The Housing Bubble

The Voice of San Diego reports from California. “Last summer, year-over-year home prices dropped for the first time in a decade. And new data released Monday marked the 12th straight month of such drops in San Diego County’s home prices. The 19,184 homes sold in the first six months of this year mark the slowest first six months of any year in almost a decade.”

“‘At this point, you can kind of start saying, ‘What’s it going to mean for the whole year?’ said Peter Dennehy, local real estate analyst.”

“The county saw three times as much foreclosure activity in June as it did in the same month a year ago, according to data from RealtyTrac. Last month, foreclosure filings in all stages of foreclosure measured 2,564 in the county, compared to 842 in June 2006. And in June 2005, there were 317 such filings.”

“‘If foreclosures are going to stay at elevated levels, and some people are saying the resets have only just begun, we’ll know the problems are deeper than many ever thought,’ said Andrew LePage, analyst with DataQuick.”

“‘What this is largely about is a bunch of demand that’s missing because it played out prematurely in early 2005,’ LePage said. ‘People were worried about missing out, losing out. We stole demand from the future back then.’”

“Dennehy said the median and sales rates give a good picture of what’s going on in the market, in general, feast-or-famine terms, but the price indicators hide much of the actual state of the market, where homes are selling for as much as 20 percent less than they once were.”

“‘If there was a home bought in 2004, and you’re seeing it sell again in 2007, you’re going to see a substantial decline,’ he said.”

“‘In the past, economists have viewed the economy as affecting the housing market,’ said University of San Diego economics professor Alan Gin. ‘Now it seems to be the other way around this time around.’”

The North County Times. “No agents or economists interviewed in recent weeks said they expected a broad rebound in Riverside County home prices within the next year.”

“Even the California Association of Realtors, known for its perpetually cheery take on the state’s real estate market, forecast that prices will fall 2 percent this year in the state, and other economists have estimated that declines of 5, 10 or even 18 percent are needed to bring prices back into line with residents’ incomes after record appreciation in recent years.”

“Local sellers who cut their price by $20,000 have often been able to sell their houses in just a couple of weeks, agents and sellers said.”

“That’s one reason prices have fallen from 2 to 20 percent in most Southwest County neighborhoods. The price of a typical existing home in Temecula has fallen about 8 percent in the last year to $435,000, according to DataQuick. Prices have fallen 3 percent to $385,000 in Menifee and 16 percent to about $425,000 in Murrieta.”

The Union Tribune. “DataQuick has yet to tally June foreclosures, but analyst Andrew LePage says there’s no evidence yet that the surge is ending.”

“A record 532 dwellings were taken back by lenders or sold at auction in May, a slight rise over April, DataQuick reported. County foreclosures for the first five months of the year totaled 2,240 compared with 336 for the same period in 2006.”

“Rodney McHone, who bought his Oceanside home three years ago for $609,000, has put the four-bedroom house up for sale, hoping he can get $475,000 for it in a short sale. He says he knows there’s no guarantee his lender will let him stave off foreclosure by accepting a lesser price, but McHone says he has little choice as he faces mortgage payments that could soon balloon to more than $5,000 a month.”

“‘This was my wife’s dream house,’ said McHone, who is trying to work his way back up from a substantial pay cut in his job. ‘I’m not going to walk into a foreclosure. I worked too hard to build up my credit. I’m not going to let no house screw up my family.’”

The LA Times. “Southern California home sales plunged to a 14-year low in June, dragged down by growing weakness in the Inland Empire, where sales volume declined nearly 50%, data released today showed.”

“In June, sales in Riverside County plummeted 50.1%, and the median price fell 5.9% to $400,000. San Bernardino County sales fell 47.2%, as the median price was flat compared with a year ago at $365,000.”

“In Ventura County, the median price fell 6.9% to $582,000, and sales declined 27.8%.”

The Santa Cruz Sentinel. “The increasing number of high-end sales in Santa Cruz County is keeping the median home price high, at $757,000 in June, a barely perceptible dip from $760,000 in May.”

“But the number of overall sales is down in comparison to the red-hot market of three years ago, when more than 250 homes sold in June. This year’s June sales, 164, are the fewest since 2001, according to Gary Gangnes of Real Options Realty, who compiled the monthly statistics.”

“The current housing inventory is at a 10-year high with 1,292 listings.”

The Press Democrat. “Sonoma County’s sluggish housing market showed modest signs of life in June, but agents say it’s still too soon to start calling an end to the county’s 2 1/2 year market tumble.”

“Prices have fallen for 12 consecutive months in year-over-year comparisons, the longest decline since The Press Democrat began tracking home sales in 1990.”

“Inventory also continues to back up, as new listings hit a market even as buyers remain on the sidelines hoping for better deals.”

“‘Have we hit bottom? I can’t tell because you always have a spring surge,’ said Beth Robertson, an associate broker in Rohnert Park. ‘But what I thought was positive was that this might be the beginning of the end of the downward spiral.’”

“Total sales were 20 percent off last June’s pace, when 435 homes sold. That’s a sharper drop than May’s 15 percent decrease, and second only to April’s 21.5 percent drop compared to 2006. That tells some brokers that what the market really needs is for buyers to wake up and realize how good they’ve got it.”

“‘This is strongest buyers market that we’ve seen in eight years,’ said Ross Liscum, co-owner of Prudential California Realty. ‘We just can’t seem to get the buyer to acknowledge they’re in the driver’s seat.’”

“Liscum blames this condition in part on the media’s ‘doom-and-gloom’ headlines, while Robertson said she’s seeing plenty of activity in homes that are priced right.”

“A recent home in Rohnert Park priced in the high $400,000s was scooped up after a $40,000 price reduction, she said.”

“The number of single family homes for sale in June increased by 4.9 percent, to 2,568. At the current rate, it would take 7.4 months to sell that many properties.”

“‘This is not a market for all sellers,’ Rosa said. ‘A lot of sellers can’t stomach this market.’”

A report from the Oregonian. “The Portland-area housing market continued its slow drift downward in June. The median home price for the Portland area dropped to $295,000, from $297,000 in May, according to the Regional MLS. That marked the first May-June decline since 2000, and indicated to economists who follow the local market that housing is weak and could become weaker through the end of the year.”

“‘I think it’s going to be a long time before we fully adjust to the excess inventory,’ said economist Bill Conerly of Lake Oswego. ‘It will be deep into 2008 before we hear any good news.’”

“After striding past the national housing slowdown for about a year, the local housing market is showing signs of losing its stamina. Rising inventories suggest sellers have lost leverage, and the widespread exit of first time buyers and investors have cut severely into demand.”

“‘We’re in a buyer’s market,” said economist Jerry Johnson in Portland.”

“Recent price gains have simply out-paced incomes, Conerly said, making homes less affordable. ‘It’s the prices compared to three or four years ago — that’s what is keeping first time homebuyers out of the market,’ he said.”

“There were 2,731 closed sales in June, 18.5 percent fewer than a year ago. There were 13,752 homes for sale as of July 2, 60.4 percent more than a year ago.”

“‘The story of the last few years had been a lot of first time home buyers moving out of apartments and people who wanted to try their hand at real estate investment,’ said Conerly.”

“Johnson said home builders need to cut production deeper than they have. ‘In the long run, you don’t want to have 5 months inventory on the market — you want three to four,’ Johnson said.”

“Across the state line in Clark County, Wash., the median price in June was $265,500, down 1.6 percent from a year ago. There was 6.8 months of inventory on the market compared with 4.7 months in June 2006.”

“In Lane County, which includes Eugene and Springfield…inventory is also on the rise. There were 902 houses listed with the RMLS. The number has risen steadily since January, when just 558 properties hit the multiple listings.”

The Register Guard from Oregon. “In Lane County, but June’s numbers showed…a jump in new listings. Last month, 902 houses were listed with the Residential MLS, compared with 804 in May. The number has risen steadily since January, when just 558 properties hit the multiple listings.”

“‘It appears that sellers held off longer than usual into the year to put their homes on the market,’ said Sue Jakabosky, eco-broker with Re/Max Integrity. ‘I think everybody was adjusting to the slower market, and they were hesitating because of all the (national) news that the sky was falling in housing sales, waiting to see what would happen here.’”

The Bend Bulletin from Oregon. “Bend developer Darrin Kelleher says he’s still in the market for buildable land in Central Oregon this summer, even though the housing market is ‘certainly on its nose.’”

“The reason: Kelleher, a self-described optimist, thinks the region will shake off its excess inventory by spring 2009, opening the gates again, the gates, not the floodgates, to new growth.”

“On the other hand, the market numbers are bad enough right now that even an optimistic developer has to concede that the pessimists might be right about a longer downturn. ‘It comes,’ Kelleher said, ‘with an element of fear.’”

“In Bend, the region’s most expensive market, 1,550 single-family homes without acreage, or homes on less than an acre, were for sale on June 11, according to appraiser Mike Caba’s tracking numbers, an inventory level that could take 10.9 months to sell if the average monthly sales rates of the first six months of 2007 continue to hold.”

“The number of houses for sale in Bend alone has risen 27.7 percent since the third week of January, according to Caba’s numbers, but price and sales weakness have been evident all year in nearly all of the region’s local markets.”

“In Bend, sales numbers plunged 25.8 percent from the same period in 2006 to 850, dipping to levels not seen since 2003. Redmond’s sales slide was even steeper. The city’s 298 sales came up 42.9 percent short of the same period in 2006.”

“Kirk Schueler, president of Central Oregon’s largest developer, said he and the Brooks board of directors don’t expect local housing prices and sales to stabilize, at this point, possibly until 2009. Brooks opted to pull the plug on a high-end riverfront townhome project in Bend earlier this year, partly because the company expects weakness to continue in that market for at least another year, Schueler said.”

“‘I’d say it’s going to be a good buyers’ market for most of the next six to 12 months,’ Schueler said.”

“In Sisters, non-acreage home sales slid 37.8 percent to 46 for the first half of the year, sliding below the pace of any year since 2002, according to the MLS, while median prices dipped only 3 percent from the first half of 2006, to $396,383.”

“In Redmond, condo sales plunged 55.8 percent to 23 compared with the first half of 2006. Predictably, the sales of raw lots plunged in most markets, falling 38.9 percent in Bend with a 5.46 percent price reduction from the first half of 2006, and diving 41.9 percent in Redmond with a 28.6 percent price cut compared with the first half of 2006.”

The Columbian from Washington. “Clark County home values showed signs of softening in June for the first time in more than five years with a 2.8 percent decline in home prices from a year ago.”

“‘I believe it’s the first month this year that there has been a significant change,’ said Mark Cannucci, head of sales and marketing for the ‘benchmarks’ service.”

“Total home sales were also lower last month than in 2006, dropping by 21.9 percent. A total of 813 new and pre-owned houses were sold, down from 1,041 home sales in June last year.”

“June’s declining home sales in Clark County were consistent with a 20.7 percent drop in second-quar ter home sales. A total of 2,311 homes sold in the three months ending in June this year, compared with 2,914 homes sold during the same period last year.”

The Idaho Stateman. “Home sales in Ada County are still lagging behind the record-setting numbers recorded in 2006, according to the Intermountain MLS Sales Survey reported today by the Ada County Association of Realtors.”

“June closings were 710, 35 percent less than the 1,135 recorded during last year’s near-record highs.”

“‘Buyers who are on the fence should reconsider their position, and look at their local market again. They’ll never have better inventory to choose from…Those who wait too long are going to find fewer homes to choose from and the possibility of higher rates not too far down the road,’ said ACAR President Sue Nielsen.”

“Nielsen said the number of sales last month ‘are more comparable to a normal market.’ The median sales price in Ada County last month was $235,090, down slightly from June 2006.”

“‘Sales in the $400,000 to $500,000 range were down by 41 percent. Most families are looking for homes that they can afford, and most families can’t afford $500,000,’ Neisen said.”

From KTRV 12 in Idaho. “Some of Mircron workers laid off may soon have their house on the market if they move to Pullman, Wash. That may not help the latest numbers on Ada County home sales, which show the market continues to lag.”

“The biggest reason is that the market is not like it was a few years ago, which is why experts say for Treasure Valley residents, right now may be the perfect time to buy.”

“But it seems home buyers are waiting to make their American dream come true. Agents say interest from out-of-state buyers is not as strong as it was last year.”

“‘I actually think the market in most of the market sections. I think the market is having difficulty finding equilibrium and it’s still leaning towards a buyer’s market,’ said Idaho Real Estate School Director Mike Gamblin. ‘I think some of the buyers who are on the fence now maybe should take a look at buying because we have our inventory which is bigger than usual.’”

“‘A good agent will know the market, they will know how to price your home correctly if your goal is to sell, you have to price it right, period,’ said real estate agent Laurie Barrera.”

Some housing bubble news from Wall Street and Washington. “Homebuilder sentiment slid in July to its lowest since January 1991 as fallout from the housing slump and subprime mortgage crisis caused a glut of new homes, the National Association of Home Builders said on Tuesday.”

“The NAHB/Wells Fargo Housing Market index fell to 24 from 28 in June, the group said in a statement. Economists polled by Reuters had thought it would slip to 27. Readings below 50 mean more builders view market conditions as poor than favorable.”

“‘The bottom line is that the single-family housing market is still in a correction process following the historic and unsustainable highs of the 2003-2005 period,’ NAHB Chief Economist David Seiders said in the statement.”

“All components of the index also dipped to their lowest since January 1991, the NAHB said. Declines were seen in all four regions of the U.S., with the northeast and south registering the largest drops.’

From Reuters. “Moody’s Investors Service on Monday changed its outlook on Toll Brothers Inc. to negative, from stable, indicating the company’s debt ratings are likely to be lowered over the next 12 to 18 months. Toll’s cash flow is going to be sharply negative in fiscal 2007 due to capital spending on high-rise projects in New York City, Moody’s said.”

“‘Given the continued build out of the mid- to high-rise towers that are currently under construction, it may be challenging for Toll Brothers to begin generating significantly positive cash flow in fiscal 2008,’ Moody’s added.”

From Thompson Financial. “A ‘triple whammy’ of a poor US residential housing market, lower lumber prices and a near two-dollar pound have conspired to hit profits of Wolseley PLC prompting another round of branch closures and job losses at Stock, its North American building materials business.”

“‘Trading conditions in the US residential housing market are the toughest since the late 1980s…and there is no sign of any upturn,’ Wolseley’s finance director Steve Webster told journalists.”

From Dow Jones. “Wells Fargo & Co said second-quarter profits rose 9%, boosted by continued loan and deposit growth, but some of its big regional-banking peers struggled.”

“Net charge-offs rose to 0.87% from 0.58% a year earlier. The one major blemish was a rise in losses on home-equity loans. Wells Fargo attributed the trend to depressed home prices in some markets, especially the Midwest and California’s Central Valley.”

“Wells executives acknowledged they were caught off-guard by the severity of the losses, which they predicted would continue through the rest of the year. They said they are tightening their underwriting standards and putting a greater emphasis on loan collections.”

“Regions Financial Corp. became the largest bank so far to suffer a sharp deterioration in credit quality. The Birmingham, Ala.-based bank said nonperforming assets jumped to $585 million, or 0.62% of its loans, from $422.5 million, or 0.45%, three months ago.”

“Regions, the nation’s eighth-largest by market value, blamed the increase in part on commercial real estate lending, which regulators and investors fear may be the Achilles heal of many regional banks. Specifically, Regions said it was seeing weaker demand for some real estate projects.”

“It also said it is implementing ‘more prescriptive credit policies, including extensive credit file reviews,’ which added to its pool of nonperforming loans.”

The Wall Street Journal. “Falling home prices are about to take a big bite out of many midsize banks’ profits. Until recently, banks were eagerly doling out loans to real-estate developers looking to capitalize on soaring home prices.”

“Today, as housing markets cool rapidly, banks are starting to reappraise the collateral behind those loans, often finding that land and property values have deteriorated, forcing the lenders to take painful write-downs that are taxing earnings.”

“‘Going in and reassessing the collateral is going to be the key for everybody in the next 12 to 18 months,’ says Gerard Cassidy, a bank analyst at RBC Capital Markets. ‘It’s going to take a pound of flesh off of the lenders.’”

“In San Diego, Atlanta, Minneapolis and much of Florida, more than four months’ worth of finished houses are sitting vacant, according to Metrostudy’s Mike Castleman. Meanwhile, rising foreclosures and mortgage delinquencies are hitting some of the same regions, which is likely to further depress home prices.”

“While major developers, including Lennar Corp. and KB Home, are absorbing charges to account for the declining value of land holdings, some smaller developers…have filed for bankruptcy protection. Bank of America Corp. and Synovus Financial Corp. are among those on the hook for millions of dollars in loans to the two firms.”

“‘There are likely many more very small builders and developers in distress,’ says Citigroup analyst Keith Horowitz.”

From Bloomberg. “Kohlberg Kravis Roberts & Co. canceled plans to raise 1 billion euros of loans for Dutch retailer Maxeda BV as investors shun high-yield debt. More than 20 financing deals have been postponed or restructured in the past three weeks as losses from the U.S. subprime mortgage rout rattled investor confidence.”

“‘We passed on a number of deals where we thought the structure doesn’t work,’ said Patrick Steiner, who oversees $4 billion of assets at Octagon Credit Investors in London. ‘The market was clearly out of control for a while.’”

“Goldman Sachs Group Inc., JPMorgan Chase & Co. and the rest of Wall Street are stuck with at least $11 billion of loans and bonds they can’t readily sell.”

“The market for high-yield bonds and junk-rated, or leveraged loans began to crack in June as concerns that LBOs were becoming too risky coincided with a slump in the market for subprime mortgages that caused the near-collapse of two Bear Stearns hedge funds.”

“‘The underwriters are going to be forced to provide bridge loans and it’s getting pretty ugly, but Wall Street deserves to get smacked around a little,’ said William Featherston, managing director at J. Giordano Securities LLC. ‘It’s been easy for so long.’”

“Hedge fund borrowing to invest in credit derivatives may magnify volatility in a market slump, according to a Fitch Ratings survey of 65 banks and insurers.”

“A ‘dramatic’ increase in hedge funds’ use of credit derivatives has pushed their share of trading to 60 percent of credit-default swaps, and about 33 percent of collateralized debt obligations, Fitch said in the report today, citing data from Greenwich Associates.”

“U.S. corporate bond risk premiums reached the highest in almost two years last week as hedge funds bought credit-default swaps to offset potential losses from the subprime mortgage rout.”

“‘Until all of this recent volatility, investors had been forced down the credit quality ladder, and up in leverage to meet investment targets,’ said Matt King, head of credit products strategy at Citigroup Inc. in London. ‘Now it appears hedge funds are deleveraging” to meet demands from their lenders.’”

The Associated Press. “Say goodbye to easy money, and watch out for the far-reaching effects. The drying up of the free-flowing cheap-debt spigot has been battering the housing market for months, and it’s now spilling over to other parts of the financial world.”

“‘There is no denying it. It is ugly out there,’ wrote the influential credit-market watchers at Standard & Poor’s Leveraged Commentary & Data.”

“As for housing, things have gone from bad to worse in recent days as credit-rating agencies announced they will downgrade billions of dollars in bonds backed by risky subprime home loans.”

“Not only will that further tighten lending standards, but it is sure to rattle the large banks that supplied much of that debt.”

The Herald Tribune reports from Florida. “A large banner hanging outside the Toledo Club Apartments on one of the main arteries in this city attests to distorted condition of the local rental market. The words on the banner read: ‘Free Rent.’”

“‘There is an abundance of rentals out there,’ said Donata Noone, a rental specialist with ERA Sun Coast Real Estate. ‘Buyers bought homes and condos when the market was good. They then tried to flip them, but realized they couldn’t and decided to rent them instead.’”

“With hundreds of houses, condos and apartments for rent in North Port, not every owner has been able to find a tenant. So rents are plummeting, and so are rental standards.”

“‘We’re talking to people we would not have considered two years ago,’ said Linda Haese, who is trying to rent two new 1,800-square-foot houses. ‘These are people who don’t have deposit money, but are willing to put $25 aside every month. As long as they don’t have a criminal record, we’re willing to say OK.’”

“‘Rents are coming way down because of supply,’ said Karen St. Pierre, a rental specialist with ERA Advantage Realty. ‘A 1,800-square-foot house without a pool that rented for $1,400 a year and a half ago is now renting from $900 to $1,000 a month.’”

“That represents a 36 percent drop and has created a wave of resentment among investors, who have seen their taxes and insurance bills move rapidly in the opposite direction.”

“‘Some owners are going crazy,’” said Noone. ‘They say they need the higher rent or they’ll go bankrupt.’”

“Haese, who is trying to rent two houses in North Port, said she attends investor club meetings where she hears horror stories about owners who have been unable to rent houses for as long as five months.”

“‘They’re just not dropping their prices fast enough,’ said Haese, who is offering her houses for just under $1,100 per month.”

“Haese said she is not making money at that level, and she would like to sell, but the market is glutted with houses for sale. ‘I think it will be five or six years before I can get out,’ she said.”

“For people looking to rent houses in North Port, the situation could not be better. They are being offered new houses with swimming pools at ridiculously low prices.”

“‘It makes much more sense to rent than to buy right now,’ said Dennis Black, a Port Charlotte appraiser. ‘A renter will pay 60 percent of what it costs to own.’”

“Because of the dramatic downturn in the real estate market, home builders are now replacing scrub jays as the most endangered species in this once rapidly growing city.”

“‘We’re in a recession,’ said Richard Gebing, who manages the North Port operation of Fort Myers-based Raymond Building Supply. ‘And this is not going to be a soft landing.’”

“The fundamental problem facing North Port is the oversupply of homes choking the market.”

“One in 10 houses is for sale or embroiled in some stage of foreclosure. Builders themselves are holding more than 400 homes that they built on speculation, said Dennis Black, a Port Charlotte appraiser who recently completed an exhaustive study of the North Port housing market and who interviewed individual builders to collect his data.”

“‘By their own admission, they are also sitting on as many as 500 vacant lots,’ he said.”

“‘It’s a ghost town for sure,’ said Marla Peters, the owner of Fort Myers-based DMI Construction. ‘I was driving though North Port the other day. It’s a ghost town. There’s a lot of downward pressure on new homes and existing homes.’”

“More than 50 companies were building houses in North Port at the height of the boom, but county property records show that only half that number remain active today. Some have quietly backed out of town, while others, including Grover Brothers and Webster Homes, face an ever-increasing number of liens filed by unpaid vendors and subcontractors.”

“Greg Leach of Heron Cove Construction blames real estate investors for the problems builders are facing. ‘I think the investors have treated us as builders quite inequitably,’ Leach said. ‘The investors have forced builders into bankruptcy.’”

“Leach’s own experience is that nine out of 10 investors are walking away from contractual obligations.”

“‘After the economy came apart, people started losing interest,’ Leach said. ‘They kind of got themselves between a rock and a hard place. They were leveraging their equity and their primary residence to have a spec home built, just to get in on it, without realizing what goes up can come down, too, and it usually does. People should not have gotten into this situation with their rose-colored glasses on.’”

The News Press. “Three hundred and fifty Lee County homes sit in some stage of construction — half-built, a pile of dirt, or unlivable.”

“Their owners are making interest payments on construction loans they can’t close. They’re facing tens of thousands of dollars in liens.”

“The owners blame contractor, Merit Homes Inc., for taking years to complete the jobs and not paying subcontractors, while the company’s owners spent millions buying land in Florida and North Carolina, according to documents.”

“Dan Norden, a real estate agent in Fort Myers, took a dozen or more client/investors to Merit to build homes. On one in Lehigh Acres, Merit received $30,000 to pull permits and begin work, but nothing was done, he said. The lot is vacant, a mound of dirt.”

“The permits sat for a year at the Lee County Building Department until they expired. The owner decided to walk away and let the bank repossess the property.”

“‘The client is going to let it go,” Norden said. ‘There’s nothing else he can do.’”

“Two of George Kaloudis’ Lehigh Acres homes are at a standstill. ‘They took on too many homes,’ Kaloudis said, speculating that the company may have grown too fast. ‘They were a 50-home builder in 2004 and a 500-home builder in 2005.’”

The Palm Beach Post. “The mood at last week’s Southeast Building Conference here was somber. The home building industry is going through tough times, and no one knows precisely when things will get better.”

“‘I’ve never seen a market like this,’ said economist Mark Zandi of Moody’s Economy.com.”

“‘Raise prices,’ said (CEO) Ara Hovnanian. ‘Buyers aren’t buying because they think you’re going to lower prices again. There’s interest but there’s fear. Raise prices 3-4 percent. And quit giving discounts.’”

From CBS 4. “Investing in South Florida real estate used to be a great way to make some great money but the softening South Florida market is in state of flux right now.”

“‘We’ve had several open houses. Very few people have come by,’ Dick Weiss told CBS4’s David Sutta.”

“Weiss and his wife have been trying to sell their Pinecrest home in Southwest Miami-Dade, which sits on an acre of land, for more than six months. ‘A couple of years ago it would have sold in 7 days. We’re optimistic that it will sell,’ said Weiss.”

“Two years ago, there were 12,000 homes for sale in Miami-Dade and Broward Counties. Today that number is 78,000 homes for sale, which is an increase of 650 percent.”

“Despite the fact that the Weiss’ home is in a great location, they are dropping the price $100,000 below appraised value in hopes of getting the right person in the door. ‘We feel we have as good a shot at selling as anybody else. So we have to stay optimistic,’ said Weiss.”

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