“In The Dark, Holding The Bag” In Florida
The Sun News reports from South Carolina. “Condo sales plunged 30 percent last year, sparked by the departure of short-term investors and skyrocketing homeowners insurance rates. Condo sales fell from 9,222 to 6,453, according to the MLS for Horry and Georgetown counties - which captures about 80 percent of the area’s listings.”
“Tremendous price appreciation in 2004 and 2005 cut some buyers out of the market in 2006 and hurt rental investors who found they couldn’t cover their mortgage payments with rental income. As homes flooded the market and prices slowed down in early summer, house flippers started to back out.”
“Skyrocketing insurance premiums added to the slowdown with condominium associations seeing increases as high as seven times the amount they were paying. Many condo owners on fixed incomes were forced to sell. Inventory ballooned, growing 61 percent for homes over 2005 and 26 percent for condos.”
“Today, there are 8,654 condos on the market. (It) will take a year to clear out if the MLS got no more listings, said Tom Maeser, president of the Fortune Academy of Real Estate. ‘The rental investors are not buying anymore. We are waiting for more permanent second home investors,’ Maeser said.”
“One sign that the investor has left the market is in the drop in cash transactions. This year, cash transactions made up only 15 percent of overall transactions in the MLS. The percentage has never been that low, at least not since statistics started being recorded in 1994. Maeser said flippers often pay with cash as they buy and sell properties, and the drop shows they’re gone.”
“‘The rental income investor has been lost and the [flipper] has been lost. It’s the retirees that will keep our market going,’ economist Al Parish at Charleston Southern University said.”
“Real estate broker Dale Johnson Dale Johnson in Myrtle Beach added that the lack of buyers tells him that now is a good time to buy resort property or a second home. He says he’s seen sellers finally giving in to prices much lower than listed price. ‘I think you’ll continue to see prices drop on condos,’ Johnson said.”
The Miami Herald from Florida. “Realtor Richard Barkett’s reaction to 2006? ‘Thank God it’s over!’ said the CEO of the Realtor Association of Greater Fort Lauderdale, adding it was the year that brought the industry ‘back to reality.’”
“Others believe that the rate of owners cashing out of their homes will finally slow this year, dragging down consumer spending. It all means that South Florida’s economic juggernaut is finally slowing down. That’s already been the case for restaurant owner Catherine Malcolm.”
“‘People were more conservative with spending,’ said Malcolm about her business.”
“Construction jobs have taken the most direct hit. Palm Beach County home builder DiVosta Building plans to lay off half of its 552 workers next month.”
“Cement maker Titan America has seen a 20 percent drop in its concrete block business alone, which is almost solely for residential building. At full tilt last year its Pennsuco plant in Medley was running three shifts to keep up with demand. In the fourth quarter, it cut back to just one shift at the block plant.”
“‘Obviously, construction is in a pretty significant slowdown,’ said Florida division president Hardy Johnson.”
“It’s too soon to pronounce a controversial mega-development in Florida City dead, but the landowner is preparing to pull the plug with two key proposals. Atlantic Civil has filed zoning and permit applications in the last few weeks to build fewer than 200 homes on the property adjacent to the Everglades where it had proposed up to 6,000 homes.”
“‘There’s a lot of time and money invested . . . and we are going to continue to move it forward,’ John Shubin, an attorney for Atlantic Civil said.”
“But with significant political and regulatory hurdles and a tanking housing market, any going appears increasingly difficult for a project that has been a lightning rod in Miami-Dade’s debate over whether to open new land to development.”
“Shubin said Atlantic Civil was considering a bigger quarry with a limited number of homes if it obtained permits. The proposals raised one obvious question: Lennar Homes, which has an option to buy the land and was proposing to build the Commons project, has been renegotiating or dropping projects to deal with the weakening nationwide housing market.”
The Sun Herald from Florida. “Imagine hiring a dozen crews to build at least two dozen homes and then running out of money before you can pay them for their services, and you can imagine the mess that Construction Compliance Inc. faces.”
“The company, which has some 90 active building permits in Charlotte County, has apparently been placed in financial limbo after many of its subcontractors, who claim they haven’t been paid for some $1 million in work, filed liens against the homebuyers.”
“At least one bank involved in financing CCI’s home construction projects has ceased releasing cash advances on the work on at least one of the homes. Meanwhile, work appears to be slowing to a standstill on many of CCI’s unfinished homes located in Rotonda Sands.”
“‘I’m literally in the dark,’ said CCI subcontractor Joel Deriso. ‘I know that I’m being cheated out of a lot of money. I know that there are a lot of people like me. We are fighting battles separately, but we are losing the war,’ he said.”
“Homebuyers, however, may wind up being the ones to pay the price. Under Florida law, subcontractors can file liens against the properties where they performed work for a general contractor. The liens give the subcontractors the right to force the property into foreclosure after one year if they don’t receive payment.”
“Jodfer Land Service, which provided land clearing and fill dirt for some 64 houses, has filed liens totaling more than $300,000. Kimal Lumber supplied $182,000 worth of building materials at 29 homes.”
“Beckman Concrete and Masonry filed some two-dozen liens totaling some $220,000. Residential Drywall also filed a dozen liens totaling some $98,000. And Miller Brothers Contractin, filed a dozen liens totaling more than $90,000.”
“‘It’s a sad situation,’ said Gary Reger, manager of Seacoast Supply, which has liens against properties in CCI deals. ‘We’re kind of setting there holding the bag, too.’”
‘Sales of existing homes in the Charleston region slid by 31 percent compared to the year before, according to the latest numbers from the Charleston Trident Association of Realtors’ MLS. Last month’s sales totaled 1,022 compared to 1,482 a year earlier. ‘A 31 percent drop in sales is going to get a lot of people’s attention,’ said William Harrison, a real estate professor at the University of South Carolina.’
‘Meanwhile, the inventory of homes for sale has nearly doubled in two years. In December, there were 8,259 homes on the market compared with 5,203 a year before and 4,145 two years earlier. Real estate agents said the plummeting numbers seen in other markets have made buyers in Charleston nervous. Some areas of the country have seen home sales cut in half. ‘When something comes on the national news about a slump in California or New England, they relate it to being here as well,’ said Don Davidson, a broker in Mount Pleasant.’
From Florida:
‘Population inflows show that fewer people are moving into the state, adds Wachovia senior economist Mark Vitner. He thinks…there are fewer workers here now, driven away by the high cost of living. ”I think that some of the folks that were looking for work have relocated to other parts where housing is affordable,’ said Vitner. Overall, employers who thought they had a difficult time finding workers last year will find it worse now. Said Vitner: ‘A lot of folks that would have moved here aren’t. And other folks are moving away.’
–
Wasn’t it SC where the Housing Units increased by 10% in one year?
I know a Californicator who sold his home here and bought a bigger place in SC, last year. As selling homes gets tougher in CA it should affect the demand in many cheaper areas where Californicators were buying.
Jas
You don’t have to jump across the country to find evidence of this. A quick hop over the Sierra’s and you’ll find NNV is getting slammed by lack of Cali money.
Its so weird this assumption all CA people are wealthy locusts.
10 years ago CA was mocked and people were leaving to get jobs in vegas as waiters. Rodney King riots era wasn’t that long ago. I think they set 42,000 structure fires in 5 days, then shot at the firemen trying to put fires out. Its was an awsome time to buy in LA, people abandoned thier proptery all over.
“‘I’m literally in the dark,’… ‘I know that I’m being cheated out of a lot of money. I know that there are a lot of people like me. We are fighting battles separately, but we are losing the war,’ he said.”
His words confuse me, …is he building a bubble-house or buying a bubble-house?
He is a subcontractor.
Sorry Ben,
forgot the:
a subcontractor depending on the electric subcontractor, since he is, not figuratively, but literally in the dark.
“Real estate broker Dale Johnson Dale Johnson in Myrtle Beach added that the lack of buyers tells him that now is a good time to buy resort property or a second home. He says he’s seen sellers finally giving in to prices much lower than listed price. ‘I think you’ll continue to see prices drop on condos,’ Johnson said.”
There it is in one breath. Now is a good time to buy as prices will continue to drop. I just spilt my coffee.
Lets see Mr Johnson buy a few if it’s a good time to buy!
I’m sure he already did - six months ago!
I can’t stand it when these morons say that “it’s a great time to buy a second home”. I can’t afford an effing first house!
“I can’t afford an effing first house!”
Yes you can…Option ARM with a low teaser rate, no money down (heck, take some cash at closing), and no mortgage payments for 3 years. The same way everyone else has been able to “afford” buying a house (or two, or three).
Exactly Ben!
The realtors are DUMPING their own properties faster than anyone…they are the ones with the largest price reductions, at least here. And many are violating MLS “law” about disclosing that they are the owner…it’s easy to find on the county website, tho.
Then they have the gall to turn to clients and say..”buy”.
And they wonder, fret, and get angry about their image.
Actually, some realtors are buying now. Check out the most recent sonnypage story on Mish’s blog. It’s titled something like “losing a friend.”
If they want to buy, terrific….go for it, dummies. But it is disturbing and conflicting that they will discount and dump their own properties, while letting their client listings lanquish. All the while yapping about how now is the tme to buy. There is too much conflict of interest…some of the biggest speculators were realtors, and now they are rushing for the exits, and hoping their clients won’t notice.
It could be a reasonable statement. I think there are a few people out there who haven’t refi’d their way into consumerist glory and could afford to drop their price to, say, 1998 levels, just to escape the market and move if they had to. A very savvy negotiator might be able to convince someone that all gains since 1998 were false and they should just sell now and move on with their life. I know that’s what I’m going to try and do in 2009.
Are there any realtors or ex-realtors out there who can tell me if there is some kind of realtors “sound bite” handbook in exsistance? It seems there are realtors “clone sound bites” which they ALL use. Including David Liar.
The one we constantly hear, of course is, “Now is a good time to buy.” There are about half a dozen other sound bites they seem to use. I’m just interested to know if they have some kind of manual. I know one of the car sales lessons is, “Always respond to a negative with a positive.” For instance, “Jeeez. This is a big truck. Not sure I could park it.” To which the answer might be, “They made sure they didn’t sacrifice comfort for size.”
In the Sarasota Herald they announced the new realtor campaign called “Time2buy”. I can’t help but laugh at the desperation! I liked the comment I read somewhere on this blog that people can lose it drip by drip or all in one big slam. Real estate prices are still dripping here in Bradenton. We need the big slam then maybe people will buy into their Time2buy campaign.
I think the realtor profession has been ruined for many years to come. They are now going to have the credibility of a used car salesman or ambulance chasing lawyers.
You living in Sarasota now?
Bradenton. Renting in Lakewood Ranch. Hoping to build in Panther Ridge an acreage community if prices ever come back down to reality. Have one child with some special needs and researched the schools with the best services for her. Lakewood Ranch’s McNeal elementary, Nolan Middle and High School had more than any other school I could find. Miss Westchase though!
Yes, maybe I can help.
A Realtor takes classes. (80 hours) Pays money in order to take exam (+$100.00, again, years ago) Then takes an exam (passing is 70 in Florida, or was years ago) Then pays for license from Dept of Bussiness & Proffesional regulations (same outfit that regulates haircutters; execept that haircutters need 2000, yes that’s two thosand, hours of class time and an 8 hour practical exam)
And… woola!!! You have a realtor.
Notes:
1. you can take exam multiple times, most do.
2. There are courses taught for passing the exam (about $100)
3. Afterwards every year you take a correspondence course (if you are a broker) and that counts for continuing education.
IMHO If you never understood that a Realtor was simply a salesperson with the MLS in his pocket, then sadly, the dummy is you.
Like in the poker game if you can’t find who the mark is….
If this helps… please acknowledge with thank you.
p.s. I scored 97 first time, never listed or sold a property as an agent and made very good money buying/selling from 1998 to 2004 when I got out.
“‘It’s a sad situation,’ said Gary Reger, manager of Seacoast Supply, which has liens against properties in CCI deals. ‘We’re kind of setting there holding the bag, too.’”
let the fun begin! this is just the beginning, my friend. huge landslide will take out everything in it’s path.
Death_spiral.
It’s the: “Nightmare AFTER Christmas”
“Homebuyers, however, may wind up being the ones to pay the price. Under Florida law, subcontractors can file liens against the properties where they performed work for a general contractor. The liens give the subcontractors the right to force the property into foreclosure after one year if they don’t receive payment.”
“Jodfer Land Service, which provided land clearing and fill dirt for some 64 houses, has filed liens totaling more than $300,000. Kimal Lumber supplied $182,000 worth of building materials at 29 homes.”
“Beckman Concrete and Masonry filed some two-dozen liens totaling some $220,000. Residential Drywall also filed a dozen liens totaling some $98,000. And Miller Brothers Contractin, filed a dozen liens totaling more than $90,000.”
So what they’re saying is - a year from now there will be a new round of houses hitting the market. So much for a turnaround in 2007 or 2008.
I wonder how many FB are going to be in the path of that landslide?
everyone gets hit- unless you are a
retiree
fed gov worker
(same thing)
It’s the retirees that will keep our market going,’ economist Al Parish at Charleston Southern University said.”
We Hope
Most definitely: those with money will need larger homes, and those with less money will need condo’s.
But can retirees afford to buy SC condos? And if they read the papers, they know insurance has gone through the roof. It’s wishful thinking.
how far do you need to be from the coast to get insurnace break ?
I think you need to be as far back as, say, Tennessee. But wait a minute. Tennessee gets tornadoes. And occasional hurricanes too.
Greenville, SC seems to be one of the favorites of Florida retirees either half backing or fleeing their home state for better quality of life.
Submit the distance in kilometers, that might help.
plus height above sea level.
Near the mountains in Carolina, our homeowner coverage costs 0.25% of the insured value. We know someone near Hilton Head but on the mainland who expects to pay approx 1.8% for his coverage when the renewal notice comes.
wow - forget coastal anything
Submit the distance in kilometers, that might help.
Are from Engineering background? Most of us are stuck with miles and ozs.
If anytime we need to pump the economy, here is this oportunity. Make it a LAW to change over to SI systems, with Fed Govt giving subsidy for this (for using Kilometer,Kg, Ltr etc).
There were lot of work generated for the Y2K chnageover, this one will need much much more effort.
Yes, someone will have to pay ultimately, that will be by way of inflation/lowered value of dollar? Would it work and is it as simple?
rent2home,
Did you work in the Carter administration?
LOL
The metric system is the tool of the devil! My car gets forty rods to the hogshead and that’s the way I likes it.
Hey, you can’t even get USGS to switch to the “international mile.” *You’ll never get a change in the change the units in surveying.
*about 1/8″ off from the statute mile.
With mileage like that, AnonyRuss must be driving a hummer. Or maybe the ultimate offroad vehicle, the BARC LX.
Charlotte, NC doesn’t have high insurance. The exact same coverage was more than double in Bradenton, Fl over Charlotte.
How does homeowner’s insurance in Raleigh compare to Charlotte?
Sorry I don’t know about Raleigh. You could always contact a State Farm rep and ask for coverage for both cities. I would imagine it would be similar.
–
Every area seems to have a line as to who will come and buy homes there.
Jas
Even Bakersfield!
We often read of retirees being taken or scamed into poor investment decisions, as well as boomers buying into the flipper line. But these are aberrations - most older Americans are conservative tightwads who will not part with their money easily. If the REIC expects hoards of addled rich blue hairs to forked over good money for deflating assets, they are in deeper trouble than their wildest, darkest dreams.
Of course we also have the rich boomers who go sailing on their yachts or go on expensive fishing expeditions in the Alaskan wilderness while their wives take photographs of whales.
At least that’s what I saw on teevee.
On “We” or the “Discovery Times” channel?
One issue with that thought of retirees saving the day. How are they going to sell their house to retire?
These retirees aren’t retiring at $60k a year. They actually have been investing….now let’s hope its investments that survive any upcoming correction….then they can die in their home and live well to the end!
I was thinking this morning that the reason I continually keep finding only single digit numbers of foreclosures in my town is that it’s a town with many six figure families who bought homes at $150-$300k. I suspect there’s a rather large group that is probably tapped out financially (the posers), but I still believe there are many that’ll just be doing really well. One of my friends barely into their 40s have been in their house for 17 years. I think they had it built for about $160k. Seeing as he keeps getting promoted at ING every few years I’m thinking that mortgage thing isn’t such a big deal…if they even have one at all anymore.
My thought has always been is how many are invested ,and don’t even know it?
How many hedge fund, mutual funds..certainly CalPers etc are huge holders of MBS’s? When the great unwinding comes, how many that thought they were invested conservatively will be unwitting bag holders?
I think there is a misconception of retirees saving, and being tight with their money. That is our oldest depression era retirees. They are no longer buying houses to retire in. The new generation of retirees, spent their money, banked on their no longer existent pensions and social security to carry them thru their golden years. They aren’t in the same position as the previous generation. Even those that are fine upon retirement quickly see their money disappear. prescription costs are high. My parents have to cover approximately $4,000 in medication costs and that’s with insurance.
Unfortunately, the average american isn’t like the folks you describe. Most choose to live the high life and spend. consumer debt is out of control. Foreclosures are just now becoming a part of the picture. It doesn’t sound like you are describing the bubble areas. Luckily there still are towns that have good values, but unfortunately, that doesn’t seem to be the norm. I’ve lived all over the country and the closest I’ve ever seen to what you describe is the suburbs of St. Louis.
dimedropped, you are right. Your scenario is coming into play now. In NC and SC(non coastal areas) are experiencing a high cancellation on homes due to the buyer not selling their current home. Funny thing is, many are retirees in Florida wanting to move to an area that is more affordable.
I can validate that part of the problem for developing areas is that buyers can’t sell their current homes. I was with a government planner today in an area that was a “hot” area for development. He told me that many of the developers and home builders are having trouble selling homes in these new developments because the buyers can’t sell their current homes. This is in an area where the typical buyer is on their 3rd or 4th home. Their expectation is that only the large builders will survive because they’ve been through it before.
From the Left Coast…
Lansner blog: O.C. homes seen as 34.7% overvalued
http://tinyurl.com/lzgbg
The link I posted is to the wrong article; I’ll try to find the right one.
O.C. homes seen as 34.7% overvalued
Orange County homes were said to be 34.7% overvalued in the third quarter, according to a study by Global Insight/National City Corp. That’s down from 35.6% in the previous quarter. It’s also up from 30.8% in the year-ago period. Global Insight/National City Corp. considers any area above 34% to be extremely overvalued.
In their report they wrote of the national picture: “Sixty-three metro areas were judged to be (extremely) overvalued during the quarter, representing a decline from 66 metro areas during the second quarter. More important were declines in the share of all housing units, and real estate assets, judged to be overvalued. In terms of housing units, the percent deemed to be overvalued declined from 21 to 17 percent. In terms of single family asset value, the percent deemed to be overvalued declined from 39 to 33 percent. Clearly, we interpret the evidence as reflective of prices reverting to their historic norms.”
Costa Mesa’s new era rising
The City Council will consider plans tonight for eight condo towers for the arts district near South Coast Plaza.
http://tinyurl.com/yzr3hz
“It’s just such a rich environment.” Must make the city planners at Santa Ana just drool, they’re only 3/4 of a mile away.
Japanese family that owns all that “empty” farm land at the intersection of I-405 & I-15 really needs more money…LOL!!!!
Don’t you mean the intersection of the 405 and the 5? In Ca we don’t really say the “I-405″, though that is correct.
Josh
OT, but The 5 is sometimes ‘eye-five’…but The 405 is never ‘eye-four-oh-five’. Actually, Interstate 5 is the only one I’ve heard with the spoken “eye”(?)
“The” 5, “The” 405″, “The” 101, etc. etc. is a Southern California affectation.
Up in Nor Cal, it’s I-80, I-5, or just 101, 280 etc.
‘coursen back east here, we don’t prefix interstates with anything. “D’ya take 95 or root 1 or the parkway?”
Oh… I hope these go through.
Not that I’d live in one. I have friends who want to buy in the OC and having a more inventory is always good!
Actually, I’m a fan of high density housing (if its paired with open parkland and mass transit). Its time for LA and OC to step up to the bat and realize that they need more affordable housing.
Got popcorn?
Neil
affordable ? who’s buying
its a code word for tax you up the booty
My friend’s dad (Dave Ream) is the City planner for Santa Ana. The guy actually does think about the affordability index. I want talk to him more, but he’s a very busy guy right now.
NC is the new retiree destination- soft, but FL is toast
We called today to reserve a rental condo unit on Sarasota’s Siesta Key starting this Friday. You want an end unit? No problem, the lady said. You want Friday to Friday instead of Saturday to Saturday? Again, no problem. She said they don’t get busy until February. Right!
Can’t wait to go through the old neighborhood and see if there are a lot of For Sale signs. We even plan to check out some open houses on Sunday while we’re there. Will report findings and observations to this blog once we get back.
wow that’s a nice place-have fun
Bill, For sale signs are not yet up. The after holiday re-listing rush hasnt started yet.
LOL — even Floridians are retiring to the Carolinas.
We have a home in the mountains of NC. Went for the long weekend. The talk around the community is that most of the homes being built in the area are from Florida. You see just as many Florida license plates as NC. Last summer I thought it was Floridians escaping the hot summers(which is why we bought there), but for so many older folks to be there in the winter is strange.
Where in the mountains?
The area around Cashiers and Highlands has long been a summer escape destination for the wealthy from Palm Beach. Lotsa Florida tags there. Mountain properties in and around those towns are at least 4x more expensive than similar properties in other mountain towns not that far away.
We ruled out the mountains when we moved here. Too cold in the winter. Brrrr. I shiver just thinking about it.
We’re not really in the mountains, but compared to Florida we are. We are in the foothills near chimney rock in a community on Lake Lure. Used to be called Lake Lure Golf and Beach resort. They gave it a stupid name “Rumbling Bald”. Apparently, some hot shot developer from Steamboat is interested in making it some fancy resort area. I’m all about leaving it as it is. I hate what’s happened here(Florida) and don’t want to see our getaway home go down the tubes too!!!
“Homebuyers, however, may wind up being the ones to pay the price. Under Florida law, subcontractors can file liens against the properties where they performed work for a general contractor. The liens give the subcontractors the right to force the property into foreclosure after one year if they don’t receive payment.”
It’s like a pack of hungry hyenas fighting over the last antelope in the middle of a drought.
“It’s like a pack of hungry hyenas fighting over the last antelope in the middle of a drought.”
And their previous meal gave them diarrhea.
The title companies will catch it if they don’t deliver clean titles to the buyers. That’s part of what title insurance is for. Title companies have been cleaning up during the boom (every refi gets new title insurance), looks like their turn is coming up.
Most purchasers will likely walk away. The closing usually does not occur until the house is completed - especially if there are ad ons during construction period. Title agent will not be able to provide clear title unless all leins are satisfied, which will not happen unless buyer pays off. No clear title, no closing. Title company will not be held responsible. Subcontractors will end up w/ unfinished properties.
so if you bought pre-construction, can they only charge you on the lien for work done to your house or do they divide the dollar amount by the number of homes in the development?
At least one bank involved in financing CCI’s home construction projects has ceased releasing cash advances on the work on at least one of the homes.
Meanwhile, work appears to be slowing to a standstill on many of CCI’s unfinished homes located in Rotonda Sands.
For fans of the late great Cheap Seats, Rotonda was the home of ABC’s Superstars back in the early 70’s. They did a hilarious bit about how the Superstars were supposed to make Rotonda the next big locale, but it didn’t quite work out. The Superstars left and the town never recovered. They interviewed the mayor of Rotonda and his latest plan to revitalize the town was a new advertising campaign, “Rotonda is Rofunda!”.
Better luck getting the Superstars back together. I heard Joe Frazier got some swimming lessons.
Sounds a bit too close to Rwanda for me. Do you get a free machete and Kalashnikov with the purchase of each house?
CSUF indicator predicts reduced economic activity in region
Southern California Leading Economic Indicator declines for the third time in four quarters.
Southern California could experience reduced economic activity over the next three to six months, according to a model developed by a Cal State Fullerton economist.
Adrian Fleissig’s Southern California Leading Economic Indicator decreased by 0.09 percent in the third quarter of 2006 compared with the second quarter. It’s the third time in four quarters that the indicator has declined.
Civilian employment in the six-county Southern California region fell by 0.13 percent in the third quarter, Fleissig wrote. The indicator covers Orange, Los Angeles, San Bernardino, Riverside, Ventura and Imperial counties.
That’s right. Isn’t Rotunda an abandoned road pattern from the ’70s? I guess that round two has now failed too. Maybe in 2025 they can make another try. They should have just let the Indians keep living there as they were the only humans to successfully settle the area 300 years ago.
I have been to rotonda. Its been about 8 years but back than there was less than one house per street and off water building lots were about 1500 bucks. In 2005 they were as high as $100,000. Now you can get one for 15 thousand easily and it will probably go lower.The returns and losses eerily resmble the dotcom bombs.
From this morning’s Drudge Report…
http://www.nytimes.com/2007/01/16/realestate/16rentals.html?ei=5065&en=c551d19d50f5b8bd&ex=1169528400&partner=MYWAY&pagewanted=print
The area was once a hub of African-American civic and cultural life, but the neighborhood was ravaged by riots in 1968 after Martin Luther King Jr.’s assassination and fell into decades of neglect and disrepair.
The area has now become home to trendy cafes, a Whole Foods grocery and other stores. But signs of its hardscrabble past linger on in dilapidated apartment buildings and storefronts. The influx of transplants from nearby Dupont Circle and Adams Morgan has also raised the usual strains that accompany gentrification — rising rents, increased traffic and the displacement of local residents.
Mr. Franco, who lives in the neighborhood, said he was sensitive to those concerns. His company, Level 2 Development, contributed $1 million to help a group of tenants in low-income apartments buy their building as part of a deal with the local government for the approval of his condo project.
He had hoped to take up residence in a 3,200-square-foot corner unit with an expansive terrace, which will now be cut up into smaller rental apartments.
Boy, these developers are such wonderful fellas. Makes you want to see them reduced to dumpster-driving.
OT: Dallas News article on tightening subprime credit:
http://tinyurl.com/y6bbmy
“Rates on subprime mortgages have risen about a full percentage point since September, Mr. Carmona said, while regular mortgage rates have been relatively steady.”
The return of the risk premium?
1 point is a good start, but we’re still a good distance away from realistic risk premiums. Once more (and larger) sub-prime operators start dropping and MBS repurchase agreements start getting called in a big way, this is bound to go much, much higher.
More importantly, the return of the 10% downpayment.
“Maeser said flippers often pay with cash as they buy and sell properties, and the drop shows they’re gone.”
Not the flippers I know - all borrowed money, one at 15.59%!
The flippers who could afford to SELL have gone…..leaving FF. The second “F” stands for flippers…..guess what the first “F” stands for…..LOL
Once again, a must read on Fl. 1920′’s bust…compliments of poster Dc.too
http://xroads.virginia.edu/~hyper/Allen/ch11.html
One of the real estate firms in my area posts Greater West Palm Beach, FL sales, inventory, and pricing data a few days before the official Florida Association of Realtors stats come out. Its site has been updated with December figures. Looks like a 42% year-over-year decline in volume and a 8% decline in median prices:
http://www.ipre.com/trendg/index.htm
In other words, more of the same: Lots of inventory, not too much in the way of sales, and weak pricing. In fact, at the December sales rate (612 units) and the December inventory count (21,699), there are more than 35 months worth of homes on the market.
Great find, thank you.