTHING and get away with it. So watch for even crazier antics.

PockyClipsNow says

Just over 100 per sq foot should be where it stays.

Anything above 100 is just stupid!

i sold mine in 06 for $400 per sq ft.

still its worth about 250-300 even now (a bargain!) its a crappy 3/2 30 years old. anyway.....its got 'good schools'(racist codeword).

PockyClipsNow says

its got 'good schools'(racist codeword).

Has nothing to do with race, and everything to do with income levels. If the majority of kids are poor, the schools are labeled bad.

Old support becomes new resistance.

If you could see the supports around the upward movement, you would see they are made of particle board and the legs are supported by mud. The first hint of rain will be interesting to say the least. When it happens, then all the cheerleaders will busy themselves with something else IMHO. Maybe watch more TV.

So a place on the surface of he sun invaded by illegal aliens a million miles from nowhere is $100K.
What's the big deal here?
You won't get any capital appreciation from it. And, if you decided to LIVE in it, you have to STAY in it to reverse-mortgage the dump.
Why bother?
I hear they have nice deals in Mexicali too.

what happens to the price of housing when interest rates go up in 10-20 yrs?

robertoaribas says

Thank you for that in depth and fact filled analysis. I hope you didn't put your self out too much with the research, and thinking time grappling with all of those meaningful numbers to arrive at that profound conclusion.

Your more than welcome. Don't say you haven't been warned when you are forced to chew your own arm off for food because of your cash flow problem. Houses are for shelter. They do a great job in keeping out the elements and rodents. Venture outside that purpose and anything can happen.

An average is not the correct way to look at the data. The average is not a good indicator of the whole market. You want to use the median price.
http://www.deptofnumbers.com/asking-prices/arizona/phoenix/

The average price chart at the start of this thread shows a bottom in March '09 (which clearly didn't occur) and then a 2nd bottom in Sept of last year.

When you look at the median data you see the current bottom starts in Jan '11 and coincides with the number of available homes decreasing on the chart below it. (which makes sense given supply and demand)

That's my 2 cents on that subject.

One other thought. When interest rates eventually increase, won't that mean we'll have yet another housing bottom because most people buy a house based on the monthly payment and not the amount?

patjohn97123 says

One other thought. When interest rates eventually increase, won't that mean we'll have yet another housing bottom because most people buy a house based on the monthly payment and not the amount?

Historically, that's not what has happened.

robertoaribas says

RentingForHalfTheCost says

Don't say you haven't been warned when you are forced to chew your own arm off for food because of your cash flow problem.

I certainly appreciate the advice, but actually I am a vegan. I eat fruits, vegetables, beans and whole grains only... No meat, no dairy, no eggs, no sugar, flour, or processed food of any sort! I have to keep my mind clear, and live a long long time to enjoy all of my money!

You'll have to live long to get to the end of the 30 year mortgages you own. ;)

I eat what I feel like, and pay only in cash. I'd rather live debt free and die before I become a burden.

RentingForHalfTheCost,

There are many who don't understand: debt free.