Write a 6 page essay on Arizona Real Estate Market.The crash was caused by several factors which had not been foreseen. This paper discusses Arizona’s real estate market crash. The economy of Arizon

Write a 6 page essay on Arizona Real Estate Market.

The crash was caused by several factors which had not been foreseen. This paper discusses Arizona’s real estate market crash. The economy of Arizona largely depended on the real estate market. The real estate market was at its peak when gradually the market collapsed. This did not happen abruptly, a number of factors can be identified as the cause of Arizona’s real estate market crash. One of the factors is that many people had taken mortgage to purchase homes. People were tempted to own homes either for personal use or to sell later. Some of them could not afford and decided that a mortgage would help them become home owners. In addition, obtaining loans was easy going. The loans were characterized by low interest at the initial years. Later, the loan interest would be adjusted according to fluctuation. Some of the people with loans whose income could not match with the loan repayment premiums discovered that the mortgage was a challenge when it came to paying. There were many houses available for selling. The economy was strained and people were not willing to purchase when the economy was not thriving. There was little selling activity when compared with the prevailing trends and previous years. The financial sector had been giving mortgage with security. The large institutions could be given larger mortgages backed with security so that they could enable employees purchase the homes. The real estate markets in Arizona represented their value using the property worth in mortgage. Consequently, the lenders had successfully invested in many buying homes. As a result, a lot of property ended up as fore closures. With the increase in fore closure, the securities were not worthy. The arrangement to offer many people homes instead become unsuccessful and led to more challenges. Crook (23) mentions that, mortgages enable people to own home.