, Note the high end asking price (75th penrlctiee) has dropped over $100,000 - from $630,000 to $525,000 todayAnyone who bought a year ago is screwed And that makes anyone who bought in 2002?Just returned from there after a week. No doomsday there yet. Homes were selling (which surprised me) and with no significant price reductions where I looked.Visited friends, one who lives in my old neighborhood and has a lovely home on a half acre lot he bought in 2005 and then sunk $200,000 into remodeling and backyard (house was built in 2003). If I wanted to move back and buy that house would cost three times what it sold for new in 2003. The house new would have sold in 2003 for $350,000 without his upgrades. Would $550,000 be out of line? In this gated neighborhood and in Litchfield park, no as it would be about $170 a sq ft and the homes in there are still selling for $200 a sq ft.Because he bought at the peak and then sunk $200,000 into it I personally think he'd be out $80,000 but someone from California or Seattle or Boston or New York would probably pay $750,000 for it and he'd break even. I only mention this example because it is the only one I have from my trip of someone I know who actually overpaid in 2005. Had he not done the extensive remodel he'd still be okay but he paid cash and plans on living there for many years so I doubt it is an issue for him. Hell, he has $250,000 in cars sitting in his driveway. He owns seven new cars and the least expensive is a caddillac Escalade.Why anyone nees a different car to drive to work each day is beyond me but he is a CEO, his family has millions so he actually lives way below his means even if I consider it extravagant.Inspite of this chart the fact that Phoenix had its fourth best year for house sales in 2006 and that they have moved into the fastest growing state category says that the market should be absorbed quicker than most here think.

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