Buying a new home was a great deal there for awhile.
Builders pushed up prices as aggressively as possible which provided a price umbrella for resale homes in those communities. I had one client who netted over $100,000 while owning the new home a total of 4 months.
Now, the down side risk is painfully clear. In a normal market, home builders are your competition… big time aggressive competition that can cut prices and crank out more and more homes to compete with your home.
In the last year, home values in older areas like Phoenix, Tempe and Glendale have done better than most newer communities that face more competition from home builders.