Home resales drop in Valley

March 8, 2007
Misty Williams, Tribune

The key to metropolitan Phoenix's housing market rebound is fixing its failures from the past few years.

That was housing market analyst RL Brown's message at a forecast last week.

Here are some items on his list of the market's cracks:

• New home developments too quickly became resale communities as early investors competed with builders.
• The Valley's loss of its affordable edge compared with other big cities.
• Transportation gridlock for home buyers on the fringes.
• "Disneyland" financing, meaning all of the more risky mortgages. They have opened the door to allow investors to buy multiple houses and other home buyers to potentially commit fraud and put struggling buyers into more house than they can afford.

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