February 24, 2006

I just wonder what it's gonna look like when those tens of thousands of Miami condos hit the market


What do they say - adding fuel to the fire? Think of all those condos in Miami (and Phoenix, and San Diego, and DC, and Boston, and ...) that were started a couple years ago, all "purchased" by speculators, that are going to be hitting this poisoned market in just the next few months.

Oh, man, it's gonna get ugly(ier). I hope many of you went to higher ground. It's too late really to do anything - those days were last year. Now it's time to grin and bear it. It's hitting the fan right now.

Homes hit the market in record numbers

When Taffie Prince placed her Apopka home on the market last fall, she figured it would be snapped up within weeks. Four months later, she's still waiting. And the asking price has been lowered by $5,000 in the past 90 days to $154,900.

"I was told the quarter-acre of land would sell the house. But it's still for sale. I don't know what else to do," Prince, 32, said Monday. Part of the problem: The inventory of Orlando-area homes for sale has ballooned again. Suddenly, for-sale signs are everywhere.

The Orlando Regional Realtor Association reported Monday that the record 12,015 existing homes for sale in January in the core Orlando market was nearly four times the number available a year earlier.

And most of those homes hit the market in January, when members entered 6,172 homes with the Mid-Florida Regional Multiple Listing Service, compared with 2,970 in January 2005.

"It's getting a little scary," said Franco Ferrari, co-owner of Ample Realty in Orlando, the agency listing Prince's three-bedroom home.

34 comments:

Anonymous said...

just like the telecom companies adding capacity in 1999 right before the mother of all crashes

the builders and developers adding units to the fire (the market) right at the exact time they're not needed

flippers are going to be walking away from their deposits left and right

moman said...

Orlando is slightly better than a slum. Can you imagine working in a city driven almost entirely by tourism? Disney throws a fit about everything that doesn't go it's way. (Remember the bullet train that was going up I-Drive?)

Sorry - remove the big Rat and 50% of Orlando is gone. The economy there was in shambles after 9/11. It will be a poster child for what happens when cash-outs dry up and expensive vacations stop.

Anonymous said...

I live in Miami and still renting out of fear, but I guess I should say intelligence. The amount of condos is amazing. Our skyline is forever changing. No one seems to know who is buying these expensive small places many of which are in dangerous and neglected neighborhoods.

Most locals laugh in horror, but there are many people with no real estate experience that have cashed in on the interest in their shacks in the hopes of flipping another propery. Of course a lot of people have made some money, but even more are going to lose out. The people who are really going to suffer are the little guys.

Case in point: a cab driver telling me about his plans to refinance a house he bought years ago to buy a pre-construction condo in Doral where nobody wants to live or commute from. He said they tell him it will be built in 8-12 months. Yeah right! He said that was too long and I said that is too fast b/c it couldn't possibly be done in that amount of time.

Contractors can't even get the equipment and people to build b/c they are tied up here or have left for the Gulf Coast.

Needless to say, this conversation ended with the Cabby telling me he lost tons in the stock market. I kept thinking and you are about to lose tons in the housing market. He finished the conversatin saying that he doesn't believe the prices will go down. I believe that they already have. The days of "gifting" the seller 20-40k over asking to lock in your deal are done!

To sum it up, we have COMPLETE DENIAL down here even though all signs are pointing to a current slowdown and possibly a bust in the next year or so. I see many just reduced signs and the market is flooding. Two developers pulled out of building their huge condo buildings and it looks like another is slated to do the same. Those poor fools who were hoping to flip are now most likely not going to get all of their deposit back.

This is just the beginning.

answer-man said...

ps I'm having a little trouble sending comments so if I do it twice please excuse me and I apologize.

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Anonymous said...

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Anonymous said...

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Anonymous said...

Hint #12 for . Harmonize The Elements: FM radio or stereo on softly, TV off. All lights on, day or night. Drapes open in the daytime, closed at night. If it's hot, cool it!

Anonymous said...

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Anonymous said...

With the , you don't have strangers coming through your home, day after day, often week after week, at times which are not always convenient. Your home must look great ... truly great ... for one weekend only .

Anonymous said...

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Anonymous said...

Hint #10 for . Arrange Bedrooms Neatly: Remove excess furniture. Use attractive bedspreads and window treatments, with freshly laundered curtains if you use them.

Anonymous said...

Hint #4 for . Fix That Faucet! Dripping water suggests faulty plumbing, one of the greatest fears that savvy buyers have.

Anonymous said...

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Anonymous said...

watch "absorption rates" closely. It's a time-tested yardstick for home sales. Does it prove that the Housing Bubble has already popped? You bet it has.

Anonymous said...

In this "cooling off" real estate market, suggest that the average residence is shown about 4 times a week during the first 3 weeks of a real estate listing. After that, an unsold home goes "stale" ... it gets shown less .

Anonymous said...

Hint #9 for . Bathrooms Sell Homes: Check and repair caulking in bathtubs and showers. Make the room sparkle!

Anonymous said...

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Anonymous said...

The No. 1 sellers' complaint on the is the "showing" process ... the line of people trudging through their home, inspecting their lives, in search of who knows what .

Anonymous said...

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Anonymous said...

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Anonymous said...

Hint #3 for . Let The Sun Shine In: Open draperies and curtains and let the prospect see how cheerful your home can be. Dark rooms do not appeal. One trick which always seems to work is to replace 60-watt bulbs with 100-watt bulbs, and have your Realtor� turn them all on, even for a daytime showing (and off again after the showing).

Anonymous said...

. Noise does not sell well. Let the Realtor� and buyer talk, free of disturbances. Background "soft playing" music is okay, but the wrong sounds will turn buyers off. Noisy children and animals are roadblocks to a contract � and traffic, trains, and planes must be dealt with honestly, if they are part of the deal. Go here for more ideas.

Anonymous said...

You can do a lot to For example, curb appeal sells: do some landscaping. Plant some flowers. Remember that the front door greets buyers. Make sure it offers potential a bright, warm welcome.

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