Arizona Sucks

I’ve heard it, you’ve heard it, we’ve all heard it several times – ‘it’s the same everywhere else’ – it has slowly but surely become the go-to argument whenever a negative story or comment is shared about how life really is in Arizona. This argument has really increased in popularity out here over the last few years as many have tried to relate Arizona’s problems with that of the nation’s struggling economy. There are some people out here who may actually believe that other states are having the same economic, real estate, crime, and job struggles which we are dealing with in Arizona. Maybe you’ve even wondered if it really is this bad everywhere else in the country?

Not a chance. Do other states share some of the similar problems? Absolutely. Do other states have their own issues to deal with? They sure do. How many other states are stuck with permanent economic and social issues? Not many. Could it be the economy? Elsewhere, yes – in Arizona, not really. Is it just that the future for Arizona and its residents doesn’t sound all that appealing? Probably.

Anyone who really believes that the problems we are experiencing in Arizona are ‘the same as everywhere else’ either has never left the state of Arizona, has been stuck here so long that the heat has left them with no rational thought left, or is just ignorant to what is really going on around them. Look around you – most of these issues found here are not plaguing the rest of the country. Arizona does share some similar struggles with the rest of the nation, but the main difference is the rest of the country will probably recover at some point. Three of Arizona’s major struggles which will continue for the forseeable future include the housing market, job market, and increasing violence. I’ll keep it pleasant and much, much shorter by leaving the weather, schools, residents, drivers, traffic, and lack of things to do out of this one.

Arizona’s Housing Market – finished. I really don’t think there is a simpler way to describe how the real estate market is going to continue playing out here in the coming years. The growth over the last 10 years fueled a real estate boom like something never seen before. Brand new developments went up all over the Phoenix area and each new development managed to get farther and farther away from the center of this mess. The homes continued to go up, but the population growth did not. The homes became larger, more feature packed, and pricier, but the number of unemployed and underemployed in Arizona increased. Arizona now struggles with tons of vacant homes, foreclosures galore, and a population struggling just to make rent. Who is going to buy these houses now? Arizona has always relied on growth to keep the bulk of its economy moving along, but what happens now as the growth continues to go down? More foreclosures and extremely cheap housing for anyone dumb enough to still move out here. Investors will certainly be shopping around for the best bargains, but might be in for quite a surprise when they realize nobody wants their home or they have to accept Pesos just to get someone to rent their home. I’ve said it before, and it needs to be said again – avoid the Arizona housing market all together unless you plan on staying for a very, very long time.

Arizona’s Job Market – almost non-existant with the exception of the retail, call center, and fast food industries. Even the construction jobs have vanished since we have vacant homes, offices, and strip malls for years to come. It will be interesting to see how the restaurant and service industry fare in Arizona since disposable income is just another thing running dry out here in the desert. Arizona’s job market will not rebound like that of the rest of the country because it can’t come back around since there was never really any jobs here in the first place. The so called HOT job market in Arizona was one of the more elaborate schemes coming out of Arizona which was pioneered, abused, and a success story for many Realtors around the state. It was simple, but it worked – create a false job market, persuade people to relocate to Arizona, and then sell them a home. The result was thousands upon thousands of people who made the voyage to Phoenix in the hunt for a piece of this bogus job market. So many people moved out here thinking good jobs were abundant, bought homes, and then could never find work. Want a good job, maybe even a career? You probably want to avoid Arizona, unless you want to push shopping carts around while it is 117 degrees outside.

Arizona’s Escalating Violence/Gang Activity/Drugs – they say crime is going down in Arizona, but picking up a newspaper, watching the news, or just keeping an eye on what is going on around you would tell you otherwise. The crimes out here seem to get crazier and more intense every year. Arizona criminals are desperate and will go after anyone and everyone including kids, the elderly, cops, the homeless, and even your pets. Fanatical crimes happen everywhere in Arizona from the white trash trailer parks to the illegal ridden apartments to the so-called affluent area of North Scottsdale. Drugs are all over the place as well, and what were once normal people will now do anything to get their fix. The schools out here can’t brag about the education your children are getting, but they do offer great exposure to gang activity and hard drugs. The number of gangs is on the rise across Phoenix, and the bulk of it is originating from our friends down South. Drug, human, and weapon smuggling is commonplace in Arizona and something you probably don’t want to get in the middle of. The most alarming part about all the violence and crime in Arizona is that it is only going to get worse as more illegals creep in, more people lose their jobs and houses, and the meth use continues to rise. It is quite the situation out here and it is definitely not the same everywhere else.

Still think Arizona is exactly or close to being like anywhere else? Think again.

The few people out here who actually have not been foreclosed on and are still making those monthly mortgage payments have got to be wondering what their home is actually worth in this brutal Arizona housing market. Many have realized they will never come out ahead as they significantly overpaid for their house a few years back, others are under the impression that Arizona property values will rise as much and as quickly as they did in recent years, and there are some others who just want to return to the days of living in a neighborhood that is not filled with vacant houses and houses which are desperately rented out to herds of illegals. I recently came across an article in regards to the top signs that your home may be losing value. Obviously, there is really only one way to know what your home is truly worth and that is to clean it up and put it on the market. Unfortunately, despite what your Realtor, neighbors, and coworkers may claim, it does not look like Arizona home values will be turning around anytime soon. Here are just a few of the reasons why:

Foreclosures in your neighborhood – we all know by now that Arizona is home to a plethora of 30k millionaires, wannabes, fakes, and those stuck in the constant struggle of keeping up with everyone else’s material possessions. It started with just clothes, cars, alcoholic beverages, and upscale electronics and then turned into having to have the most elaborate house with the lavish swimming pool, and the largest garage on the block. As Arizona home prices inched upwards and these people continued to buy, a lot of people put themselves in situations which they could never recover from. You will lose every time you try and keep up with someone when you don’t have the right assets – in this case, financial wealth. So, what do we have in Arizona? Thousands of people who bought homes they could have never dreamt of affording and have been foreclosed on. And all those foreclosures lining your community surely aren’t helping your property values. While it is fact that people have been foreclosed on in every area and zip code across Arizona – the neighborhoods that are really going to feel the downfall of all these foreclosures will be those who bought fringe properties assuming the population growth and rise in home values seen in recent years would continue.

Homes lingering on the market – if you were to drive around your block right now, how many ‘home for sale’ signs could you count? In fact, you probably have a pretty good idea without even stepping out your front door since so many Arizona homes have just been sitting on the market for so long. The further out from the city you go, the more likely you are to encounter multiple homes for sale on each street you drive down. There are so few desirable areas or communities in Arizona and all the houses/subdivisions are essentially the same anyways – so why buy somewhere when it is cheaper a few streets over? If a home sits around long enough, it’s price certainly isn’t going to go up; banks, investors, and former owners are only going to hold properties for so long before they give up and slash the price, which will drag down the value of your Arizona home as well.

Increasing unemployment – the future of employment in Arizona looks anything but promising. Unlike most other places, there is not going to be a rebound in jobs available as the economy turns. Job growth in Arizona will probably remain fairly stagnant even in the construction, fast food, and retail industry. Just about the only reason it looked like there was job growth in Arizona in recent years was that someone had to build and then work in the newly created strip malls to service all the new residents of the Valley’s newly built up fringe cities. Those days are long gone – and with so few jobs out here it is going to be hard for people to qualify for a mortgage with no income. Excess homes and a low number of qualified buyers means people are going to shop around and the value of your home will go down unless you really have something to offer potential buyers.

Homes in disrepair – vacant homes, homes filled with questionable renters as a last resort to falling into foreclosure, and homes needing repairs which just aren’t in the budget. It won’t matter how nice you keep your property when the vacant property next door has boarded up windows and weeds taller than your cars. On the other side of your home is a three bedroom house filled with 19 illegals with two more on the way. They blare their annoying music all day, are constantly rotating out wheels in the continuous quest for the smallest wheels that stick out the most for their barely running Explorer, their lawn is littered with Bud Ice cans, and their kids will treat your lawn as their own. Then there are the homes that are not kept up since nobody has any money – many Arizona homes need paint work, roofing work, and other improvements which are certainly bringing down property values through out the neighborhood.

So, the real question is who is going to be able to afford these Arizona homes? In the past, Arizona always relied on growth to fill these overbuilt, overpriced, miles-from-anything homes. The growth is drying up just like everything else is out here except for the few native plants left. If you don’t have people out here who have the desire or the finances to purchase these homes and you have fewer people moving here then what do you have? A severe excess of homes which is only going to keep prices down for a long time.

Thought Arizona real estate prices would be leveling out by now? Think again – these foreclosures can and will continue to drive down the prices of homes across the Valley. Some areas will be affected more than others, especially outlying areas like Buckeye. What does this mean if you plan on buying a home in Arizona? Home prices will continue to drop – there is no reason to rush into buying anything except for your absolute long-term dream home. What will this mean for those trying to sell a home in Arizona? Unfortunately, as lenders are forced to slash prices to unload these foreclosed properties the value of your property will go down as well. When will the Arizona housing market stabilize? The Arizona real estate market will not stabilize until the foreclosure rate drops down to more average numbers. Prices will continue going down as long as there is an excessive amount of homes being foreclosed on. Once again, you can thank your neighbors for buying homes which they could never afford and thus lowering the value of your home as well.