The Beginning Of The “Interesting Period” In Florida
The Miami Herald reports from Florida. “In January, the developers of condo project 2 Midtown announced they would build 455 units instead of 459. That’s all it took for buyers Barry and Rachel Craemer to declare their contract void a week later and demand their $117,000 deposit back. The buyers for 47 units have sent such letters, and the builder is determined not to let any of them out.”
“The tension is rising as closing day approaches for the roughly 25,000 new condos expected this year and next. This may be the beginning of the ‘interesting period,’ said real-estate analyst Michael Cannon.”
“Attorney Gary Saul, who represents developers for 2 Midtown and other projects, said that six months ago he didn’t receive any letters from buyers wanting out. Now they’re coming from 10 percent of the buyers in buildings, sometimes as much as 20 percent.”
“‘The scary thing is, people who have flaked on me tell me they have like five other contracts in other buildings under construction,’ said developer Gregg Covin.”
“‘These are not people who have been wronged,’ Saul said. ‘These are flippers who wouldn’t be saying anything if the market was going well.’ To which Rachel Craemer replied: ‘Who are they to decide? The person who makes the determination should be the buyer, not the seller.’”
“Developers in turn are worried that if they give one buyer a break, they will lose the building. With their support, legislation is pending in Tallahassee that would make it tougher for buyers to get out of condo contracts.”
“‘If I am a developer and you come to me with your lawyer and I let you out, the first thing that lawyer does is tell everyone else in the building, ‘I can get you out, too,’ said Miami attorney John Sumberg, who represents builders.”
“At 2 Midtown, buyer Susan Linnell of Burlington, Vt., is among those seeking to get out. She said the developer did not respond for months to her queries about when she could see her two-bedroom unit or the date to close. ‘I couldn’t get any information out of them,’ said Linnell, a real-estate agent. ‘The whole thing started to have a really bad feeling.’”
The Naples News. “Oh, how the mighty have fallen. A few years ago, Collier County ranked as the second-fastest-growing county in the nation. But U.S. Census figures set for release today reveal that Collier is now the 97th fastest-growing county, based on growth from 2000 to 2006.”
“Fewer people coming to Collier has created a situation in which many homes aren’t selling, said Bob Murray, chairman of the economic development council of the East Naples Civic Association. With home prices dropping, families now are able to buy homes that couldn’t afford a home here before, Murray said.”
“‘I’ve watched people drop $50,000 off the price of homes they are selling,’ he said.”
“With so many homes up for sale, Collier could remain in a real estate slump longer than a lot of other communities. ‘I have 18 units up for sale,’ Murray said. ‘They’ve been up for sale for six to eight months. People aren’t buying because the cost is too high.’”
“According to a census report released today, about 18,000 more people left Broward than moved in from other states. ‘Housing costs are out of whack, and there isn’t an acceptable balance between cost of living and incomes here right now,’ said Bill Leonard, senior planner for Broward County.”
The Orlando Sentinel. “The torrid pace of growth in Central Florida has slowed. The net increase in residents in the region fell by more than 20,000 last summer, a Census Bureau report out today shows.”
“‘One complaint I have heard is that companies are having a difficult time recruiting people to work because they can’t find a place to live in Seminole County,’ said Bill McDermott, economic-development director. ‘When I hear that, that’s not good news. That’s really not good news.’”
The Sun Sentinel. “Business leaders and demographers worry that soaring living costs have placed Palm Beach County and South Florida beyond the grasp of average families.”
“‘We have major problems with people being able to afford homes in Palm Beach County, but it’s not because of the housing market. The crisis is in our taxes and insurance,’ William Cozart, CEO of the Realtors Association of Palm Beach County. ‘Buyers actually have wonderful choices, but they soon realize their mortgage payments are not as high as their property taxes and insurance. It’s devastating and worsens the economy. It makes it difficult for businesses to recruit people to live here.’”
The Palm Beach Post. “Here’s an early look at local existing home sales for February, which come out Friday from the Florida Association of Realtors. The inventory of unsold homes rose to a near-record high of 23,713, nearly on par with September’s peak of 23,886. Inventory stood at 17,842 in February 2006, making last month’s tally of unsold homes a 33 percent increase year-over- year.”
“February sales declined 44 percent, year over year, to 623 from 1,106 in February 2006. At the current sales pace, the inventory represents a 38-month supply of homes.”
“‘Given the very large supply glut evident in these figures, I suspect we’ll end up with a lot of disappointed sellers this spring,’ said analyst Mike Larson.”
The Herald Tribune. “Florida and federal regulatory agencies, including the FBI, are digging into the real estate-related mess that started with the collapse of St. Petersburg-based Construction Compliance Inc.”
“Tampa investor Zanuel Johnson said he found himself in the midst of six federal and state investigators asking questions about the particulars of his home investment. Steve Hatch, a Pennsylvania investor who bought a home from Construction Compliance and financed it through Coast Bank of Bradenton, said he has received a similar request by mail recently from the Florida Office of Financial Regulation in Tampa.”
“Johnson, a Tampa-based account executive with troubled national sub-prime lender New Century Mortgage Corp., signed a contract to buy a home in Cape Coral built by Enchanted Homes and financed through Coast with American Mortgage Link as the loan’s originator.”
“The loan was made by Coast subject to documents that Johnson says were falsified by someone to show that he made a $43,000 escrow deposit.”
“‘We’re talking to folks to find out what they were told and what information they were given,’ said C. Benton Eisenbach Jr., area financial manager for the Office of Financial Regulation in Tampa. ‘We can see the documents from the record, but that doesn’t tell me what these people believed.’”
The Gulf News Breeze. “As the destructive hurricane seasons of 2004 and 2005 become more of a memory, real estate professionals are predicting 2007 will be the year the deflated housing market rebounds to a state of normalcy.”
“‘With the spring, which is always the case, things are heating up,’ said broker Mark Lee. Lee should know a little something about market trends, as he has 25 years of experience in real estate.”
“‘It’s still kind of a standoff between sellers and buyers,’ Lee said. ‘The sellers aren’t willing to lower their prices and the buyers are not willing to pay the price the sellers have. When sellers do lower their prices, there’s definitely going to be a market out there.’”
“‘If I am a developer and you come to me with your lawyer and I let you out, the first thing that lawyer does is tell everyone else in the building, ‘I can get you out, too,’ said Miami attorney John Sumberg, who represents builders.”
Lawyers, Wall Street and Hollywood always win in the end.
when I collect a deposit , I don’t give it back
what would be the point?
‘I can get you out, too,’ said Miami attorney
Whats all this talk of getting out?? Is this prison or a luxury condo in sunny Miami.
WTF happened to they aren’t making anymore land? Did they suddenly find some? And where are greenspans immigrants in need of housing?
Real estate always goes up …. just before it goes right back down
To answer your question: YES! They found land! And a whole bunch of it. Thousands of square miles of undeveloped, waiting to be built land was found sitting behind a dumpster outside of a Krystal burger joint just off I-75.
Who put it there? Did Bernanke drop it from a helicopter?
Nope, they just mowed down another trailer park.
This is a genuine LOL. Great, I was eating lasabna at the time too.
Has there every been a time in this country when it was not a good time to be a lawyer?
Last year in New Zealand…
We parasailed, rapelled down cliffs, rode in jet boats, walked on glaciers with crampons on and lots more~
Never once signed a waiver for anything.
Lawyers are lonely there.
But I’ll bet they are happy in their off time.
If I remember aren’t they called barristers there?
If its like the UK there are two types of lawyers: a barrister is basically a trial lawyer, and a solicitor is the other kind. Clients are supposed to contact a solicitor first, who in turn will place them with a trial lawyer.
Has there every been a time in this country when it was not a good time to be a lawyer?
When the revolution comes…
http://www.reuters.com/article/bondsNews/idUSN2129987520070321
An active hurricane season could really kill the party in Florida. Look at what Andrew did to RE prices in FL. Who knows what the season will really bring, but a hit on Florida could really tip the balance.
The forecasters are always wrong. Hurricanes haven’t scared anybody away, yet. There are actually people MOVING to New Orleans, though there is nothing there other than the French Quarter and the Garden District, and few other standing areas, and the downtown with empty highrises, since there is no where for business people to live. And all of it is sinking.
http://tinyurl.com/9wmov
My family is from New Orleans, so I find this all very scary.
I’m not going to disagree that the economy there is in the toilet. It always has been (which is why I left before Katrina). But no place for business people to live? What about Metairie, Kenner, the West Bank, the Northshore?
There are a lot of affluent sections that are now fine (with the main exception being Lakeview). The poorer sections are a different story. New Orleans East, the Lower 9th Ward, etc. are still in shambles. But most “business people” wouldn’t have lived there before the storm anyway.
Yes, some people are still moving there. But I think most people who were going to move back have already done so. Granted, I’m basing this on anecdotal evidence: 1) A lot of companies with salaried positions are having trouble recruiting, and 2) home prices which spiked after Katrina have started dropping.
Forgive me if this is a second post, but my first hasn’t appeared after some time. In any case, what it said is that the forecasters are always wrong, and that hurricanes don’t discourage people from flocking to Florida or anywhere else. Witness all the construction on coastlines already flattened by hurricanes. People do not learn.
Also, I wanted to reiterate the gloomy future of New Orleans, as it collapses into a huge made-made sinkhole from years of oil drilling that involves pulling oil and sand and rock out from under the city. The re-routing of the Mississippi is another thrill awaiting the locals. And Trump wants to rebuild New Orleans as as a vertical city.
http://tinyurl.com/9wmov
Well, they’re not actually drilling/pumping oil from under New Orleans. From other parts of South Louisiana, sure, and mostly offshore these days, but none of the current major fields extend under the city. (Might be some very minor gas fields locally.) The old part of the city near the river has hardly subsided at all in recent years; in the rest of the areas sitting well below sea level, the vast subsidence is due to draining and drying the swamp it sits on.
Oh, and people are moving into New Orleans, but not that many. The city is well behind in their original hopes for recovery. Having lived there quite long enough to enjoy that city’s third world urban planning and management skills, I’ll restrain myself from further comment on that for now.
Oh yeah, and home prices seem to have peaked there as well. New subdivisions are still going up in the far ‘burbs, but just as many or more are being cancelled.
Click on the link I provided. The drilling, a lot of it offshore, is pulling sand and other stuff out from under New Orleans, and the sinking is much worse than reported. I went there a few months ago, and the place is beyond hope.
Speculators have descended on it like flies; houses cost even more than they did before the hurricane, and only the wealthy can afford to buy.
Notice the “locals,” many of them living elsewhere, re-elected the boob who did nothing to evacuate them. Many have been relocated to expensive condos in the Florida panhandle, and our government is paying the specuvestors’ outrageous rental prices. When the Feds tried to shut off the money tap, a federal judge jumped in and said they had to keep supporting these people in the style to which they’ve become newly accustomed. The condo flippers are making out like bandits, but I bet many of their properties are utterly trashed, and end up becoming permanent Section Eight housing.
I idd read the link. He’s got some good facts but also starts running fast and loose with it. Things like: What had been predicted to be 4 to 6 feet of floodwater was nearly 20 feet in places. Well, I dunno where he was talking about specifically, but as I drive (or bike or run) through northern New Orleans, I see the levees and the water and the houses, and yes, 20 feet sounds EXACTLY like what my local friends and I predicted years ago. 4-6 feet of water is what we’d have expected in worst-case rain *if* the levees held.
The term “pulling sand” is also a bit loose, geologically speaking. It’s a continual process, oil&gas drilling or not, that pulls that land down, and it’s been happening there since time immemorial. One foot per year is not the norm from what I’ve seen, not in longstanding developed areas. Where family of mine lived for generations, they lost 1 foot in 30 years, and that they expected because this was fill laid on swamp, which settles as the organics decompose. Not good, but not an immediate catastrophe for the here and now. In the long term, it’s more of a concern, especially in low, unprotected areas.
The Chandeleur Islands, in fact, were doomed from the start; they are vestiges of the old delta when the river went through Gentilly and eastward. Likewise, the current delta will meet the same fate one day.
Their only medium-term hope is to keep the river where it is (tougher as each century goes by) and use the silty sediment to top off the existing areas. Unfortunately, this is only good for farmland that can be flooded each spring, not residential or commercial property. But in our lifetimes, the city can probably be propped up fine enough by Dutch-style levees. Whether it’s worth it, that’s a dissertation.
And yes, the locals elected the boob again, but their choices were pretty pathetic by the time it got to the final election. And the mayor (perhaps unfortunately) isn’t a dictator; he has to follow roughly what the City Council (pack o’ boobs) lays out in many cases — or doesn’t, because they can’t agree on ANY action that might hurt a few for the aid of the many. That’s one of the the real reasons that city isn’t bouncing back at all.
“The drilling, a lot of it offshore, is pulling sand and other stuff out from under New Orleans”
I can’t verify whether there is any truth to this. But if it is, it’s probably negligible. I’ve never heard of it, and I was born and raised in New Orleans. The widely accepted reason for the city being below sea level is that it sits on a naturally sinking land mass that used to be replenished by mud from periodic flooding of the Mississippi River. When The Army Corps. of Engineers erected levees up and down the river to protect the city from the flooding, it had the unintended effect of cutting off soil replenishment.
I would question any claims implying the evils of offshore drilling by a website dedicated to (and this comes from their main page), “Featuring, promoting and fostering energy technologies that are on the cutting-edge, clean, super-efficient, non-depleting, reliable and affordable.”
Furthermore, once I read the following conspiracy theory on in the article, I had to seriously question the whole thing:
“In fact, as reliably reported in the Hunstville Times on Sunday September 11, 2005, breakage of the levees occurred two days before the arrival of Katrina.”
Yes, it is a a bit of goofy Web site, but the information is interesting, and New Orleans IS sinking, And correct, one cannot flood it to replenish the soil and mud. The engineers who created that ridiculous bay-of-sorts now claim they were under political orders, and are not morally responsible.
Did you check out the Huntsville Times article? Here’s a bigger conspiracy: a huge barge in one of the canals hit the wall and knocked it down. Locals, atop their houses, heard the bang, and turned and saw what had caused it. The barge. However, it had sounded like an explosion, so within no time at all, conspiracy theorists were claiming that U.S. Navy Seals had used underwater explosives to do the damage and kill of all the poor people of New Orleans. They are still claiming this. Meanwhile, the barge has been cut into pieces (or still being cut into pieces) to get rid of the evidence that refutes the conspiracy buffs. How come? Who owned it, why was it left tethered in a canal with an approaching hurricane, and why are those responsible not being held responsible?
The mayor of New Orleans is a dolt, and completely innept. So is the (good-riddance) departing governor of Louisiana.
Regarding Ray Nagin and Blanco, I completely agree. They are both idiots. The city still does not have a real emergency evacuation plan in place. Don’t get me wrong, I love New Orleans, but it has serious issues (and always will).
Funny you mention that conspiracy theory about the barge. There is another that the government deliberately blew the levee flooding the 9th Ward to save other (i.e., more affluent) sections of the city. And, yes, if it sounds familiar, this is exactly what people were saying after Hurricane Betsy in 1965.
They are still claiming this [conspiracy]. Meanwhile, the barge has been cut into pieces (or still being cut into pieces) to get rid of the evidence that refutes the conspiracy buffs. How come? Who owned it, why was it left tethered in a canal with an approaching hurricane
Getting rid of evidence?!? WTF!? That damned barge sat three in the Ninth Ward for MONTHS! I drive within sight of the damned thing, and people were out pawing on it. Some bit of “evidence”. Anybody had plenty of chance to go see it first hand and up close. Or tamper with it as well, I guess.
As for why a barge might be in a canal as a hurricane approached, where else might we have suggested they put it? Putting it there was probable considered the safest place; that’s where most barges stay in hurricanes. (You can’t just lift ‘em out on your boat trrailer, you know.)
As for the governor, I’m with you.
Well, a number of news programs have dealt with its dismantling, implying that that the barge was too controversial (or, I think, too disturbing, because it served as a reminder of the tragedy). In any event, if you’re going to leave a barge, make sure it can’t break loose. If it knocks down a wall, somebody is responsible.
The conspiracy stuff is infuriating, but it keeps entire Web sites going and enriches scam artists.
“Anybody had plenty of chance to go see it first hand and up close. Or tamper with it as well, I guess.”
Anybody except, it seems, for Louis Farrakhan and Spike Lee:
http://www.msnbc.msn.com/id/10370145/
Who needs to tamper when people can just make things up?
“Hurricanes haven’t scared anybody away, yet.”
Wrong! The hurricane threat is precisely the reason we left Sarasota in the Spring of 2005. We’re now about 250 miles from the Atlantic coast.
I was referring to people in numbers. No matter what happens, people keep moving in and building on the water. There are many times as many people living in Miami and on the coasts now as there were when Andrew hit. Did it scare away all the Ohioans or New Yorkers? I don’t think so. Unless people have lived through a hurricane, they don’t seem to have the faintest concept of how horrible one can be. Pictures on television don’t mean anything.
Um, WIlma and Katrina are two names difficult to forget. Mention either of them to someone thinking about Florida or Louisiana and they will instantly assume you don’t mean “Flintstone” or “and the Waves”.
But, do you think they keep people from moving here in droves? According to the realtors, it’s fear of hurricanes keeping sales down, not fear of eternal debt.
the drilling has nothign to do with new orleans sinking.
It has to do with the way the Mississippi is controlled. Silt is not allowed to deposit in the delta in a natural way any more. New Orleans is built on a pile of Mississippi run off, and there is less of it every day.
Insanity to rebuild a city like New Orleans that is below sea level and surrounded by water.
I grew up in Florida City, I was only 13 when Andrew hit but I do remember somethings. A lot of families whose home got destroyed got their insurance check, put their home for sale (most esentially just a vacant lot with debris) and moved up to Broward. I do think many had to sell for less than they wanted because so much was for sale. There was a huge turnover in population and most were so frustrated and just wanted to pack up and move out.
Southern Dade is espically vulernable to hurricanes. The coastal ridge that runs up and down South Florida, almost parallel to 95, protects most of the mainland from storm-surges, not from the winds though. However, the costal ridge esentially ends in South Miami. This leaves southern Dade naked and exposed to storm surges. Boats found their way inland all the way to Krome Ave. which is a few miles away from the shore.
I believe the Gulf Coast of Florida also does not have a large coastal ridge and is much more vulernable to storm-surges than most of the Atlantic coast.
I’d say 38 months of inventory has tipped the balance.
“Developers in turn are worried that if they give one buyer a break, they will lose the building….”
As W C Fields remarked:
Never give a sucker an even break
This tells it all from that idiot Condoflip site setup last year out of Miami - all they needed at the beginning were idiot buyers dumb enough to go to the Condo Flip site to pay a PREMIUM to sellers like the morons now trying to get out of their contracts in Florida
” We saw thousands of sellers, and very few buyers. ” as their site now claims but are now (what a surprise) are claiming a new dawn of sorts in miami real estate
All they need this time is new idiots and new morons -preferably with good credit and sizable down payments
Condoflip struck me as somewhat tongue-in-cheek from day one. I don’t think they were serious about creating any sort of “exchange”; it was more just a referral source for a bunch of brokers.
“Mark Lee said…..When sellers do lower their prices, there’s definitely going to be a market out there.
Glad they quoted that bit of brilliance from this 25-year veteran. The question is how much will the sellers have to lower prices?
Is this the complete list, Maven?
my old man is 25% off peak in FT MYERS w no bites
pool and boat lift …….
When he gets to 40%-50%, which is about where normal inflation would have taken the market before all this crap got started………i will drive down and take a look.
You’re always posting this. When are you going to shake him by the shoulders and tell him to GET WITH THE F-ING PROGRAM and lower his price drastically?
ending italics [/i]
trying again
this is not easy
Allow me
Just use “left arrow” “forward slash” ‘i’ “right arrow”
</i> is the way to end italics.
One way to end italics is never to learn how to use italics.
“One way to end italics is never to learn how to use italics.”
That’s the way I figured it when I first saw the screwups, long ago.
“‘The scary thing is, people who have flaked on me tell me they have like five other contracts in other buildings under construction,’ said developer Gregg Covin.”
Scary indeed. Should speculators be forced to close on contracts even if it means certain foreclosure/bankruptcy?
Should speculators be forced to close on contracts even if it means certain foreclosure/bankruptcy?
If you signed a contract…
The best advice I ever received:”A man needs to be careful where he puts his signature and his di*k.” A little imprudence with either can give you a lifetime of trouble.
If the builders let people go, they’re bankrupt. Since they supply jobs… its probably better to bankrupt a few more individuals in the short run to keep those building being finished. Don’t start any more… but abandoned 1/2 finished buildings are an anchor or the local economies for decades.
Definately a schadenfreude moment!
Got popcorn?
Neil
Neil, you have already done the damage by foreswearing popcorn at least twice in the past two days. Right now ConAgra (owner of Orville Redenbacher) is down three cents. I’m sure it’s your fault !
Right now ConAgra (owner of Orville Redenbacher) is down three cents. I’m sure it’s your fault !
Bwaa haa haa.
Like JP Morgan, I can manipulate the market to my whim.
Say, (you know how my Richie Rich mind works by now)
It’s the Centennial of good old J.P. bailing us out (Gold Panic of 07′)
I add to Neil’s comment. If you signed a contract Yes! If you can get out of that contract because of some breach or other legal reason, No!
That’s why laywers are helpful.
This developer was Shocked…Shocked to find that he had flippers in his building. It was no less scary a year ago, but he was covering his eyes back then.
“The crisis is in our taxes and insurance,’ William Cozart, CEO of the Realtors Association of Palm Beach County. ‘Buyers actually have wonderful choices, but they soon realize their mortgage payments are not as high as their property taxes and insurance.”
This is typical of the Brokers and Realtors ™. The price isn’t the problem, as long as you have a toxic loan that makes the payments low. IF you pay a fully amortized mortgage on a 30 year fixed, your payments will be HIGHER than taxes and insurance. It’s all about the PRICE of the house, which would drop the taxes and insurance if it’s LOWER>
They simply don’t want to admit that pushing the prices into the stratosphere is a problem, because that would be saying they sold their last buyers an OVERPRICED POS.
Remember, these are the same people who couldn’t figure out the butterfly ballot. I wouldn’t ascribe too much brainpower to them.
I agree that we have an affordablility issue. However, I have a very affordable pre-bubble fixed rate mortgage which just went up $400 a month. This was due to an increase an insurance costs. This could easily send a lot of people over the edge even if they weren’t in over their heads.
That is an unfortunate side-effect of housing inflation. I have the same problem, but here we are talking about NEW SALES. The price is too high.
Your increased insurance cost are also related to inflated appraisals.
“Your increased insurance cost are also related to inflated appraisals.”
Good point. When comps drop, so should the premiums. Not to mention the decrease in construction materials costs.
Ouch! I’m paying $800 a year for a 3000 sq ft house in Colorado.
“‘We have major problems with people being able to afford homes in Palm Beach County, but it’s not because of the housing market. The crisis is in our taxes and insurance,’ William Cozart, CEO of the Realtors Association of Palm Beach County. ‘Buyers actually have wonderful choices, but they soon realize their mortgage payments are not as high as their property taxes and insurance. It’s devastating and worsens the economy. It makes it difficult for businesses to recruit people to live here.’”
What a douchebag. It is the housing prices and the higher taxes and insurance that goes with these higher prices. The other problem is the historically low paying jobs in Florida. Figures a shill from REIC would be interviewed.
“[R]eal estate professionals are predicting 2007 will be the year the deflated housing market rebounds to a state of normalcy.”
With all the data currently available, can anyone still deny Florida is going to experience a cataclysmic housing crash?
Miami is going into a black hole. We’re going to see unfinished 40-story concrete skeletons down there.
We see 40 story concrete skeletons now in Miami. You are correct, Miami is going to get destroyed. I have read where 70% (or more) of the buyers were speculators and they have anywhere from 20-50 years worth of condos in the pipeline. It is unreal.
I live in WPB, FL and there are 4 more towers under construction withing walking distance of each other. The previous 3 that were built sit virtually empty. These “luxuary condos” are renting for about $1,200 per month and have listing prices of $300K-$500K I suspect.
“they have anywhere from 20-50 years worth of condos in the pipeline”
Not true. Why? Because we are going to send you all our illegals and make Spanish the official language down there. Soon thereafter we’ll start bringing some of our overseas operations back for all the minimum wage jobs that will be waiting to be fullfilled do there.
that sounds like miami today
Heck, it sounds like most American cities’ future to me. Grow houses and squatter homes for everyone!
illegals dont make anyone buy a over price home in south florida. it is the wantabee trumps and hiltons. no one is saving housing market here.
it is over!
20 - 50 years at current prices … Once the prices roll back to where they were in 1998 or so, there will be many buyers. I am not sure I would want to buy into highrise under these circumstances. Even at 20 cents on the dollar, many are expensive, and get used to taking the stairs, since the elevators probably won’t be maintained …
Also, are quality standards being maintained right now, or are shortcuts being taken at every step? Are these buildings even going to be safe to live in?
Big problems for sure.
and get used to taking the stairs, since the elevators probably won’t be maintained
And when they are maintained, they’ll be used as urinals.
Took the family for a drive across the MacAurthur causeway out to South Beach last weekend. Even though I read about this stuff all the time, it was mind-boggling to see all the cranes putting up condos in the Biscane area of downtown Miami. My wife counted about 17 just looking out the passenger side window of the car. The underconstruction condo tower that amazed me most was the one being built what seemed to be about 10 feet from the freeway. Incredible and ridiculous. It really looked like a third world country undergoing a construction boom (reminded me of Panama).
I thought the University of Florida said a week or 2 ago that single-family homes had bottomed out and prices were sure to start going up again.
Also, now that Tallahasse has solved the insurance problem, I’m sure they’ll do just as good of a job solving the property tax problem.. HAHA
“now that Tallahasse has solved the insurance problem”
Yeah, what a laugh that was. Some reporter on TV asked Crist if he was happy how it turned out and he got a bit testy and arrogant. Yessir, Floridians, the lawmakers put the Florida taxpayer on the hook for reinsurance for the insurance companies and in return, we got completely bent over by the insurance companies. This had to be one of the BIGGEST screwings Floridians ever got. The so-called rate reductions are a complete joke, considering the insurance companies have a window of time to raise rates BEFORE they reduce them. We were tricked into insuring the insurers.
So who’s insuring the insurer of the insurers? You, my friend, the taxpayer.
That makes me wonder, if Florida has another season like 2004 or 2005, the state will have possibly 10’s of billions it owes the insurance companies. Where’s FL going to get that money? Could the state government become insolvent?
no, if the reserves run out, the law requires that it be paid by a special assesment from all Florida property owners.
And to think that there are people in Colorado who want to repeal TABOR (Taxpayer Bill of Rights).
TABOR basically keeps state spending in check with inflation and polulation growth.
what about the hurricane problem and the immigration problem
I think international immigration is the only thing keeping Broward, Dade and possibly Palm Beach afloat. Without it, we surely would be lossing masses of people. Domestic migration is negative in Dade and now Broward. The only reason these counties still grow is because international immigration and, to less of an extend, births.
Even though many of these newcomers from other counties are wealthy professionals, I think the papers are overestimating this. The majority are just getting started in this country and have not amased much wealth, yet.
So, international migration will create demand but I doubt the majority of the newcomers will be able to keep the prices up so high. Especially, with the subprime crunch.
This market is going to “bottom out” continuously for the next decade.
We should all write letters to any and all newspapers, suggesting that they never quote “real estate professionals” when writing about real estate prognostications. Shiller and Roubini, that’s who we want to hear from.
trying to end italics
Just Google “end italics”
Ben Jones,
Would it be very difficult at the end of every post to automatically end italics, bold, strike, strong, etc.?
Not a big deal. Certainly 2nd priority to putting in a ‘respecte user’ list.
Neil
I tried “less than-slash I-greater than” but it didn’t work
RE workers are on 1099’s hence
Jobless Claims Fall for 3rd Straight Wk.
as they migrate to low paying retail etc
and the construction is mostly illegals , so they don’t bring the emp numbers down either
Yep.
Unemployment is missing this Tsunami. Cest la vie. At least we know. At least we’ve talked some people into selling and more into not-buying.
Not to mention, the Warren act puts a nice 60+ day delay on unemployment reports (e.g., Ameriquest gave all employees 10 weeks pay. They’re still “employed,” but locked out of the office.) So unemployment, thanks to the Warren act, now has a new two month time lag in reporting lost jobs.
Got popcorn?
Neil
FYI, its WARN Act (Worker Adjustment and Retraining Notification Act). Nothing to do with Earl Warren or any other Warren.
But what about all those great opportunities in MLM? Aren’t they just crying out for down-on-their-luck Realtors?
” Should speculators be forced to close on contracts even if it means certain foreclosure/bankruptcy? ”
Legally, it simply a matter of whether the original contract is valid or not and whether the seller/developer has breached in a material way sufficient to void the contract. This is not about any court mandated specific peformance of a buyer
The ultimate down the road financial condition of the buyer, whether good or bad in a valid sales contract, generally cannot be used to waive the the underlying terms of the contract
Otherwise, real estate contracts would have no validity at all - as buyers would then be able to intentionally rearrange their financial matters in such a way to escape contracts they are otherwise lawfully bound to adhere to
This is elementary contract law - true in all jurisdictions and unless these contracts (zero chance of that) have some kind of special buyer escape clauses - the buyers will likely be bound
In practical terms of course the buyer can simply refuse to perform, however they will ultimately lose any lawsuit and unless they are judgement proof (e.g no assets) - this can create some serious problems for these buyers
Judgement proof buyer/breachers will end up walking away in many cases
Is this true of SFH purchase contract? I thought you could always slide out on the lawyer review or home inspection review.
(e.g no assets)
the lawyers will assure that is the case.
Bwaaa haa haa!
Damn flippers. Don’t get me wrong. The kids who buy houses, live in them while making them livable (or in a trailer), and then sell are a boon to the economy by fixing up the wrecks in our neighborhoods.
But idiot flippers who think a new color of floor or countertop is adding value… bwaa haa haa.
Got popcorn?
Neil
I wonder why these condo units are appraising for the orignial contract price that has clearly gone down in Florida now . The question becomes can the builder enforce a contract in which a lender/borrower would be fradulent if they performed on that contract . Were any of these contracts subject to obtaining financing ?(Can’t imagine a buyer writing a contract without it being subject to financing and the appraisal hitting .)
In other words, is the contract enforceable if the “lender” could not perform on the contract given the current market conditions ?” I mean did all these flippers buy these condos for cash ? Did the builder has a clause that the buyer would lose the ‘Good faith Deposit “, regardless of market conditions ,or valid appraisal or ability to get a loan when construction was completed . How about the fact that the sub-prime lenders that would of funded these flippers are gone and the ability for the flipper to perform on the contract is most likely gone .
I just wonder how the Courts would rule on cases were the market conditions have change so much that the flipper/buyer would not even qualify or be able to perform on the contract now . If a borrower signed a contract that they have no out’s ,than it was a stupid contract to sign and very one-sided in favor of the builder and maybe that is the case .
Only if you put it in. In my limited RE sales days, I always put in “contingent on favorable home inspection, at sole discretion of purchaser, to be completed within five days” — and, I verbally assured purchasers that we weren’t looking for nickel & dime stuff, but just for any big problems.
Never had anyone actually use it to back out - but the safety net helped. Of course, this was in the mid-80’s - and not in the days of multiple contracts and escalator clauses.
Let the buyers and developers go at it. They both deserve it, the lawyers will take their money and no one wins.
Personally, I would never put down a large pre-construction deposit. I like to know what I am getting, I like to be able to see it. Otherwise I feel I’m buying a pig in a poke. The reverse side of this story is that some developers are not building, yet they are keeping the deposits. And good luck to the buyers who are trying to get their money back. A contract by definition is a “meeting of the minds”. One sided “contracts” are not contracts, IMHO.
Similarly, I never make a “construction” loan except for an addition to an existing structure whose value already exceeds the price of the construction. Hence, the collateral I require is the existing structure and the underlying land. I don’t give a rat’s @$$ whether the construction is ever performed or not.
the lawyers never lose. they gets paid.
screw up your credit so your loan will be rejected
note - that is walking away w/o any refund of that down payment
“A few years ago, Collier County ranked as the second-fastest-growing county in the nation. But U.S. Census figures set for release today reveal that Collier is now the 97th fastest-growing county, based on growth from 2000 to 2006.”
So much for population growth in Florida holding up house prices.
Phillips is one of more than 27,000 people who moved to Lee County in 2005-06.
Lee County added more people to its population than any other Florida county in that year.
According to figures released by the U.S. Census Bureau today, the county grew by 27,148 people, or 5 percent.
Miami-Dade, the most populous Florida county with 2.4 million people, grew by about 24,000.
“Lee is pretty large to start with, so to have that growth is pretty rapid,” said Scott Cody, a demographer at the University of Florida’s Bureau of Economic and Business Research.
Since the 2000 Census, Lee County has grown by 30 percent — more than 130,000 people.
Unfortunately, people are still streaming into the county to the north of Collier. Or at least they were between July 05 and July 06.
http://www.news-press.com/apps/pbcs.dll/article?AID=/20070322/NEWS0106/70321103/1075
“But U.S. Census figures set for release today reveal that Collier is now the 97th fastest-growing county…”
Just to put that in perspective, there are just over 3,000 counties in the U.S.
“‘These are not people who have been wronged,’ Saul said. ‘These are flippers who wouldn’t be saying anything if the market was going well.’ To which Rachel Craemer replied: ‘Who are they to decide? The person who makes the determination should be the buyer, not the seller.’”
Rachel baby, you did make the determination, when you signed that little piece of paper. Remember that? The day you thought you’d won the lottery? Idiot.
Anyone notice that Susan Linnell of Burlington, Vt was yet ANOTHER RE agent with contracts all over the place? Vermont and she has a contract on a condo in Miami? I’m guessing she wasn’t planning on a move South.
An old developer contract term. “Never let go of a man’s jewels to try to get a better hold on him.”
From the Gulf Breeze News article:
“Although existing home sales will be marginally reduced due to subprime lending restrictions, they should be gradually rising this year and next,” said NAR’s chief economist, David Lereah.”
Although home sales will be fewer-they will actually be more–uh, yeah, that makes sense. I guess. The UF professor must have given Lereah a bit of the “Gainesville Green”.
“‘The scary thing is, people who have flaked on me tell me they have like five other contracts in other buildings under construction,’ said developer Gregg Covin.”
Hey people don’t rip off Gregg, he deserves every penny he can get.
OT,but only slightly.
http://www.thestreet.com/_dm/funds/followmoney/10345737.html
Countrywide exec’s shedding stock like a winter coat. $341M since last August. Think they know sumpin’?
Pretty interesting. Like GetStucco, I am not much of a gambler, but with only 1.7% dividends to pay annually, one could afford to hold a short position for quite a while, no?
From the Gulf Breeze News Article:
“Optimism about Florida real estate seems to be particularly strong among foreign investors. Many respondents to a study conducted by UF commented that foreign investors and lenders are aggressively trying to invest more capital in the state’s rental markets.”
“They apparently have no fears about the future of these markets, despite what we perceive as our problems with hurricanes, taxes and other concerns,” Archer said. ”
Any foreigners out there care to chime in on whether you are a bit nervous about Florida hurricanes, property taxes, insurance? I can understand that foreigners may not be up to date on the tax and insurance problem however somehow I am pretty sure they are aware of the hurricane problem.
Wouldn’t expect foreigners to be big players in Gulf Breeze since the closest International Airport is in Atlanta and most Europeans are only aware of Orlando and Miami. Maybe “foreigners” is local code for Spanish speakers. Or people from up North.
I’d rather furriners get screwed than Americans, generally.
Americans are essentially horse traders. We have a long history of sticking it to foreign investors.
We did well doing that during the dot com bust.
But eventually, forign investors will get more savy. Cest la vie.
But they’ll be able to share in our fun via their MBS purchases.
As GetStucco like to remind me, this is global.
Got popcorn?
Neil
it doesn’t make any sense to me that foreigners are going to save the Miami market. I don’t think foreigners are going to any more inclined than the natives to buy an “asset” that’s declining in value. they’ll abandon the purchase market too, although if they do contribute to population growth that should help the fundamentals.
Neil, I noticed your new phrase is “Cest la vie”. You should add that to your signature right above, “Got popcorn?”
Rights, foreigners generally don’t know about taxes, don’t have homestead, have to put 20% down…they are gone!
BB says warm up the copter
Bernanke: Credit Key to Healthy Economy
http://biz.yahoo.com/ap/070322/bernanke.html?.v=1
I read that this morning and smirked. He’ll do a helicopter drop… but when that tanks the dollar?
You can’t push a rope and BB knows it. All he can do is open the flood gates to the FDIC so that they can force a healthy consolidation of our banking sector.
This is why I do not predict a depression. Our banking system will keep going.
However, its going to be an interesting recession. I wish that I had bookmarked the youtube where thornburg (sounded like him?) quoting that he expected normal down payments to go back up to 20% or even 25%.
Bwaa haa haa! That’s the market I want. I can provide a down payment in that range. But I’m not paying today’s prices. Bwaa haa haa.
Got popcorn?
Neil
Funny to see developers, lenders and flippers, who all planned to get rich at the expense of resident buyers, now fighting to decide who among them is screwed how much now that the expected marks are no longer available.
So true WT Economist .
the hammer has completely dropped. all three newspapers in south florida has finally exposed the reality of the housing market. i predict 35% across the board easily by the end of 2008 and 50% or more in the worst neighborhoods. the issue of salaries vs home prices is like this. 90% of households make less than 100,000. the average housing price is at 375,000. i am not good at math, but add it up!
If you want to talk about math funnies, think about this one: last week I looked at a rental property in Tampa that also was for sale. The asking price was more than 200 times the monthly rent.
The housing bubble is a tax on people who are bad at math.
florida is just plain stupid. i have people willing to hold on until the new boom. 10 to 20 years from now. either they will find out that their property is worthless or go broke paying insurance and taxes.
I know someone hear that thinks 200 x rent is a steal
N VA 22151
snake charmer, I believe I posted last fall about a house in “The Soundings” at Hobe Sound that was offered for sale at $950,000 or for rent at $2,500. Sale price 380 times the monthly rent. What idiot would buy? …
Yes, but Hobe Sound is pretty!
I’m here right now in the greater Orlando area, Took a drive out to Ocala then back up through Deland. You can’t drive 5 miles without seeing a partially built development, or huge areas of flattened landscape with that cute entrance brick wall with the sign ‘coming soon’. Houses here are sitting even after reductions,and they are building like there’s no tomorrow. In light of recent guidance on the ending of sub-prime,no down, do doc loans there is going to be one hellofacrash hitting the area .Avg. wages are low at best. Retirees? They already bought. Taxes, insurance as stated in the article will keep most newly retired away. Where is the next buyer? I already see the senoirs in my neighborhood hunkering down in their 1000sq.ft. pre 70’s box. They see prices at Walmart going up,food has doubled..They aren’t fools..Their survival depends on it. Spring has sprung,and see no respit for the foolish ,and weak
“In January, the developers of condo project 2 Midtown announced they would build 455 units instead of 459.”
They backing out because the developer is building 4 less units???
They are probably looking for any niggling little excuse that they can find. This is all they could come up with, unfortunately for them. The judge in any court case might have the same reaction as you did, only he’ll try, as part of his job, to keep from laughing straight in their faces.
It sounds like they are using this fact as an argument to get out of the contract — but the real reason is because the units are worthless.
Want advice on how to help a buyer purchase your place with a cash-back deal (telling the bank that the purchase price is higher so you can get cash in your pocket)?
http://tinyurl.com/3ajoa2 (SDCIA creative investment forum)
Family and work issues have converged to a point that force me in the next 3 months to move to the Boca Raton area and even further north, as I’m somewhat flexible on location in that area. Looking to rent a SFH in an affluent area of say in the $2800 to $3000 range. Anyone have any tips as to communities to look into or avoid? any other insights,( the ups and downs) on such a move would be welcome…schooling and employment not an issue…also, any local blogs on the real housing story of the area? Thanks much.
The only comment I have is for god’s sake do not buy! Rent for at least 2 years as folks there still haven’t smelled the napalm yet. Between tax, insurance, credit crunch and demographics house prices have a long way to fall. By the way I lived there over 30 years so I have seen it all.
AMEN BP….I was there 26 years….bailed in 2006….
Like, I’ve always said about WPB….”"ANYTHING YOU WANT, LEGAL OR ILLEGAL, IS AVAILABLE “”IF”" YOU GOT THE MONEY”"
I’m in WPB and I don’t think you should have NO problem at all renting something nice in that range.. Although my definition of an affluent area maybe a lot different than yours. I’m in the El Cid area of WPB, just south of downtown and there are many, many homes for rent.
thanks for the replies..will definitely NOT buy until the situation in South Florida plays out and I see rivers of “blood” in the streets..as for affluent, I understand thats a loaded term , just looking for what passes as some pseudo-upscale area with low crime, great shopping and visually appealing topography/landscape, no commercial, no high-rises but instead sprawling quiet residential and not cookie-cutter (if possibel).
El Cid area has a LOT of Mexicans/Cubans 3-6 blocks west… and Just North of Belvedere is a very dangerous area …have a friend off Georgia ….I’d stay out of the south side, and head towards Palm Bch Gardens
Just a couple of minutes ago (above) I posted about a house for rent in “The Soundings” at Hobe Sound. It’s a nice place where every house has deep-water frontage (although they’re CANALS, obviously). Attractive houses priced around $1M, but rents under $3000.
az lender reply:….I’m familiar with Hobe Sound area, as I also lived in Palm City, and traveled thru there quite often…..WHERE EXACTLY IS “”THE SOUNDINGS”" in Hobe Sound????
Where do you plan on working? I live north of WPB but made the mistake of taking a job in Boca Raton. There are only two ways to drive - via the turnpike or via I-95. The turnpike isn’t so bad but at rush hour will frequently bog down to stop-and-go. I-95 is pretty much stop-and-go any time past 4:00 PM.
I have tried taking Tri-Rail but oftentimes it is late, up to 60 minutes. Plus it is an olfactory challenge at times.
BTW when hurricanes strike, you can forget about being able to drive anywhere for the next month - traffic lights are down, and everyone drives Mad Max-style.
any other insights,( the ups and downs) on such a move would be welcome…schooling and employment not an issue…also, any local blogs on the real housing story of the area? Thanks much.
I see someone suggest you wait and I think I would agree. I was down there about 2 months ago and my old was for sale $810k for a 4/2.5 in east Boca. I sold the thing back in 1998 for 235k. Even if the guy comes down 50%, which he isn’t, I still wouldn’t buy that place, it’s too close to I-95
Wait, be patient. Pounce
These days, you should be able to rent for $3K an unfurnished new or newish condo that would have a wishing price of $700-900K, though not downtown or direct ocean. But you might find one on the river.
I am going to Boca on Sunday to do the exact same thing. I have a realtor friend who will be researching the 2500-4000mo SFH for me. If you e-mail me when I return on Thurs (to NJ) I can give you info rrossen@nj.rr.com
‘We have major problems with people being able to afford homes in Palm Beach County, but it’s not because of the housing market. The crisis is in our taxes and insurance,’ William Cozart, CEO of the Realtors Association of Palm Beach County.
This is true, because everyone knows taxes and insurance have nothing to do with the housing market.
???
Countrywide news:
http://biz.yahoo.com/rb/070322/usa_subprime_lenders_countrywide.html?.v=1
“Johnson, a Tampa-based account executive with troubled national sub-prime lender New Century Mortgage Corp., signed a contract to buy a home in Cape Coral built by Enchanted Homes and financed through Coast with American Mortgage Link as the loan’s originator.
The loan was made by Coast subject to documents that Johnson says were falsified by someone to show that he made a $43,000 escrow deposit.
“We’re talking to folks to find out what they were told and what information they were given,” he said. “We can see the documents from the record, but that doesn’t tell me what these people believed.”"
——————————————————————————-
Johnson (the investor) works for New Century? Oh, the irony.
Does anyone really believe that he didn’t know and understand that they falsified a $43,000 escrow deposit??? Some of these investors, yes, perhaps they didn’t quite understand what they were getting into. But, you can’t tell me that someone who worked in the same industry didn’t know exactly what they were doing. He probably does the same thing for his own clients!
Obviously these folks are trying to back out because they now expect their future units to be worth less than they expected.
I wonder how many of them would have agreed to let the developer back out of that very same contract if the reverse were true and we were back in 2005 when prices were escalating? Somehow I suspect these folks would have fought tooth-and-nail to force the developers to uphold those very same contracts in the face of price increases that exceeded the contracted sales prices.
In any event, I don’t know sh*t about these sorts of pre-construction contracts. The only real-estate contracts I’ve ever signed where the typical earnest money agreements on houses that I was buying and they had all the standard contingencies about being subject to inspection and contingent on financing. And I never made more than a $1,000 deposit either.
I wonder how many of them would have agreed to let the developer back out of that very same contract if the reverse were true and we were back in 2005 when prices were escalating?
We discussed earlier that anything Donald Trump builds has such a clause - he can apparently “call away” your contract if prices go up so he can offer it to someone else at any time, or force you to pay more.
orlando sentinel today
Armed assailants wearing towels on their heads shot the president of an Altamonte Springs mortgage company multiple times at his home this morning, said Seminole County deputies.
I have often posted about how my borrowers send me Christmas cards in gratitude. I’d better monitor the quality of their continuing gratitude so that I’ll know when it’s time to learn the use of firearms. Of course, none of my borrowers is subject to a “reset”.
Here’s a link to the Orlando Sentinel article:
“Men Wearing Towels Over Head Shoot Man in Seminole Home”
http://www.orlandosentinel.com/news/local/seminole/orl-bk-semshooting032207,0,4455538.story?coll=orl-home-headlines
Holy S#!@! I thought that was just a joke
“We have major problems with people being able to afford homes in Palm Beach County”
“People aren’t buying because the cost is too high.’”
Oh my goodness! this is some of the first times I’ve read that People aren’t buying because the cost is too high!!! wow! It only took 3 years for someone to say it. (usually we get the tripe of buyers being “stingy” or “unrealistic” not that they actually can’t buy!)
I guess this is what happenes when “everybody is priced out forever” Given that’s what I was told for years, it’s gonna be really rough on SoFlorida since everybody is priced out forever. I guess the next RE rebound will be… well… uh… never!
They are priced out.
And it may be forever.
Here is a ‘weaner’ of a Florida deal. Short sale $100k less last sold price. Funny thing is that it’s still too expensive. But hurry gret deal per RE.
House sold in Dec/2000 for $140K last sale was Nov/2005 for $465
short sale in North Naples
thats pathetic, 1/4 acre lot, “standard” house, can be yours for 360k….. finally an affordable home my a$$.
just 18k, plus 3.4k (1 point), and a slew of other closing costs, and a monthly payment on a 5.5% 30 yr fixed of $1950.00….
No Bubble here, Move along
“‘These are not people who have been wronged,’ Saul said. ‘These are flippers who wouldn’t be saying anything if the market was going well.’ To which Rachel Craemer replied: ‘Who are they to decide? The person who makes the determination should be the buyer, not the seller.’”
I MUST AGREE with the attorney here. These are some greedy f’king people…I hope they fry on the way down.
Amen. These greedy idiots signed a contract. Assuming the developer upheld his end of the bargain, these would-be buyers shouldn’t be able to weasel out of their obligations.
At 2 Midtown, buyer Susan Linnell of Burlington, Vt., is among those seeking to get out. … ‘I couldn’t get any information out of them,’ said Linnell, a real-estate agent. ‘The whole thing started to have a really bad feeling.’”
Well, ain’t this rich. There’s something very karmic seeing people like this, who steered countless unsuspecting marks, er, clients, into houses they couldn’t afford, facing financial ruin themselves. So much for the lying Century 21 ads that claim that realtors “know the market” or “did the research on this one,” a la Suzanne. This ginch made her bed; now she gets to lie in it.
When the history of this super-boom and (soon to be) meltdown is written: If one wants to mark the absolute height of bubble craziness - it has to be somewhere around end of 2005 and early 2006 - notably when Condo Flip (that insane web site intended to match buying fools willing to pay a premium to bail out seller/flippers, buyers who actually never showed up) first started going, and when CASH FLOW GENERATOR (midget Rice twins with the late night ads) were being run very heavily in 2005 -ending with the untimely death of one of the twins, John Rice in November of 2005
Anyone by accident a bit sleepy and per chance catching CASH FLOW GENERATOR late at night with those 2 midgets riding those giant SUVs - would have believed themselves to be in an alternate reality - sort of like in the movie Back to the Future 2 when (evil) Biff basically is running the biggest finanical/gambling empire in the world and Hill Valley is overrun with whores, motorcyle gangs. and punks doing automatic weapons firing drive-bys on the house of their ex-Vice Principal from their high school -such school having been years earlier burned to the ground
raven, look at Parkland, FL. It is immediately southwest of Boca Raton. On realtor.com you will find brand new huge houses renting for $2700-3500. Communities called Heron Bay and Parkland Golf and Country Club have never lived in houses for rent. Tons of amenities.
” I just wonder how the Courts would rule on cases were the market conditions have change so much that the flipper/buyer would not even qualify or be able to perform on the contract now . If a borrower signed a contract that they have no out’s ,than it was a stupid contract to sign and very one-sided in favor of the builder and maybe that is the case .”
It is true in some cases, buyers subject to new subprime/high risk underwriting requirements - may not qualify for the loan - despite their best good faith efforts to comply
This does not appear to be the central issue in this case
It would be unusual if these contracts did not have the somewhat standard subject to financing condition, meaning that if the buyer (in good faith) fails to be able to finance - then the contract is void, however given the large reliance factor on the developer ( actually building new units for each prospective buyer) - its likely they have agreed to waive any refundability.
The buyers here assume the market risk, and an unfavorable change in market conditions by itself does not release them from the underlying contract.
Inventive and creative claims of developer material breaches which the (otherwise able to close) buyer will claim voids the contract - will likely be translated by the courts as an attempt to after-the-fact simply insulate themselves from a poor investment decision