The Housing Bubble

The Union Tribune reports from California. “Lenders took back the homes of struggling San Diego County homeowners in record numbers during the first quarter. Real estate agent Linda Ring, who specializes in foreclosure sales, said she has seen many homeowners simply walk away from their properties even if they can make the payments, because they no longer want to pour money into homes now worth so much less than what they had paid.”

“In eastern Chula Vista, where foreclosures have soared, Ring estimates that 70 percent of the homes for sale are distressed properties. ‘They’re selling for practically 50 percent of what they were in 2004 and 2005,’ she said.”

“Agent Kristian Pete said he (secured) a buyer for a foreclosed home in Otay Ranch, which is in the 91913 ZIP code. It originally sold new in 2005 for $970,000 and was listed for six weeks at $589,000. Peter declined to reveal the buyer’s offering price but said buyers currently offer 5 percent to 10 percent, sometimes as much as 20 percent, below the asking figure.”

“‘It affects us all equally,’ said Peter, who also lives in the 91913 ZIP code. ‘Obviously, it’s in my best interest to try to get the situation under control and hopefully sell off the excess so the market can correct itself and go back to a stable if not appreciating market.’”

The LA Times. “In San Bernardino County, Deputy Sheriff Mike Strickland says he is now delivering eviction notices to six or seven foreclosed houses a day, about twice as many as last year. Most of the evictions are in new housing developments, he said, and the occupants have usually abandoned the property by the time he gets there.”

“‘A lot of the homes were 5 or 6 months old. The people got in by the skin of their teeth,’ Strickland said. ‘They can’t afford their payments, they skip.’”

The Fresno Bee. “The number of houses entering foreclosure in Fresno County soared to record levels last quarter. The rate of increase was less than the state as a whole — and significantly lower than hard-hit regions such as Stockton.”

“That didn’t impress DataQuick analyst Andrew LePage, who said the 2,464 notices of default — up 120.8% — sent to Fresno County property owners last quarter was the highest since tracking started in 1992. ‘A year ago you had doubled and you’re still doubling,’ he said.”

“In Fresno County, 31.7% of all resales in March were bank-owned. In Stockton and San Joaquin County, 71% of all existing home sales were houses repossessed by banks. The percentages in neighboring Stanislaus and Sacramento counties were 62.3% and 55.4% respectively.”

“The typical price tag of a foreclosure is about 15% less than a traditional property, he said. ‘Banks are finally doing the right thing,’ said Don Scordino, president of the Fresno Association of Realtors. ‘They are bringing down the price to where it needs to be. A year ago, the most unrealistic sellers in the market were the banks.’”

The Recordnet. “While the existing-home sales market in San Joaquin County appears to be on the rebound, new-home sales continue to stagnate. Greg Paquin, president of the Gregory Group, said that foreclosures need to be cleared out of the home sales market first.”

“‘Basically, they can’t produce new homes to match the prices of foreclosures,’ said Alan Nevin, chief economist for the California Building Industry Association. ‘It’s really just that simple. The market is going to have to stabilize. It probably will take another six months to go through the inventory of foreclosed homes. Now it’s just a matter of the pig going through the snake - and it’s happening.’”

“The numbers of homes in San Joaquin County and throughout California going into foreclosure both hit record levels in the first quarter of this year, DataQuick reported. The actual numbers of repossessions also are soaring.”

“Cameron Pannabecker, owner of Cal-Pro Mortgage Inc. in Stockton and a member of the board of directors of the California Association of Mortgage Brokers, said that…he continues to encounter more and more at-risk homeowners.”

“He said he doesn’t know any experts not projecting that the number of default notices will continue to double or triple last year’s numbers quarter over quarter. ‘As for the homeowner relief, it is not a pretty picture,’ Pannabecker said.”

The Santa Cruz Sentinel. “Dozens of homeowners have flooded the Watsonville Law Center, saying they were duped into buying homes and are now in the midst of foreclosures, the director told the Watsonville City Council on Tuesday, asking the city to come to their aid.”

“More bilingual interpreters, attorneys and other forms of legal services need to be available to the homeowners, along with something resembling crisis counseling. Dori Rose Inda, center director, added that some mortgage brokers duped strawberry pickers and day laborers into thinking they could afford homes, and have since left town.”

“‘We hear emotional stories,’ she told the council, ‘but we don’t prepare them for what is about to occur: That they’re really going to lose their home.’”

The Mercury News. “There’s still plenty of pain ahead for Silicon Valley’s housing market as more homeowners faced the threat of foreclosure in the first three months of this year than during any quarter on record.”

“One San Jose homeowner who owns six rental properties in Santa Clara and Santa Cruz counties said he stopped paying the mortgage on one of the Santa Cruz properties in February, though he has yet to receive a default notice. He said he’s trying to avoid foreclosure by arranging a short sale. He’s facing trouble on some of his other properties, too.”

“The homeowner, who did not want to be identified, said the renter moved out of the Santa Cruz property recently and he can’t rent it for nearly enough to cover the mortgage. He paid $770,000 for the beachfront house, but figures it’s worth $500,000 now.”

“‘Of course, with the market going down you can’t sell anything,’ he said.”

From ABC 7 News. “Two of the counties hardest hit with foreclosures are Contra Costa County and here in Santa Clara County where a senor citizen we spoke to, will now lose her home.”

“‘Had I known when we refinanced last year, I would never have gone for something like that,’ said Carmen Johnson.”

“Johnson is losing the home she has lived in for the past 35 years to a foreclosure sale. ‘I’m 65 years old. I needed a little something to retire on,’ said Johnson.”

“She refinanced her home with a sub-prime loan. Her payments recently jumped from $2,500 a month to $3,500 when the loan reset.”

“‘I didn’t read the fine print and I wanted the money,’ said Johnson. ‘I just took the money without really paying attention.’”

“‘You’ll hear that story over and over again,’ said San Jose realtor Sandra Sample.”

The San Francisco Chronicle. “Tens of thousands of Californians lost their homes during the first three months of the year as foreclosures soared more than 300 percent across the Bay Area and the state. Lenders took back 6,579 homes in the nine-county Bay Area during the first quarter, up from 1,493 a year ago and 4,573 in the fourth quarter, according to DataQuick.”

“Raul Gonzalez and his wife were thrilled after buying a San Jose home two years ago. The feeling faded quickly.”

“Gonzalez, who immigrated from Mexico in 2000, said he unwittingly used a negative-amortization loan. The balance grew each month, and after the teaser rate expired, the monthly payment rose well beyond what the 33-year-old painter could afford.”

“The main lender foreclosed on the three-bedroom home in late January and the family traded their keys for cash, moving into an apartment later that month.”

“The couple filed a lawsuit against the mortgage broker, Realtor and one of the lenders, asserting they were defrauded, among other claims. But the strain of the situation led to health problems, Gonzalez said, and the hit to his credit rating means they have little hope of buying another home anytime soon.”

“‘The reality is, I can’t do anything,’ Gonzalez said in Spanish through a translator, his attorney. ‘Perhaps it’s better to leave these problems and only rent, because I have to take care of myself.’”

The Sacramento Bee. “During the first three months of the year, banks repossessed a record-shattering 5,278 homes in the Sacramento region, DataQuick said. Put another way: The area’s first-quarter foreclosures already are half of last year’s entire total.”

“DataQuick now tallies 15,327 capital-area foreclosures since January 2007 as the post-boom housing crisis has deepened in Amador, El Dorado, Nevada, Placer, Sacramento, Sutter, Yolo and Yuba counties.”

“Last weekend Paul Sosa and his wife moved their furniture out of a Marysville home they bought in October 2005 and sent it to a rental in Sacramento. On Thursday, their Yuba County house will be repossessed.”

“Sosa and his wife found themselves with a home worth less than they owed. Paul Sosa said they were caught in a risky loan scheme that overstated their income, enabling them to buy a $341,000 home now worth – at best – $270,000. When their monthly payment jumped by $500, they were finished.”

“‘I’m not the only one losing a home. … My next-door neighbor, he lost his house, too,’ said Sosa, 71.”

“Area debt and mortgage counselors say the continued housing turmoil has spurred a dramatic change in their clients’ attitude. More and more, they say, they are hearing people talk about simply walking away from their mortgages.”

“Like the hundreds of others in this Cal Expo exhibition hall, Francisco Cervantes and his wife were looking for a home at a bargain price for their three children at a two-day auction of foreclosed homes in Sacramento. On Sunday, the pickings were lush, but their eyes were on a four-bedroom, two-bath home closer to their jobs in Woodland.”

“The 3,800-square-foot home, a symbol of a slumping Central Valley housing market, represents dreams that have been dashed and a dream opportunity. Once valued as high as $711,000, the starting bid on Sunday was just $259,000.”

“‘Maybe it will come down a little more,’ Cervantes said.”

“He left Sunday waiting to see whether a rival’s winning offer would be confirmed. And, just in case, he filled out paperwork hoping for a second chance.”

“Armand Sarcomo and his wife, Rachel, were eyeing a ranch-style home on five acres listed in the Yuba County community of Browns Valley. The house, once valued at $424,000, opened for far less and Armand was ready. He flashed his bid card at $169,000 and a few times more, stopping at $200,000. It wasn’t enough, though, and the property sold at $205,000.”

“‘We’re looking for a second home,’ said the 28-year-old union sheet metal worker. ‘It’s a good investment. We’re a young family trying to move up and take advantage of the market.’”

“Real Estate Disposition Corp. would sell 165 homes on this day, many far below their original value. The company will sell more than 1,000 properties on its nine-day tour of Northern and Central California before it pulls up stakes May 5.”

“The auctioneer’s call sends tuxedoed bid takers sprinting up and down the rows, flashing hand signals, exhorting buyers to pump up the bids. ‘One-ninety-five, one-ninety-five, one-ninety-five. I’ve got 200!’ And, just like that, it’s on to the next one.”

“Mike Burkett of Elk Grove took a cigarette break before heading back inside to bid on a bank-owned home, an investment property to give his children a doorway to their economic future. ‘You look at the appraisal price, and it’s $300,000 from two or three years ago, and it’s starting off at $49,000 or $50,000,’ Burkett said. ‘Three, four years ago, you couldn’t even buy a house.’”

“But he knows what led to this opportunity. ‘You’re bidding on somebody’s loss. You’re thinking about somebody who invested all of that money and now (the home) is on auction,’ he said.”

The Capital Journal reports from Kansas. “Topeka, like much of the rest of the country, is a buyer’s market when it comes to real estate. Home sales fell 26 percent here in the first three months of 2008 compared to sales during the same quarter a year ago. Average sales price in the first quarter 2008 was $115,240, which was down 7 percent from $124,023 a year ago. Janet Carter, president of the Topeka Area Association of Realtors, said subprime lenders have left Topeka, so consumers with less than A credit are having a tough time finding financing.”

“‘We have really lost that group of buyers,’ Carter said. ‘They have nowhere to go.’”

“Toni Shenk, an associated broker, said several foreclosed properties are coming onto the market. ‘It’s a buffet for buyers,’ she said. ‘It’s a good time to buy.’”

The Des Moines Register from Iowa. “Whatever the reason, neighborhoods like Four Mile are taking it on the chin. These days, the more common signs in Four Mile are the ones advertising homes for sale. Plenty are foreclosed homes. At least 75 homeowners have had foreclosure petitions filed against them between January 2005 and February 2008, according to the Register’s analysis of court data.”

“‘It’s definitely impacting the suburbs and the new-build areas as well, but the greatest percentage of foreclosure filings are happening in the lower- to middle-income neighborhoods,’ said Danny Wagener, a community organizer for Des Moines Citizens for Community Improvement. ‘It’s a lot of families who are on the cusp of homeownership who have been misled or put into situations that will inevitably fail.’”

“The median assessed value of the foreclosed homes was $96,000. That’s nearly $50,000 less than the 2006 median value of households in Polk County, about $142,000.”

“‘They’re not getting the money they want out of these houses these days, the market’s so bad,’ said Kevin Lancial, who works for Des Moines’ public works department and has lived in Four Mile for nearly 20 years. ‘And some people just get in over their heads.’”

“Lori Hall and her husband moved into a two-story, four-bedroom house in October 2004. The next year, in order to borrow on their equity and renovate a bathroom, they refinanced with an adjustable-rate mortgage. Lori said the process was confusing for these two first-time homeowners, but they thought they were getting a deal.”

“Two years after refinancing, their house payments increased from $953 a month to $1,350. The Halls couldn’t afford it and quickly fell behind in payments. And after a short period of unemployment, they declared bankruptcy. Now, they’re looking for a rental house, as their home is in the midst of foreclosure.”

“‘When you talk about Four Mile out here, there’s a lot of homes for sale right now,’ Lori Hall said. ‘If we’d stuck with the original loan, we absolutely wouldn’t have these problems today.’”

“Bob Mahaffey, a Des Moines city councilman for the east side, said some homeowners in the area assumed increasing home values would offset the price of their loans. ‘But with the downturn of the real estate market, that never happened,’ he said.”

The Indianapolis Business Journal. “Despite the national housing market’s slump, more than three-quarters of U.S. homebuyers remain confident their purchase was at least as good an investment as stocks…according to a new survey released today by the Metropolitan Indianapolis Board of Realtors.”

“‘Real estate is a long-term investment. Don’t buy and expect to make a fortune in six months,’ said Realtor John Creamer, a former MIBOR president. ‘But if you’re looking for long-term wealth accumulation, real estate in central Indiana is still a great place to invest, either in a home or a rental property.’”

“‘[Local] sales have been up and down. But buyers are still showing up at open houses and asking questions,’ said Creamer. ‘We never went through the ceiling, because we never had investors buying just to get appreciation. Our investors were a little more savvy.’”

“When considered purely as an investment vehicle, said Ball State Bureau of Business Research Director Michael Hicks, homes don’t necessarily compare favorably against stocks. But individuals can’t live inside a stock, or enjoy the intangible benefits of a well-appointed kitchen, cedar deck or recreation room. Taking all factors into consideration, he said, a house is a good long-term investment.”

“‘I’m not sure they are if you’re [just] speculating on it, but they are if you’re living in it,’ Hicks said. ‘Or at least I hope so, because I’m writing a fairly big mortgage payment every month.’”

From Today’s TMJ4 in Wisconsin. “Foreclosures are a growing problem in Milwaukee. This year alone over 1,600 people had their homes foreclosed on. ‘It’s a hard, hard battle. I have been fighting it for a while,’ Monique Ray said.”

“Ray is in a desperate fight to save her home. ‘I think owning your home is one of the most important things you can do, or you can have,’ Ray said.”

“Her annual interest rate is 11 percent. Her mortgage jumped from $700 to more than $1,600 a month. ‘I am a diabetic and I have been sick with stress worrying about bills and how I am going to pay my mortgage,’ Ray said.”

“The experts say the situation is going from bad to worse. Just ask steel worker Dennis Timlin. He makes good money but he spends every dime he makes on his bad mortgage and 12 percent interest rate. He is looking for any help he can get. ‘I am in trouble,’ Timlin said.”

The Detroit Free Press from Michigan. “At the end of 2007, there were 40,298 houses on the market in Wayne, Oakland, Macomb, Livingston and Washtenaw counties. That represents a 17.4-month supply at the current sales pace. The supply of attached new housing, such as condominiums, ranges from 14 to 24 months in the three counties.”

“The Forte Group organized in 2006 to capitalize on the huge oversupply of homes on the market. The company works with local builders to move inventory by purchasing the buyer’s existing home for 90% of the appraised value.”

“They accept just one out of eight applications because the owner isn’t ready to accept a price lower than anticipated, or he or she owes too much on the house. ‘We are trying to give fair value of what the market will pay,’ said Joshua Britton, Forte’s partner. ‘There are a lot of people in this market who are stuck. But there are a lot who aren’t.’”

“But the money isn’t in selling the houses, and they sell many at a loss to control inventory. Builders pay their fees ranging from 12.5% to 15% on the purchase price of the new home. ‘We usually sell the house at a loss,’ Britton said. ‘You can either sell a house for a gain or you can sell a house fast, but you can’t do both.’”

“Marketplace Homes LLC, which started in 2002, began operations with a rent-to-own program and that changed when the real estate bubble burst.”

“Marketplace’s buyout program includes a guaranteed three-year lease so the customer can purchase a new home, knowing that the old home will generate income to pay the mortgage and expenses until it sells. The company last year purchased or leased more than 40 homes and generated more than $10 million in new construction sales for builders.”

“‘Now the market has shifted, and people can’t get rid of their homes. They are competing against banks that are dropping the prices,’ said Skip Chelton, the company’s VP. ‘It is a terrible time to sell in Michigan. Conversely, it is a terrific time to buy.’”

The Star Tribune from Minnesota. “Until recently, local governments in Wright County have been large beneficiaries of the explosive housing growth. Wright County, which welcomed the growth, and in some areas did little to control it, is now paying the price.”

“Housing values are declining at a time when many local governments are in the midst of building new schools and roads and expanding waste-water treatment plants. And vacant homes and half-built subdivisions do little to attract employers or shops that might help turn things around.”

“‘It should have been obvious there was a problem, when developers kept building and building and building, in spite of the fact that many of their houses weren’t being sold,’ said Fred Naaktgeboren, mayor of Buffalo. ‘A lot of people wanted to believe everything was all right.’”

The Spokesman Recorder. “Minnesota Governor Tim Pawlenty has reportedly threatened to veto the Minnesota Subprime Foreclosure Deferment Act recently passed by both houses of the state legislature. In an effort to change the governor’s mind, a group of protesters set up a ‘Subprime City’ last Saturday, made up of tents and cardboard boxes outside the Governor’s Mansion in St. Paul.”

“In an April 1 press conference, Pawlenty said he is concerned about the potential effect on credit for the entire Minnesota mortgage market if the bill becomes law.”

“ACORN officials calculate that every 15 minutes a home in Minnesota is being foreclosed. ‘There are houses being foreclosed all over the state of Minnesota,’ Senior Organizer Vera Ashley pointed out. ‘Everybody didn’t take a loan out just to go buy a new car. They wanted a home, and now they’ve lost it. [They] were conned, maneuvered or tricked into adjustable rate mortgages.’”

“Sharon, who lives on St. Paul’s East Side (she asked that her last name be withheld), was among the protesters. She and her husband are currently facing foreclosure on their three-bedroom home that they purchased in 2006.”

“‘We haven’t lost our jobs,’ explained Sharon. ‘We did not get in over our heads. It was very affordable for us. When I signed the loan, I was under the impression that it would be a fixed rate. I was not aware that at a certain point the loan interest rate would skyrocket.’”

“‘The payment went from $1,675 to $2,300 a month,’ said Sharon. ‘The property tax increased while the value of the home decreased, which made it almost impossible for us to afford.’”

The Weseca County News from Minnesota. “Ten years ago, Realtor Charlie Leach got a call asking if he wanted to handle a foreclosure listing. He took it. Today, Leach handles foreclosure homes almost exclusively and works 80 hours a week to keep up with listings within about an hour’s radius of Waseca.”

“‘It’s almost overwhelming,’ he said.” “In 2007, Leach sold 135 houses; all but two of them were foreclosures. So far in 2008, he has listed 45 homes, compared to 25 at this time a year ago.”

“Occasionally, Leach has to actually remove people from their homes, which is ‘not so pleasant.’ He says he always tells them he doesn’t blame them for the foreclosure because ‘half my friends are four paychecks away’ from the same situation.”

“‘Usually they stay mad at the bank, but they don’t stay mad at me,’ he said.”

“His current foreclosure listings range from $20,000 from $585,000 and, while a certain percentage are the result of medical crisis, a divorce or a lost job, Leach said in most cases the homeowners were simply overextended.”

“The effect of the foreclosures on the local market is not that big, he said, but it is a vicious cycle. ‘The more properties I get, it drags down the value of existing homes,’ he said.”

“He expects the ‘foreclosure high tide’ to last another two years, perhaps three years if the federal government gets involved, because it would ‘just delay things another year.’”

“For each foreclosure, the result for the bank is anywhere from a slight profit to a $100,000 loss, with an average loss of $45,000 loss per house.”

“Most of the time, for the person buying the property, ‘it’s a pretty good deal,’ Leach said. He just wishes first time homeowners would have to take a class on mortgages and finances in general before signing those loan papers.”

The News Journal reports from Florida. “The local housing market shuddered again in March as sales of previously occupied, single-family houses plunged 27 percent from a year earlier and the median price took a double-digit tumble, too. Worse, the declines in both sales volume and prices were from year-earlier levels that were already sharply down from historic highs. Together, the two years of decline made for eye-popping paper losses for local homeowners.”

“Nancy Dance, president of the Daytona Beach Area Association of Realtors, said buyers were still waiting, thinking that home prices will go even lower. ‘We are seeing an increase in the number of buyers out there,’ Dance said. ‘But the prices just haven’t hit home with them yet.’”

“She said that in years past one could expect sales to pick up after a presidential election. ‘But, this is not a typical year,’ she added.”

The Orlando Sentinel. “Last week, Orlando Regional Realtor Association President Steven Moreira spun the latest existing-home sales report as ‘moving in the right direction.’ But tell that to countless accidental landlords who have tried to sell their properties only to become so mired in this frustrating market that they eventually take down the ‘for sale’ sign and try to recover some of their monthly expenses by renting.”

“Pete Frias’s been through it. Twice. Frias, a Realtor in Washington, D.C., was one of many flip-happy buyers at the height of the housing frenzy who snatched up homes in hopes of turning quick and easy profits.”

“‘I’m a capitalist, and I understood that I took a risk,’ Frias told me. ‘Obviously, it backfired.’”

“One of his targets was an apartment-to-condo conversion unit in a Casselberry complex called Cabana Key. ‘That’s my worst one,’ he said, of his collection of properties that span to Austin, Texas, and St. George, Utah.”

“Frias closed on the unit for $136,400 in September 2005. He almost immediately put it back on the market priced in the $160,000s. No takers. After four or five months, he decided to find a renter and hired a property-management company.”

“For a little more than a year he took a loss on the property each month. When his tenant moved out he tried to sell again, this time priced in the $130,000s. ‘Not a single person walked through the door for six months,’ he said.”

“Now he’s back to leasing the unit, taking a loss of more than $500 each month. ‘I would sell it right now for less than I owe on it,’ he said. ‘I probably would be willing to bring money to the table.’”

“He’s just waiting for the right time, part of that invisible but lurking inventory that could pop up any time and prolong the buyer’s market in the Orlando area.”

“About two dozen people who have had their homes foreclosed upon protested at the Orange County Courthouse on Tuesday, saying a foreclosure task force appointed by Gov. Charlie Crist hasn’t gone far enough to help them or end predatory lending practices.”

“Chenet Dorcelus said he can no longer afford the increasing monthly payments on the Edgewood home he and his wife bought last year but, unbeknownst to him, the loan had a $25,000 penalty for paying it off early. ‘I can’t sell it,’ he said.”

“At Tuesday’s press event, William Moore talked about his parents refinancing their longtime Orlando home with an adjustable-rate loan in 2005. The payments have now doubled, and the couple can no longer keep up.”

“‘There loans are designed to fail,’ Moore said. ‘It’s like selling you a chair that you wouldn’t be able to sit in.’”

From TC Palm. “The Realtors association said Martin and St. Lucie existing single-family home prices continued to spiral down. They dropped 29 percent to a median $169,700 from $239,700 in March 2007. That’s the lowest figure since March 2004.”

“‘Remember when things ran up the market and things went nuts? Now we’re seeing an overreaction in the other direction with prices,’ said Scott Wingfield, president of the Realtors Association of St. Lucie. ‘No question, it’s a bad time for people that want to sell a home, have to sell a home or need to sell a home. But for those that buy today, I’ll bet the farm that in four, five or six years from now, they will have hit home runs.’”

“‘I believe we have reached a point where buyers can’t afford to sit on the sidelines any longer watching these fantastic deals pass them by,’ said Dave Derrenbacker, president of the Realtor Association of Martin County. ‘Prices have come down so far that it is not uncommon to see sale prices that mirror 2002 levels … buyers get a do-over and I think the smart ones are realizing that.’”

The Palm Beach Post. “Home prices fell again in Palm Beach County and the Treasure Coast in March, thwarting homeowners’ hopes that prices had hit bottom. Mike Dooley, former president of the Florida Association of Realtors… pointed to a home in Sewall’s Point that recently sold for $310,000 after trading for $595,000 during the boom. And a home in southern Martin County sold for $330,000 after last selling for $550,000.”

“Pessimists point to signs of more pain for the housing market. Thousands of foreclosures are poised to flood the market, pushing down prices, and a weakening economy has cast a cloud over sales.”

“‘Everybody out there is a fence-sitter,’ said John Burford, an economist at The International Bank of Miami. ‘And even if you want to buy, you’ll have a hard time getting credit. Historically, when you have a real big debt expansion that lasted as long as this one did, it usually takes a long time for it to adjust.’”

The Miami Herald. “South Florida’s real estate market is still in the double-digit doldrums compared to a year ago. In Miami-Dade, existing single-family homes sales in March were down 56 percent vs. a year ago.”

“Miami property owner Rafael Fortuny has spent the last year trying to unload six town homes. After slashing prices by $30,000, he has managed to sell four of them — the last one in October.”

“Fortuny says he hands out about 5,000 fliers a month hoping to stumble on a buyer willing to put down $270,000 for a three-bedroom, two-bathroom house. ‘This last weekend we had maybe 10 families look at the property,’ he said. ‘Usually we have, oh, zero. So things seem to be picking up.’”

“But even eager clients are finding it hard to get loans, he said.”

“South Florida’s figures mirrored statewide data. Florida’s Realtors sold 9,142 single-family homes in March — a 26 percent decrease from last year. The median home price was down 15 percent to $205,600.”

“Condo sales slid 24 percent vs. March 2007 to 3,145 units, and their median price dropped 20 percent to $176,600.”

“At the end of March there were 4.06 million homes for sale in the United States. At the current rate of sales, it would take about 10 months to churn through the existing inventory, the National Association of Realtors said. Fortuny hopes he doesn’t have to wait that long to shed his two properties. ‘This has been a nightmare,’ he said. ‘I am just dying to get out.’”

“At the Fountains of Tamarac, the condo association has no insurance, a couple of unit owners are cutting the community’s grass themselves, and 90 percent of the unit owners aren’t paying their maintenance fees. Even two banks, both of whom acquired their condos out of foreclosure, haven’t paid their dues.”

“Condo President Cesar Gonzalez views the start of hurricane season with dread. ‘We’re hurting really bad,’ he said. ‘I don’t know if I can handle the stress.’”

“At the Club at Brickell Bay, residents say they have seen everything from nonworking elevators to broken equipment in the gym to cutbacks in cable service.”

“Kelly Ladwig, treasurer of the Townhouses of Plantation, said her board recently doubled maintenance fees after taking over the association from the developer, who converted it from rentals to condominiums. ‘A lot of people bought here as investors, and they were not able to sell. We now have a high foreclosure rate/nonpayment rate,’ said Ladwig.”

“Even if unit owners can find a buyer, Ladwig said, some banks are looking at the association’s books and refusing to make the loans. This could also block condo owners who try to refinance their loans.”

“What’s worse is the problem can snowball: The higher maintenance fees can push even more unit owners into financial trouble, leading to even more foreclosures.”

“‘This is like an avalanche,’ said Jan Bergemann, president of a statewide group of condo owners. ‘More and more people don’t pay their dues, forcing other people to pay the cost. I don’t know the solution.’”

“Lewis Freeman, a Miami lawyer who works with financially distressed properties, said this problem is going to get worse.”

“‘I think it’s like hurricane warnings,’ Freeman said. ‘They tell you to get ready a couple months before. Get batteries and water. This is going to absolutely be a catastrophe. Nobody ever saw this coming. You look at what’s going to happen with these things: utter chaos.’”

The News Press. “Some 220 houses - almost all of them in Lehigh Acres - stand abandoned in Lee County as stark reminders of a derailed real estate market. A record 10,700 foreclosures last year are stark evidence of the market’s condition.”

“‘Juveniles are squatting in them. Criminals are squatting in them,’ said Lee County sheriff’s Capt. Ed Tamayo, who oversees Lehigh Acres.”

“In Lehigh, the houses are in various stages of construction. Some are eyesores with weeds and piles of dirt overtaking yards. Others are unsafe because of exposed construction materials. One property on North Richmond Avenue in Lehigh is a slab with pipes rising over the concrete. Erosion is undercutting the slab at one corner and at a second point along the front of the slab.”

“Other houses have tar paper on the roof but no shingles. No stucco has been applied to the concrete block walls. A house at 5204 Lee St. has gaps in the tar paper on the roof and an exposed septic tank and drain field.”

“Children broke into the home and left graffiti, said neighbor Andy Morris. Two doors of the boarded-up house were ajar recently. Houses in such condition can further erode property values in an already-depressed market, but Morris expects to live with the situation for awhile.”

“‘There are too many houses for sale out here,’ he said.”

The Herald Tribune. “Luxury home builder John Cannon Homes has taken to the other end of the spectrum by creating a small division to complete and sell homes that are unfinished because the buyers or builders walked away from the work site.”

“‘We’ve had some situations where customers have more or less said, ‘Here, bank, this didn’t work out for me,’ and they are turning their keys into the lender before construction is finished,’ founder John Cannon said.”

“‘It’s not only an interesting way to stay alive, it’s also a community service,’ said Mary Dougherty-Slapp, executive officer of the Home Builders Association of Manatee County. ‘I have one of these homes in my neighborhood, and it’s sad, because it’s a reminder of how bad things have gotten.’”

The Bradenton Herald. “The median sales price of existing homes in the Bradenton-Sarasota market fell more than $52,000 in March to $239,300, compared to the same month a year earlier.”

“Local agents all agree that there are plenty of well-priced homes on the market and those who are willing to hold onto their homes for five to seven years will see a return on their investment.”

“‘Traffic is good…but they are not buying,’ said Robert Drane of Re/Max Alliance Group.’Part of the problem here is what we defined as normal has changed. Real estate is a long-term purchase. It’s a five-year minimal investment if you want to ensure you’ll make money.’”

“‘The market will eventually come back to where it was,’ said Denny Delarco, manager of Wagner Realty’s El Conquistador office.”

The St Petersburg Times. “The latest home sales figures showed an interesting anomaly: While prices continue to plummet, the home sales decline in the Tampa Bay area was less than half the state average. What seems to be swaying the market is a rash of short sales.”

“Jim Knetsch of RE/MAX Realty Associates in Carrollwood said, ‘Some of the best bargains right now are short sales. In many of the communities in central Pasco, I’m guessing half the properties or more are truly in short sale territory.’”

“Knetsch is banking on further activity this spring, as lenders sign off on short sales rather than press their claims all the way to foreclosure court.”

“‘What people have to realize is that January and February were two of the slowest individual months since at least January 2003,’ Knetsch said. ‘Hopefully we’ve survived the worst of the market.’”

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