Up To 67% Of Phoenix Homes Are Underwater

Tyler Durden's picture

Jay Butler, head of Realty Studies at ASU, was interviewed by ABC15 in Arizona saying that the number of underwater homes in Phoenix may be as high as 66-67%. This means a complete bloodbath for housing prices is still just beyond the horizon, not to mention that the true state of bank (and GSE) balance sheets is deplorable, and if there was even an ounce of reporting or mark-to-market integrity, most banks would be completely insolvent right now.

 

 

And since we now live in a land of endless home-payment subsidies, here is how Fannie Mae is responding to this once in a lifetime perfect storm, courtesy of its homepath.com program, which is now requiring just 3% down for a home purchase (worse than pretty much anything during the housing bubble), and according to some interpretations, requiring essentially no money down after one factors the various consumer-level government stimulus payments. That this will all end in another real estate bloodbath is the clearest writing on the wall ever.

h/t Housing Doom

 

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hedgeless_horseman's picture

This city shall rise from the ashes like a...GM's subprime-business model.

cossack55's picture

I'm not up to snuff on my mythology, does the Phoenix always arise from the ashes?

Quinvarius's picture

The key concept being "ashes".

A Nanny Moose's picture

Fire is necessary for the healthy forest.

kathy.chamberlin@gmail.com's picture

indeed it is. but man keeps trying to put out all the forest fires in the west, anyway. just like this god damn government keeps putting out all this disaster crisis and this depression with fake money, water . similar, ah, throwing good money or water to control natural events. it's like they think they have power over nature and gravity. americano's at least, believe man has the power to control, nope. w i n d   water   s u n (fire)   earth.

healthy forests, pine beetle winning.

kathy.chamberlin@gmail.com's picture

your funny cause south Arizona is like living amongst the ashes.

the phoenix/bennu was originally a symbol for the rise, fall, and return pattern of the sun. later, the creature also became a symbol for the human journey of life, death and rebirth.

ColonelCooper's picture

How does that definition of insanity go?  Something about repeating the same action over and over......

Bluntly Put's picture

I left Phoenix a few months ago, Phoenix had structured most of it's economy on housing, other than Motorola and Intel there is little tech or manufacturing. Talk about malinvestments. I think the City has downsized it's planning and development departments by over 60%. I'm sure there will be deals to be made in Cave Creek where subdivisions to nowhere have been constructed, 4,000 sq foot homes 40 miles from nowhere. I'm glad I left when I did. No offence folks in Phoenix/Scottsdale but you got a whole lot more pain in the pike.

pitz's picture

Motorola hasn't been doing so well, and Intel's way of doing business is to bring in a bunch of foreigners on the H1-B visa program, instead of hiring local people with a long-term committment to the community.

NotApplicable's picture

Before this is all said and done, the only requirement needed to qualify for a mortgage will be a voter registration card.

breezer1's picture

a library card, if you can find one not closed down.

Squid-puppets a-go-go's picture

lol or a Zero Hedge profile

no collateral required for non- anonymous profiles, anonymous ones must put up 0.5% equity to loan

Amish Hacker's picture

And remember, when all is said and done, a lot more gets said than done...

Village Idiot's picture

when all is said and done, a lot more gets said than done

 

bumper sticker

pitz's picture

Mortgages won't exist once everything is said and done.  Cash only, bitches! 

kalum's picture

A drivers license. We give them here in NM to anyone who appears alive.

Boilermaker's picture

Phoenix...LMFAO...get real.  Come see me in Detroit and I'll show you the real ugly side of this story.

Gromit's picture

and the other 33% are free and clear?

hedgeless_horseman's picture

Work on your spin, or you will never make it in the new normal...

Making mortgage payments is still not a problem for thousands of Phoenix home owners as economists continue to see signs of a recovery in housing.  Pulte Homes' stock confirms this recovery as it has exploded up more than 8% in the last month.

Horse shit...familiarity improves recognition.

Rusty Shorts's picture

And still, the Banksters are enjoying themselves down in the Bahamas.

http://www.youtube.com/watch?v=UZY1W_iEUhc

MsCreant's picture

Rusty, that was so serene, sweet, and wonderful. Really wish I had been there. Nice Post.

Please don't insult pigs like that anymore. Okay? I mean, I hate to pull out the big guns but I could bring in the Humane Society on this. I don't want to, but, ya know, pigs have rights.

Rusty Shorts's picture

 - umm, good point MsCreant, I will make a formal apology to the pigs.

Dr. Sandi's picture

There are a couple of them kicking your front door in, even as I type this....

A Nanny Moose's picture

Today's bankers, tomorrows Chorizo con Huevos

Cognitive Dissonance's picture

Did you notice the Bankster pigs keep swimming no matter what? They head for the boat, but if nothing is proffered, they keep on moving. It's either paddle like hell or sink (sleep?) with the fishes.

plocequ1's picture

Too late. The market is immuned to bad news. What else ya got?

MsCreant's picture

Ron Paul just got elected president? Would that do it?

plocequ1's picture

Don't tease me like that.

myshadow's picture

well, congress is there. so, no.

MsCreant's picture

Needs a total sweep, even the staffers. I agree. And then we are still hosed.

Arthor Bearing's picture

Honestly, this is a worst-case scenario. If Paul and other right-thinking people came to power, immediately audited the fed, ended fiat currency, and perhaps even defaulted on existing debt obligations, the resulting turmoil would be blamed on them, even though they would merely have catalyzed a reaction that had been building for almost a century. 

What's needed is for TPTB to stay in power all the way to the bitter end, so everyone will know EXACTLY who's fault it all was.

Shameful's picture

The problem with this is what are the chances they will be able to hold on?  Do a party swap, scape goat the foreigners or minority ethnic group and kick off a new wave of tyranny.

You give the average person to much credit.  The vast majority will simply root for their color, blue or red while the ship burns.  And after the ship is sunk they will likely continue to vote for their favorite team.

MachoMan's picture

Joe sixpack will need no help...  this party crashes on its own.  Regional political power prohibited them from passing the baton to a single world government...  the noose tightens...  trust me, it will be painfully obvious who is to blame.

I'm not saying we'll do anything about it or even be in a position to do something should we desire on the backside of this thing...  but J6P will be well aware of who is to blame and no amount of propaganda or fear mongering will sustain the lie.

carbonmutant's picture

 The antibodies in the system (FED cartel) would not allow him to be elected.

jbc77's picture

No problem. Listen boys, as long as the fed keeps buying stocks twice a week, whos gives a rats ass, right? Nothing to see here, perfectly normal when over 50% in a major city are underwated. Whats wrong with that? Dow is up today.

plocequ1's picture

Spoken like a true protege.

Cognitive Dissonance's picture

Up To 67% Of Phoenix Homes Are Underwater

How ironic that one of the driest cities in America could be so flooded under bad debt.

Village Idiot's picture

Good morning, Cog Dis!

Hey, my brother forwarded a song to me - some (two) of most poular words used on ZH. It's a catchy little ditty.  Enjoy.

 

http://www.youtube.com/watch?v=pc0mxOXbWIU&annotation_id=annotation_58330&feature=iv

DavidC's picture

Village Idiot,
That's one the very few song and video links that I've really enjoyed!

DavidC

Cognitive Dissonance's picture

If I remember correctly Deadwood set the record for F bombs per episode, didn't it? Personally I loved it. When used properly, as I believe it was in Deadwood, it's almost poetic.

The only G rated place out west in the 1800's (and early 1900's) was on TV. Where being presentable in public was defined as making sure you wore your cleanest dirty shirt, swearing was part of the everyday language.

ColonelCooper's picture

Good one, Rusty. 

If I had just closed my eyes and listened, I would have thought it was just one of our morning meetings at the last big job I worked on.

Rusty Shorts's picture

HA, I've been in few meetings like that !!

Cognitive Dissonance's picture

LOL, very nice.

It does appear that Cee Lo Green is contributing to the delinquency of minors with the lyrics, but it's all in fun, right? :>)

Village Idiot's picture

Oh, one more thing - zh is a community. Peace.

Sent from my I phone.

Cognitive Dissonance's picture

Apparently many disagree with my supposition.

MsCreant's picture

I think it is a community for some, and not all, and that is okay. Modern life in the RW is like this too, locals who hang out, others who drift in and out. It is okay to be both. I also think for some this is a home base, stop in, check your perspective against others, move on, come back after a while, it's still here.

It's all good. What disparagers think is irrelevant. They know what their experience is for them and that is okay. I know what my experience is like for me. How could I be "wrong?" It's mine. :-) As I see it, no conflict.