Real estate experts: 50% of Valley homes underwater

PHOENIX - It's another sign of the troubling times in the Phoenix area housing market.

Several real estate experts agree that more than 50% of homeowners in the Valley are underwater.

“There have been other reports they even have worse numbers, 66-67%,” said Dr. Jay Butler, director of realty studies at Arizona State University.

“I think most people thought by now we'd at least be working our way through the problem but it seems to be getting a little worse,” said Butler.

With more people walking away from their homes, the values could keep going down, which some think may cause a domino effect.

“It just makes people more convinced the market isn't good, they can't sell their homes, so they better be happy with it, which a large majority of people are, or walk away from it,” said Butler.

Jay Luber, president of Phoenix-based Galaxy Lending Group, admits times can seem uncertain for potential home buyers.

“I think 50% is a very, very high number and it's also a very scary,” said Luber.

But despite concerns, Luber said now is a great time to buy because of low interest rates and low home values.

Luber acknowledges it will take a while for the market to bounce back but thinks it will make a strong come back.

“The depth of our recession is much, much greater. I will say in five to ten years, again, Arizona and Maricopa County will be the number one growth area in the United States.”