Our Experience Living Through the Phoenix Housing Bubble
We have lived in our same home for 8 years now and living in the rocky housing market here in Phoenix, Arizona, we have seen many ups and downs all around us where we live. When we first bought our home, the market was on its way up and would shortly reach it’s peak about 9 months or a year or so after we bought our home. We watched as our home we paid $189,000 for went up to a valuation of $250,000 at the top of the peak and then plummet and continue to fall until our home was valued at somewhere are $75,000 at its lowest point. It was scary to watch many of our friends and neighbors lose their homes and have strapped themselves to tightly to a mortgage they couldn’t afford. While our home is still upside down in equity, we have been blessed to never struggle to pay our mortgage payments.
In seeing all this happen all around us over the years of being a home owner, I came to understand why mortgage insurance exists and is often needed for home purchases. Mortgage insurance helps to protect the lender against default and be able to place more confidence in the buyers. Because they are able to have protection against defaults, they are willing to accept more of the risk. If mortgage insurance didn’t exist, buyers would most likely need to be able to bring 20% of the home’s purchase price as an upfront payment on the home. It is absolutely fantastic if families are able to save up and pay a large down payment but many families are not able to and would otherwise not be able to get into a home.
Visit their resource site above to see how Genworth Financial can help your family on your path towards owning a home.
Disclosure: This post is brought to you by our friends at Genworth Financial.
we are homeowners just bought a home about a month n half ago and the market is doing pretty well where we are considering.
i had a friend i went to high school w/ who moved from ocala fl to tepe az. she is an artist, retired art teacher. i am trying to sell my home and land to move out of nc to fl…nc is too screwed up…thankfully my area is doing better housing wise…however, i am trying to sell my place to a developer
I am not a homeowner yet but as my family has grown I am starting to look into it and it is very informative to read about how mortgage insurance works.
We are waiting for the day when our private mortgage insurance will drop off the mortgage. Hopefully in a year or so.
That will be a GREAT day!! 🙂
Yes indeed it will.
There is a show that follows people that go to the foreclosure auctions. It is based in Phoenix I think. Heartbreaking that people lose their homes. I couldn’t imagine.
My son just bought his first house. It is really a big step. Mortgage insurance is definitely worth it though. My heart breaks for those who lose their home.
The housing market has devastated so many people financially. I’m glad you’ve managed to stay afloat.
Having Mortgage insurance is a good thing to have because it gives peace of mind. I do not have it, but I would like to see what it is all about. Owning a home is so expensive, and making sure that having enough insurance is very important.
The housing market has been crazy! I watched as our dropped in value a lot too, although it has came up again, thank goodness! Seriously, house in our neighborhood used to sell in 1 to 2 days. Now they just sit here for months.
I have family from Phoenix so I’m familiar with the area, and it’s been crazy watching the housing market the last few years.
It really is so heartbreaking! Though, I am so glad that you all have managed through it all! Thanks for sharing this resource, I have never heard of mortgage insurance.. interesting!
I live in the high desert above Palm Springs. Our home lost over two-thirds of its value. I just checked and it has gain a little of its value back, but it is still 40% what it was worth.
Ouch!! I’m so sorry!! Hope you don’t have the need to move any time soon!