Maricopa AZ real estate implodes

a completely artificial construct based on cheap water, cheap gas and cheap mortgages. It is now disintegrating,…

That’s what happens when thousands of homes are built in the middle of nowhere with no supporting infrastructure or shopping and sold with no money down and adjustable rate mortgages.

Areas like this may never come back. Why would a vulture investor speculate on abandoned property in a place with nothing when, for a little more, they can buy in a place that has stores and jobs? Answer: they won’t, and they are the ones who will provide a bottom for real estate prices. Maybe Maricopa won’t have a bottom but instead will become a ghost town of abandoned homes. Let’s hope not, but it’s difficult to see what could turn things around for them.