News Article From: 08-17-2006
Housing downturn will hurt, from the Arizona Republic, reports on the Republic's Jon Talon's perspective on our current housing slowdown. He states that Metropolitan Phoenix, more dependant on the housing industry than any other major city, is facing its greatest immediate challenge in at least 16 years as the real estate boom ends. He suggests that winners during this slowdown will be well capitalized developers, such as DMB, who have the patience to wait for a market upturn that may not come before the end of 2007, bottom feeders who will swoop in once prices fall and pick up some properties for a song, pre-leased projects, and homeowners who have savings and no immediate need to sell their properties. Talon sees the losers as the job market, big projects that are not yet out of the ground, people with lots of debt and "creative" mortgages, investors and ordinary homeowners who were counting on the continuation of the rise in home prices, speculators in condos, second homes and huge houses, and businesses that count on the housing market such as Home Depot.