Here's my take - condos are like day traded stocks in 1999.. houses are like bonds...
People actually LIVE in houses - thus they're more difficult to day-trade. Condo though are like pieces of paper - that can be bought and sold very quickly, and mass produced very quickly too, as you stack 'em on top each other vs. one per parcel of land like a house
So.. what goes up must come down, and condos will be first to fall. It happened 20 years ago in Florida, and it's happening now
Call it "condo-mania" uncontrolled condominium construction and high prices. It hit the Tampa Bay area in the early 1980s. The area is just beginning to recover from that condo glut . . . If you're shopping for a condo, the best deals are to be found in foreclosures or resales by investors.
This history lesson is from a 1987 story in the St. Petersburg Times.
I bring it up as I drive around Orlando, looking at the increasing number of "For Sale" signs in front yards, taking note of those that have had their "Price reduced."
The number of homes on the market is at an eight-year high. We are shifting from a seller's market to a buyer's market. The speed at which this is happening is remarkable, given that interest rates remain low.
November 30, 2005
Posted by blogger at 11/30/2005