Do home sellers have any idea how bad it is out there (and that it's just gonna get worse)?
Home ain't selling? Hint: it's the price stupid. It will always be the price stupid.
Good article from the International Herald Tribune, read by tens of thousands of Brit flippers getting slaughtered in housing-crash-central Florida:
The celebration is over as Floridians are battered by the housing slump
Until the housing slump hit two years ago, the worst thing that Floridians feared was the hurricane season. Now, they are in the middle of a different type of storm.
In some areas of Florida, real estate prices have fallen by as much as 40 per cent since the height of the property boom in 2005.
Craig Studnicky, of International Sales Group in Florida, another property broker, said: “We are having to cope with five or six years of oversupply. Right now, the market is a Mexican stand-off. There are buyers out there, but no one wants to drop their prices. The market is at a complete standstill.”
September 12, 2007
Supply and Demand, meet Prices. Florida housing crash and mortgage meltdown makes international news as Brit flippers get slaughtered.
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23 comments:
Dumb, toothless Brits.
"""What happens in Florida Doesn't Stay in Florida""" Look out world here comes the Florida Flu....
At least the crashing USD lessens the blow to their pocketbooks
What do you think will be the effect of the crash on big corporate land owners in Florida such as St. Joe (JOE)? - JOE is one of the stocks in our radar and it seems to have come down a long way from the peak...
Regards,
http://OneFamilysBlog.blogspot.com
.
Real estate is a lot like a horse race,
A bunch of horse's asses showing a bunch of horse's asses to a bunch of horse's asses!
.
and it will remain like this for along time. Chicago is in a total standoff. Our Central Patry (Daley Democrat) planned economy just keeps building condos. I saw 8 giant crains in the once unwanted South Loop. There is over a year's supply of condos RIGHT NOW, with hundreds more coming down the mountain! Look out below!!
Dr buddy of mine just bought a condo in Florida. The price was just to good 700000 for a 1.2 million dollar condo. In a few years (50 at least) he will double his money and retire?? Of course if the FED lowers he can double his money in a year. Problem is due to the dollar tanking he will still lose 50%.
actually the crashing usd makes their investments that much more severe, since they have to deal with the shittier exchange rate when selling
Its Florida--who cares. Nobody of any improtance lives there and nobody from florida has attained prominence in any field (o.k. except for Burt Reynolds). Think about it, the place started as a real estate scam and here we go again....Those who fail to learn from history.......Seriously, its Florida who gives a shit. Fuck them, the people in Vegas and Arizona and suburban LA. Vermin all.
Eek! You mean that the 'thousands of people moving to Florida every day' aren't buying homes/condos anymore? Good thing that real estate "never goes down" in price. LOL
The growth in unwanted condos may be matched only by the growth in former real estate agents who can't make a living fooling people into buying homes they cannot afford. Regarding the lack of buyers, the supply of 'greater fools' is apparently not endless.
"Its Florida--who cares. Nobody of any improtance lives there and nobody from florida has attained prominence in any field (o.k. except for Burt Reynolds)."
What about Vanilla Ice??
OK I see your point.....
Keith,
Saw something in the local paper the other day about the plummeting RE prices in Spain, due to overbuilding for the high demand by British speculators.
It may be quite gloomy in England this winter.
hey anon, your dr. buddy did not get a 1.2 million dollar condo for 700k.
he got a 700k condo for 700k.
People in fl are angry in general mostly because of the cost of living compared with incomes. Now to make even worse is the standstill between buyers and sellers here! Everyone who wants to sell their house or "Investment Property" is stuck and slowly sinking! I would have to imagine it is similar in Phoenix. Florida also has a major tax problem to solve before anything can get better and the proposal was dissapointing attempt to fool the people by our corrupt politicians. Florida is screwed until these issues get solved. No hurricanes please!!!
RE: Florida housing crash and mortgage meltdown makes international news as Brit flippers get slaughtered.
It looks like a desperate situation, but there may be hope.
If the dollar index continues to slide into the low 70s,(or even 60s) the increased value of the pound may offset the losses of the Florida real estate collapse.
There'll always be an England, as long as there's a USA.
V.L.
I think the British are reliving their Imperial days by buying property all over the world. I would bet most of their second homes have been financed by MEW and that they are going to lose their shirts first in their colonies,then at home. Evereyone here in the UK think property only goes up..
The state that helped 'select' the worst President in history deserves all the pain headed in its direction...REVENGE IS SWEET!!
The Problem with Florida is, every one here is from some place else. The state attracts the dregs of society, and there is very little sense of community or culture. People here actually enjoy stabbing each other in the back. Too much diversity leads to a lack of caring for each other. Go to any sports bar, and you will have 10 different groups rooting for 10 different teams. Not a chance of building up any kind of camaraderie.
/carpet bagger & immigrant basher switch = ON
It hath been witnessed by my own eyes many, many times. Much of the real estate bubble has been driven by non U.S. citizens idiots. They purchase U.S. real estate at stupid, astronomical prices. I have seen it in FL and CA many, many times.
Of course, it's %50 the U.S. Gov't fault as well, as they are all to happy to let carpet baggers buy up much of the froth. Until it crashes of course and the Gov't says "MY! I'M SHOCKED We may have a policy problem here!"
That's why places like INDIA, dont allow foreigners like USA CITIZENS, to buy property.
NICE, aint it? Most foreign countries control who can buy real estate. Just dont expect the same "free trade" deal the other way.
AND BTW, "Patel" is about as British ethnic a name as "Radhakrishnan".
/carpet bagger & immigrant basher switch = OFF
anon 8:09: It depends on where they sourced the money. If they paid with their own money they are screwed. If they borrowed from a local bank they are screwed.
If they borrowed US funds though, a crashing US dollar will reduce their losses (in their local currency).
What I want to know is who is the greedy one, the seller or the realty clerk?
If I'm a realty clerk I wouldn't take a listing unless I know the seller is serious about selling or in other words willing the lower the price to a realistic level, (price/earnings) for the realty clerks that really don't know what the hell they are doing.
Noone is going to buy no stinkin' house or condo for some ridiculous sky high price!!!
At some point, the skyrocketing costs of home/flood insurance has to drag the prices down. Not only can you not get a jumbo mortgage anymore - but insurance has got to be taking a big bite out of monthly expenses if you can even get it. Public schools suck down there so at least the taxes are still fairly low.
To Michael said he didn't get a 700k condo for 700k he got a 400k condo for 700k. That was my point he is screwed.
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