Pre-Conversion Deal Becomes ‘House of Cards’
A Boynton Beach condo conversion has this discount on craigslist. “Final days of the developer’s closeout special at our St. Andrews at Boynton Beach condo conversion. The developer needs to close out this project and will now pay your 1st year’s mortgage for you!. Buyer will also have the option of deducting the total developer contribution (the sum of the above mortgage payments) from the purchase price, or applying it towards closing costs and effectively eliminating them.”
And the Sun Sentinel reports on what a failing condo project looks like. “In 2004, Jackie Badome agreed to pay $360,000 for a two-bedroom condominium at Eden, a former apartment complex in Boca Raton. She put down 10 percent in cash for the condo that was supposed to be ready in March 2005. But the developer, Ceebraid, didn’t deliver, blaming a busy hurricane season for the delay. Ceebraid missed at least two more deadlines and now promises Badome can move in by September, except that construction on the job site stopped months ago.”
“This is an example of the struggles area developers face as the once-hot housing market slows down. Increasing costs of materials are leaving builders in the lurch, and lenders are becoming more restrictive as the condo market tightens.”
“‘It’s pretty disappointing,’ Badome, said. ‘You make life plans based on where you’re going to live, and this puts everything on hold. I’m sure I’m not the only one in this position.’ Badome, a real estate agent in Boca Raton, is one of an estimated 200 prospective owners at Eden wondering when, or if, the condo conversion will be finished.”
“Would-be buyers also are questioning the future of another Ceebraid project, Bocara, also in Boca. Ceebraid is facing construction liens and lawsuits, but Adam Schlesinger, a company vice president, insists that Ceebraid will resolve those and finish both Eden and Bocara.”
“A Ceebraid affiliate filed for Chapter 11 bankruptcy reorganization Feb. 10 in West Palm Beach. The filing is related to another of Ceebraid’s properties, Holiday Isle Resort in Islamorada, Schlesinger said.”
“Back at Eden, prospective buyers and real estate agents are fed up. ‘This may be a house of cards,” said (broker) Anthony Cutaia,. The Boca Raton real estate firm filed suit against Ceebraid, alleging the company failed to pay commissions for units sold at Eden.”
“As prices and interest rates rise and speculators leave the housing market, demand for condos is waning, said Jack McCabe, a Deerfield Beach real estate analyst. Condo conversions were especially hot during the past few years, but those deals have slowed as well, McCabe said. ‘It’s a complete opposite of the feeding-frenzy attitude just last year,’ he said.”
“Joe Bova, (a banker) in West Palm Beach, said federal regulators want lenders to be more careful in 2006. ‘The market is definitely softening; there’s no question about that,’ Bova said. ‘If there are 30,000 units coming, and only 15,000 units will be consumed, what’s going to happen to the other 15,000?’”
“Myra Rubenstein, a Boca Raton real estate agent, agreed to buy two condos at Eden as an investment and also has a client waiting to buy. Rubenstein said she and other agents are upset because Ceebraid’s delays jeopardize their credibility with clients. As a result, she’s shying away from preconstruction deals. ‘It’s put a bad taste in my mouth,’ Rubenstein said. ‘Why don’t they finish what they start?’”
Thanks to the readers who sent these links in.
Stories like this raise my awareness of just how many of the investors/speculators in this market are realtors. I didn’t realize how many units these folks were buying themselves. It might tie in to one of the previous posts where the realtor was advising folks to hold onto their properties and wait for the market to come back around. It really hurts one’s opportunity to sell your investment property if everyone else is dumping theirs on the market.
I would love to know what RE agents are doing with *their* properties. Are these insiders leading the rush out the door? Or do they believe their own hype and are hanging on to properties.
I wonder if there are any disclosure requirements for RE agents and the properties that they own?
Yes, I believe there is and they have to mention it in the MLS description. I’m constantly seeing “seller is listing agent”, “owner/agent”, “owner is realtor”, “seller related to agent”. etc.
Obviously there were a lot of agents buying up properties in my area.
The agent I was using last year (teamed with RE wife, middle aged, kids in school) cashed in all family savings and 401Ks and got a no doc loan for a beach house in the Outer Banks . . .
anybody have any info on the holiday isle property. they paid something close to $100 million for it, could never figure out how that price was justified.
Re: Hoilday Isle….Wonder what the business model was for that deal? 100M ?! Selling Rum Runners ,and fish&chips? ..Someone walked away from that deal happy….
Do you mean Holiday Isle in the Keys, home of the tiki bar?
Article in the paper said the company that bought it is in bankruptcy…
http://tinyurl.com/qednk
I loved Holiday Isle when my wife and I went there in May 1998. Great time … good drinks … nice room right by the bar. I hope nothing happens to it as I’d like to get down there again. Interesting aside: When we were there, another bar on the property burned to the ground, and took a couple cars parked next to it with it. Some of the embers almost set a few other palm frond-type roofs on fire at the dive hut, etc. But we didn’t let it spoil our weekend getaway!
make that 1999. Man, does time fly…
This is the market I am really rooting for a horrific crash in.
Amen TxChick57. I live in West Palm. I too am rooting for an all out implosion. The “For Sales” signs are multiplying down here. The condo market is going to be a bloodbath. Sales are tanking, inventory is building, and more projects are being announced. Unreal. I am happily renting an apartment, one of the few on my street that hasn’t gone condo.
What do you know about Margate. That’s where my friend is who thinks his little slice of heaven is going to escape the carnage and go up indefinitely. I think he’s going to be lucky to sell at any profit if he doesnt’ price aggressively now and dump.
Not too familiar with Margate. It is in Broward County very close to Fort Lauderdale. I personally don’t think South FL has the economy to support these insane prices. Our economy is based a lot on tourism/service industries and to some extent supporting the retirees. None of those areas have been historically high paying jobs. We have a severe shortage of affordable housing down here and the middle class, which is a strong part of any community, is being squeezed out. In my opinion, the price run-up has been due to rampant speculation. You tend to see that in booms in the “hot”or “sexy” areas like Las Vegas and Miami. The Miami skyline is cluttered with cranes. Some projects are being cancelled and I wouldn’t be surprised if you see half-built cement shells/skeletons of projects that fall through. Our inventory is exploding and the speculators have left.
I have a friend here in Palm Beach Gardens that has dropped her selling price from $320K to $285K and still can’t get a serious look. I have given her the same advice as you have given your friend. Be one of the first to the exits and price aggressively. I told her to drop it to$250K. Your advice is correct, in my opinion. No market is imune to a downturn. It is not different here and your friend will soon realize it. Those markets that have had the most appreciation are ripe for the biggest correction.
http://southfloridarealestatebubble.blogspot.com/
TxChick57,
Above is a link to a great South FL blog. It focuses a bit more on Palm Beach, but it has some great info. Have your friend read it, maybe he’ll start to realize what is onthe horizon.
I used to live in Margate - it’s a proletarian $hith0le. Don’t walk - run far, far away!
Why would you root for a “horrific crash”? Who do you think or want to take the hit? Are you wanting to buy in a couple years? You state that you have a friend who owns there. I don’t understand the thinking or motives involved in these type of statements.
I think a horrific crash is those parts is inevitable whether one hopes for it or not.
va_investor :
I don’t belive TxChick57 wants harm to come to any specific person. Many people believe that this insanity that has taken the prices of RE sky high will have a bad ending. I for one believe that this insanity has been caused primarily by speculators, and has resulted in hardship and lack of decent affordable RE for the average person. If there is a “horrific crash” that causes the speculators (so called investors) to crash and burn, not many average citizens will feel any sympthy for them. “Live by the sword, die by the sword.”
You got it right.
I agree. Some of these bloggers are really nasty, and astoundingly selfish. Unfortunately for them, what one wishes upon another often lands upon oneself. While they’re jumping up and down with glee clapping their hands at the thought of a depression, it clearly hasn’t dawned on them that the Universe doesn’t play favorites, and that disasters affect everyone in their paths. This issue has come up again and again on this blog, but malicious people apparently have nothing better to do than to sit around hoping other people (they don’t even know) suffer.
Years ago, there was a Twilight Zone episode about a fanatic who spent all his time focusing on the “evil” people of the world, and tracking their movements. He was concerned that they were not easily recognizable, so he decided to make them all small at a specific hour. He called the Press and announced his plan. When the clock hit the appointed time, he himself became tiny.
Many religions have some version of the Golden Rule, but the most advanced (Buddhism, Taoism, some sects of Bon, etc.) also note that ones thoughts are as important as ones deeds, and that wishing harm on another is metaphysically identically to inflicting it, with identical karmic rebound. Everything that exists begins with a thought, and incessant thinking of misery and financial ruin is precisely the thing that brings it about. Unless one lives on a mountain top or in a cave, there is no escaping the consequences.
All those investors out there are also people trying to support their families, and while their methods may be disturbing, their motives are not necessarily evil. We live in a capitalist society where this stuff is actively encouraged by the government, and always has been. There is no easy answer, but hoping for millions of people to be wiped out and destroyed by a 1920s style depression is hardly indicative of a superior being.
I agree with va-investor, that, that is, not with WillM.
Wow, Anton, what a great post! I’ll confess to a little Schadenfreude, myself, right here and now. No good can come of that…
but it is capitalism in action,at its best or worst it is about making money,this is the system we embrace,and if i should profit from anothers failure so be it…
Very well said Anton.
I don’t think there is a problem with being an investor. We all here are investors (stocks, gold, oil, etc.). The problem with the current RE situation is that it is very similar to the dot com era. It is a “ponzi scheme”, “house of cards” or “pump and dump” … you name it. The price at which RE is changing hands is totally disconnected with the actual value and affordabilty. The majority of the current “investors” are not investing, they are “speculating” with a hope of finding a bigger fool. Like in any other “ponzi scheme”, the last man holding the bag will suffer the most. I am not sure if sympathy for him/her is in order.
I think we need a group hug. LOL
Anton,
I hear what you’re saying. What goes around comes around. But don’t you think the speculators started it, and they’re getting what they deserve? You think the speculators that are buying 5-6 preconstruction houses or bidding way above asking price so they can get the place actually stop and think about new college grads or hopeful first time buyers for whom they’re making home ownership dream unreacheable?
No they don’t, so I won’t feel bad either when they lose everything.
Silly boy! Immigrants, aging baby boomers and aliens from the planet Remulon will stand in line to buy these untis.
you forgot wealthy latin americans and echo boomers! tell them to get there fast, inventory is climbing!
Ha ha…How about teenage immigrant welfare mothers on drugs… It would be funny if not so sad the sales claims that were made before. We’ll look back in wonder……I think it appropriate that South Fl be the epi-center of tyhe crash as was the case in the 20’s. Maybe, SD, or Phoenix though…..
“‘It’s put a bad taste in my mouth,’ Rubenstein said. ‘Why don’t they finish what they start?’”
that’s what the lender will be wondering when you default on your 2 ‘investments’
“‘It’s pretty disappointing,’ Badome, said. ‘You make life plans based on where you’re going to live, and this puts everything on hold
Transalted: This sucks I thought I was sure to make a $100K on each unit, plus being the sales agent and the buyer agent I could have paid my self 6% commiss, dann builders I have a mercedes and BMW lease payment coming up.. Boo Hoo
from reading it I got the impression she was downsizing, not speclating on multiple condos.
realtors = not financial wizards
“bright abd airy” descibes their math skills
I currently rent in Broward (job related). My wife laughed as she showed me a flyer we received in the mail yesterday from a local Real Estate School, “Realtors, the Most Demanded Profession in South Florida”. Say what? Well I guess the school can drain a few hundred bucks tuition from the morons who are dumb enough to enter that saturated profession. Hey flat, Why did you state,
“realtors = not financial wizards
“bright and airy” descibes their math skills” in your post. The real estate school claims to teach you everything you need to know to pass your state license exam in only one week, and if that isn’t convenient you can do it in one weekend (one weekend for mortgage broker training also). I’m sure that all of their graduates are well educated! Jeez, did I screw up…4 yrs undergrad, 2 years grad school. I could have just went straight to real estate school when I was 18 and been a kazillionaire by now.
I mentioned on here a few months ago that my friend’s secretary left their firm to become a mortgage broker in S FLA. Well, she came begging for her job as a secretary back after 2 months and no sales.
Did he give her the job back?
Of course, math and typing skills are not equivalent.
hehehhe she was going to live in several places at the same time ! where’s your empathy
Look at the bold part down there? How long can housing keep saving the American Consumer and keep them spending. After all, they make up for 75% of spending.
Higher debt, lower wages curb Americans’ net worth
Higher debt, lower wages curb Americans’ net worth
A Federal Reserve survey finds growth in net worth weakened by rise in debts.
By Jeanne Sahadi, CNNMoney.com senior writer
February 23, 2006: 11:12 AM EST
NEW YORK (CNNMoney.com) – Americans’ net worth grew between 2001 and 2004, but not nearly as strongly as it did between 1998 and 2001, according to the Federal Reserve’s triennial Survey of Consumer Finances released Thursday.
The big reason: while household assets increased, thanks largely to increased home ownership and higher housing prices, debts – especially home debt — rose considerably more.
MORE ON YOUR NET WORTH
• Millionaires in the making
• Debt: How do you stack up?
• Do women really earn less than men?
By The Numbers
American households, ‘01 - ‘04
• Wages: Down 6.2%
• Net worth: Up 1.5%
Income Another reason: A decline in wages. While the median income rose 1.6 percent to $43,200 after adjusting for inflation, median wages fell 6.2 percent. Wages make up the largest part of family income. Investment income also fell.
Despite lower interest rates between 2001 and 2004, families spent more of their incomes paying off their debt.
Net worth Median net worth between 2001 and 2004 rose 1.5 percent, meaning half of all households saw a larger increase. The mean average of all households’ net worth rose 6.3 percent.
By contrast, between 1998 and 2001, the median net worth increased 10.3 percent, while the mean rose 28.7 percent.
The increase in net worth in the latest survey was due mostly to an increase in home ownership and an increase in housing prices.
Savings When it comes to savings, the percent of families who said they’d saved in the preceding year fell 3.1 percentage points to 56.1 percent.
And similar to past surveys, 7 percent of families said their spending usually outpaces their income, while 16.1 percent said they spend about what they make, 36.1 percent said they save income left over at the end of the year and 40.8 percent said they save regularly.
Debt The share of families with debt rose 1.3 percentage points, to 76.4 percent. Among families with debt, the median level rose 33.9 percent, far greater than the 9.5 percent increase seen between 1998 and 2001.
Stock ownership The percentage of families investing in stocks, directly or indirectly through mutual funds, fell 3.3 percentage points, to 48.6 percent.
I screwed that one up
How can 76.9% of people believe they are saving every year, yet 76.4 of families are living with debt ? If your making the minimum payment on all your debt accounts and have some cash in the bank != savings.
Test
Turning bold off off
test
I posted this last night, get on the bmore RE bus!
I had visited the St Andrews complex in Boynton in the linked Craigslist ad with my fiancee before we gave up on buying. Let me put it this way: At the time we were renting an almost identical model of apartment at another complex. Our rent - $1075/mo.
Now the same type apartment (oh sorry “Luxury Condo”) in St Andrews is going for $251k. Do the math: 30yr fixed is $1475/mo + the $188/mo HOA + taxes, insurance, upkeep, etc.
So basically I’m looking at paying $2k/mo. for a place I can rent for half that. Needless to say, we booked it out of there really quick. There were a lot of “investors” that at the time looked really interested (this was last summer.) I guess maybe some of them came to their senses before signing on the line, since they didn’t sell out. I almost feel sorry for the ones that did, and now have to know that the developer’s closeout of 1yr free mortgage is undercutting their “investment.” Oh wait, no I don’t feel bad.
I see these developments in Boca that are mentioned regularly and laugh. They are extremely overpriced. Boca Raton, Coral Springs, Parkland, Weston, and other high end markets will be the last to crash as the homeowners ( not condo) are more affluent and can hold out longer than say Margate, Ft. Lauderdale, Delray.
This crash is playing out similar to the last one inthe late 80′2 early 90’s but in my opininion to a much larger extreme. Just like any other bubble, the pendulum is going to swing to the downside as much of an extreme as it did to the upside and then find a correct level. I figure at least 30% . Wait until the 2.5 trillionin resets start.
I’ve noted a number of the properties I see up for sale on the local craigslist say owner/realtor or something. I’m getting the feeling that a number of the local properties for sale are also owned by realtors.
I wonder how many sheeple listened to the realtors about future earnings and justification for the recent run ups in prices? With the realtors looking to unload their own stash, that is pretty ugly. I do recall someone on this or patrick’s forum stated that a large number of recent realtors(tm) are people who are looking to get an edge on the competition and access to the tools for flipping their own properties.
va investor writes:
“Why would you root for a “horrific crash”? Who do you think or want to take the hit? Are you wanting to buy in a couple years? You state that you have a friend who owns there. I don’t understand the thinking or motives involved in these type of statements.”
Simple. The average family needs to have reasonably priced housing. It is good for the economy if the basic cost of living is affordable. The speculators have jacked it up, but in the long run, because of overbuilding, the crash will come and things will return to normal.
Brad,
How do you selectively “punish” speculators, investors, or whoever you think should take the hit vs. homeowners who bought in the past 2 years?
Under your thoughts, government should further subsidize home ownership or somehow regulate pricing. Is this what you want? Or do you want specific people (those who bought in the past 3 years )to be spanked badly?
Those that bought in the last 3 years will be spanked financially! Unfortunately, so will many others who are indirectly exposed to the mega-bubble.
Brad,
You hit it. It is not out of malice that I want to see all these speculators crushed, it’s out of sympathy for Joe Sixpack. The greed of speculators unconcerned with real world cost of living that will be crushed deserve no tears.
All the regular wage earners in the country being robbed and punished by unjustifiable housing prices get my sympathy. Sure the collapse of prices will hurt, so what?? In the long run it will make life eaisier (more affordable housing) for the country at large.
It is a warped to rail against our cold thoughts toward the causes of harmfuly high home cost and wishing them death. To do so implies that you would be happier with more of the same harmful bubble affects short term to worsen the enevitable correction.
Yes, I want investors crushed! The sooner the better! To say you want anything else is selfish and wishes indefinate pain on the sheeple. The short (less than 10 yr, more like 3-5 is my guess) negative economic problems that will accompany the clapse will be a cleansing fire. Massive credit collapse will lessen the overall debt burden on the country. Sooner or later this debt problem must be dealt with (either repay it or default) the longer it is put off the more painful the fix will be.
If you do not desire a collapse of housing prices you are wishing more debt on american housholds that will crush the economy longer and more effectively than my cleansing fire.
ALL HAIL THE CLEANSING FIRE!!!
BURN HOUSING, BURN!!!!
The victim attitude is ridiculous. Everything happens for a reason, and we are collectively to blame. Joe Sixpack is at fault for buying into the nonsense. If oridinary people had said, “no, we won’t pay half a million dollars for a shack, no matter how clever the financing,” this bubble would never had gotten off the ground. But, millions and millions and millions of buyers whose eyes were WAY bigger than their wallets, and who had no concept of quality or workmanship, jumped at the opportunity to live in flashy trash to impress themselves and each other, and to cash out on imaginary equity to load up on more rubbish. Nobody said anything.
If ordinary people had morals and stuck by them, immoral investors would have nobody to sell to. You can’t unload houses on an unwilling audience, and Americans have consistently elected officials who support “growth” (also called destruction). The innocent victims you worry about are the enablers who made this all possible.
Also, not being wealthy enough to buy a crappy, overpriced house or condo is hardly “pain.” When the prices fall, are you expecting to rush in and grab these engineered junkpiles at a bargain? Are you going to then unload them on unwitting victims at a profit?
My grandparents lived through the Great Depression, and I’ve heard all about it. Nothing was normalized within a few years.
You’re like the people who think hurricanes are exciting, and who rush to disaster movies. Disasters, however, are only fun as long as they’re make-believe. Ask the former residents of New Orleans how they’re doing after they’re “cleansing.” Sure, the water got rid of poverty, crime, and urban blight, but do you think they regard it as a good trade?
You missed the whole point of my original letter.
this is a real estae blog,we talk about the bubble,and since i sold my home in 04 i look forward to the real estate crash.in the usa we prosper from good financial decisions and can go bust with bad decisions.plese stop telling us how were are supposed to feel,even if a deprssion occurs people will be much better off than your grandparents because we have social programs in place to deal with poverty,and if one of those people are in the ppoorhouse because they bought a 500k house they cant afford than so be it.this is not a blog on morality it is a financial blog.
But if the crash is big enough (which a coastal real estate crash has the potential to be) and due to all the leverage, I’m not sure it will matter if one made wise or foolish financial decisions. It seems likely that hyperinflation and the global reaction that there isn’t a bedrock safe investment location could result in a global realization that there risk premiums have been too low.
Out of LA,
I guess that Rich and Brad and some of the other “comrades” on this site would consider you a hated speculator. After all, you got out at the top and sold to some poor Joe Six-pack. Now you are hiding out hoarding your underserved wealth waiting for a crash so that you can swoop in to take Joe’s house back for pennys on the dollar. Don’t you see the irony here?
You are quite right. This is capitalism and it’s our way of life. Just as you want to get ahead financially, so do the comrades on this site who pray for a crash. Oh, they are renting now and ready to pounce. The difference, however, in their minds is that some unseen, nameless Investor/Speculator will be the only one to suffer.
This makes it OK in their book to profit from a crash. You see, only stupid or greedy people will “get crushed”. There probably will be money to be made and I think people should just be honest about wanting to make that money. Not try to somehow claim they are different from the speculators because they will be some kind of Robin Hood. Just taking from the rich.
Your point about Social Programs is not well taken unless you care not how much all of our taxes will go up.
My point is that you are right. The bubble is not about morality. Wishing financial ruin on people is.
Look who’s talking, comrade. If you want to feel empathy for the great unwashed, be my guest, but don’t assume everyone else should shed a tear because a bunch of stupid, lazy sheeple get fleeced. That’s what capitalism is all about.
Only followers say “sheeple.” Ironic, huh?
It seems as though southwest Florida has been holding up a lot better so far. No horror stories anyway. Maybe not so many investors over there. I guess we will see this spring and summer what is real and what is not.
Don’t hold your breath. There was a CNN Money article that rated Naples, FL the most overvalued market in the US at 84%. The entire state of Florida is a bubble. Inventory in Tampa, the Sarasota area, all of SE FL and Orlando is skyrocketing. We are in for a painful correction. Ground Zero could be the Miami condo market. Better get a helmet.
Jim, I read several links on here in the past days that SW Fl. inventories are actually rising faster than SE Fl… Bradento/Sarasota had a huge spike in the last few weeks ..As stated by all you ,and even quoted by some of the RE cartel ” The market is changing ,and faster than we anticipated” we are without question on the downslope ,and speed is increasing….
Thanks, I’m checking in here daily to see if any new evidence pops up. The real estate agents of coure are spouting that there will not be a decline, just a leveling off. We are hoping to retire to Florida, but at the right price.
In my opinion, leveling off is by far the least likely scenario. Markets don’t double in value and just stay there. Big bull markets need fresh buyers to keep the prices moving up/stable. Realistically, how many serious buyers are left? Either the market will charge ahead (again) then correct or it will start its correction this year. Save your money and look to buy when you see a 30% discount ,if not more. Patience will be rewarded.
For SW Florida check out this real estate agent’s excellent web site:
http://www.naplesinsider.com
Bradenton/Sarasota are actually in West Wentral Florida, not Southwest Florida. They’re considered part of the Tampa Bay area. Prices in Tampa/St. Petersburg are not falling, and many realtors here claim there is no bubble, though prices have quadrupled in five years, and over-building is a nightmare.
Also, there have been few recent foreclosures in the most expensive parts of Tampa (33606, for example), so cash-strapped owners must be finding somebody to buy their properties. There are lots and lots of tax liens, but this is always true in these neighborhoods, since property taxes are outrageously high (2.5% of the sales price).
Downtown St. Petersburg is still way overpriced (doubled the past year), with million dollar condos going up. I haven’t heard of any cancelled building projects on either side of the bay, though I do know an older couple trying to get out of a highrise condo they put a huge deposit on three years ago. They said they’d sell for what they paid (pre-construction price), and have no interest in making money.
To change the subject, shouldn’t the EPA or somebody do soil tests in industrial areas where developers intend to build multiple highrises and townhouses? There is a huge development, New Port, going up in South Tampa near the Bay, but the area is dominated by filthy shipyard industries, and, doubtless, highly toxic with heavy metals, etc. I’ve watched this nasty land being cleared, and it looks to me like nothing is being done to address the contamination issue. Is no agency responsible for monitoring this kind of development?
Also… I always like this chart by Jim Stack of investech.com.
If you do a side by side comparison to the stock crash of 2000 it is earily similar. Regadless ,seems we have a preciptous fall if the chart turns out to be symmetrical…
http://www.investech.com
I’m tracking the Sarasota/Bradenton market and can confirm the inventory explosion in the area. It’s mind-boggling how many For Sale signs I see on a daily basis. One road I take had 4 houses in a row with signs. We’re now at a 7-fold increase in inventory for the $300-$400k range since July ‘05 and the rates of inventory increase have shot up since the beginning of the year. The media is not reporting anything about this and still touting a “robust market” but they are referencing the 30% yoy figures as of 4th quarter. This is old news but the general public has no clue. It will be interesting to see how this plays out.
Everyday, I talk to hundreds of people.
I tell them the same things I say on this blog.
I want to have a child with my wife.
I don’t want to get foreclosed on, go bankrupt, and get divorced because of owning a home.
I want to live in a home I’ve purchased, in the city I love (Huntington Beach, CA), for a long, long time.
If that means some people have to endure a mild financial concussion…so be it.
Maybe their hearts weren’t in the right place.
Mine is.
These ‘investor’ homes that sit vacant around my city serve no purpose, and rob kids of playmates.
If this nonsense had gone on a year longer, people would have begun burning them down.
The fact that this crash has commenced this quickly means something.
It means that the way things were weren’t right.
If you want to get rich investing…
…go back to where investing is called for.
If you want to be an ‘investor’…
…go back to THE STOCK MARKET…
…and let us raise our children.
Auction Heaven - apparently you can’t afford Huntington Beach. Get over it. Maybe someday you will be able to purchase there. Saying that you somehow DESERVE to live there more than others says something about your personality. I suppose Sainthood is in your future?
Hi va-investor. I sometimes sound like Auction Heaven in ‘07 when I complain about New Yorkers taking over Florida and driving prices through the roof.
I would like to live in Santa Fe, New Mexico, but at present cannot afford to, and in any event, my family is here, and I will always choose loved ones over a panoramic view. If Auction Heaven’s family is in Huntington Beach, then I’ll cut him even more slack, but I don’t think he realizes that sometimes what appears to be negative is actually a good thing, and that perhaps owning a Huntington Beach home at this point in time might not be to his advantage.
I believe there is the small picture we notice, and the big picture we cannot grasp, and the best thing to do is be grateful for every blessing in our lives, wish the best for every sentient being, and do the most good we can. Yes, mean people may be able to make a lot of money and live glamourous lives, but nice people are happier by far.
Incidentally, the two wealthiest people I know are also the two most generous and kind. The more good they’ve wished and helped bring about for others, the more they themselves have experienced. Thoughts really are things, with equivalent consequences.
Hi Anton,
I agree with you wholeheartedly. What goes around comes around. Some may consider me wealthy and hate me on that basis alone. I, myself, would never wish harm (whether financial, physical, or emotional) on anyone just because they may have reached some level of financial success. We all know that there is so much more to having success in life than mere money.
I just try to be a good person; to be kind and honest. I’ve tried to instill the importance of these things in my son. I confess that it makes me angry to see remarks like those of Auction Heaven who thinks his heart is better than others that he does not know anything about.
A lot of these seemingly hateful writers are probably very young and frustrated, and haven’t actually thought about what a worldwide depression might entail. I understand their annoyance at the real estate speculators, but I suspect most of the speculators aren’t terribly thoughtful, either, and don’t realize the incredible damage they’ve done by jumping onto the pyramid.
What I want to know is why aren’t more people rising up against the politicians who made this bubble possible? All cities USED to have zoning and building codes, setback requirements, etc. that prevented the building of junk, or any overbuilding of any kind. Yet, over the past decade or so, these regulations which worked for over a century have been completely ignored or reversed throughout the entire country. This cannot be coincidental.
I hope Auction Heaven gets a beautiful, perfect home in Huntington, and lives there with his family, happy ever after. But, I don’t think it’s very likely to happen while he’s praying for his enemies’ financial ruin. However, I could be completely wrong. I have a kind of belief system that says what I think about expands, and what I imagine for myself I manifest for myself, but the two have to coordinate or they cancel each other out. Instead of focusing on ruin, depression, and disaster, I suggest he focus on happiness, peace, and well-being, and let the Universe make it so in the nicest way possible. Just a suggestion.