Here comes the home price freefall! (Cape Coral, Bonita Springs: equity, real estate, foreclosures)

[hiknapster]

Engle Homes went bankrupt and sold the properties to a private equity group for $13.5 million. Now, Denny Grimes and Company is selling the homes at a major discount - just $86,000!

"There have been a lot of sellers discouraged because they think there are no buyers out there. But this has proven that buyers exist if you have the right product at the right price," said Denny Grimes.
http://naplesnews.com/news/2008/mar/...mps-nearly-60/

Good for Denny Grimes. I see he's managed to keep his head above water. I stumbled across something that he said he in the beginning of 2005. He warned that the housing boom wouldn't last, and he's a real estate broker.

And no, I've never met the guy.

Anyway, prices are starting to tumble. The new townhomes are going for $86,000. The article doesn't mention the single family home prices, but I researched it and they are going for $133,000.

[firemed]

Originally Posted by hiknapster

Engle Homes went bankrupt and sold the properties to a private equity group for $13.5 million. Now, Denny Grimes and Company is selling the homes at a major discount - just $86,000!

"There have been a lot of sellers discouraged because they think there are no buyers out there. But this has proven that buyers exist if you have the right product at the right price," said Denny Grimes.

Good for Denny Grimes. I see he's managed to keep his head above water. I stumbled across something that he said he in the beginning of 2005. He warned that the housing boom wouldn't last, and he's a real estate broker.

And no, I've never met the guy.

Anyway, prices are starting to tumble. The new townhomes are going for $86,000. The article doesn't mention the single family home prices, but I researched it and they are going for $133,000.

This is just the start,

[hiknapster]

Oh wow, I forgot to add the link!

I mentioned you, firemed, on the "Housing Market Thread" on the main Florida forum. When you posted the link about that auction last June I could hear the housing market bubble pop.

Watch the prices start to fall, now.

Anyway, here's the link.

ABC7 News Online - $86,000 homes: Taking the good with the bad

[NY62]

How much can they fall ??? the fire sale will be over soon. that will not make people sell for less than they owe unless they have to. You two are the biggest doom and gloomers going. There are homes under 100k already , how much lower do you think? lets not be silly here. who do you think will be snapping up most of those homes ? I will bet investers and they will be back on the market in 1 month for more money. You cant have homes built for less than the materials cost. So how low can the prices go? You there in tennessee seem to get a charge out of this why? I know Tennessee is one of the states that is tanking fast also , so dont sit there so smug. Firemed I was just in the cape last week and I didnt get mugged or shot once, I also seen people buying 700k houses. I dont understand you folks , most people are at there bottom, the short sales are not selling, because the banks are saying no to silly offers, it seems they will wait it out for forclosure. You keep telling people to wait , why ? when should they buy? when the prices start going up ? when the glut of homes disapear? and by the way I do not own anything there yet. so I have no financial reasons behind my statements.

[NY62]

Townhomes are all gone and only 30 something homes left. oh well. what happens when they are all gone ? the same houses that were there before the firesale will be there at the same prices. this just shows people only want super bargains, when there are no more they will buy the others.

[hiknapster]

What's up with the personal attack? So you made an offer on a home. What, are you having second thoughts? Why get so upset?

This is one of the first developments to come down on their prices, others will follow. There is a good chance that Florida, and a good portion of the country will follow. Unless you live or have lived in the area, and watched the market skyrocket, you have no idea what it was like.

No, Tennessee is not tanking. Since they didn't have a housing bubble, it is impossible to tank. However, prices and sales are down or flat.

We're in the middle of a housing market adjustment of historic proportions with an unpredicatable economy. Lee County leads the nation in foreclosures. Bear Stearns collapsed. The dollar is at an all-time low.

If prices are coming down and you want to buy, I would think that you would be thrilled. Seems like a bit of an overreaction, NY62.

[firemed]

Originally Posted by hiknapster

What's up with the personal attack? So you made an offer on a home. What, are you having second thoughts? Why get so upset?

This is one of the first developments to come down on their prices, others will follow. There is a good chance that Florida, and a good portion of the country will follow. Unless you live or have lived in the area, and watched the market skyrocket, you have no idea what it was like.

No, Tennessee is not tanking. Since they didn't have a housing bubble, it is impossible to tank. However, prices and sales are down or flat.

We're in the middle of a housing market adjustment of historic proportions with an unpredicatable economy. Lee County leads the nation in foreclosures. Bear Stearns collapsed. The dollar is at an all-time low.

If prices are coming down and you want to buy, I would think that you would be thrilled. Seems like a bit of an overreaction, NY62.

I just find it strange that with construction jobs at a stand-still and foreclosures at a all time high people still don't think the Florida economy is changing. The City of Cape Coral in on a freeze, With all the floods this week in the north, is it too obvious alot of areas will need construction workers asap. And this is when the snowbirds go home. We may see alot more people heading north! This summer will tell the story. Freefall Doom and gloom or Reality? I guess we will see.

[121804]

What is the Lee County figure right now in terms of For Sale?

If I remember correctly, in Oct it was in the area of 24,000 single family; one of the highest in the nation.

Our realtor in PG told us 16 months ago we had to buy by the end of summer of 07 or all the deals would be gone...yeah, right...the one house we did like is still for sale & $55k less than last year at this time.

Lee County is a mess in terms of the housing market & no real economy to support it. It makes the national news on a frequent basis due to this reality. I'd think if one was a retiree or snowbirder though this time would be perfect down there to buy.

[tallrick]

I do not understand why some people are angry that prices are falling? A crashing real estate market will allow new businesses to start and the economy will become stronger. A housing bubble sucks away all profits, fills inefficient local government coffers and bankrupts hard working families. Once the price of a single-family home = 3x median family income the bubble will be over.

[justNancy]

I was at this "clearance sale" for hours. The development did not simply "come down" on its prices. The builder filed for bankruptcy and had 110 empty townhouses and single family homes. An investor purchased all of them for one price and is selling them off at a discount.

There were some claustrophobic townhomes starting at $86,000 that were smaller than many condos I've seen in the same price range. The single family homes ranged from $133,990 to over $276,000. I am looking at the list I picked up at the sales office right now. Although Coral Lakes is a lovely community, the homes were built on .17 acre lots and are comparable (if not higher) to many houses listed on the Cape. All you need to do is look at the MLS and you'll see brand new houses (some with pools) on .25 acres for less. Still, if someone doesn't mind paying the additional $300 a month HOA and enjoys having someone else mow the lawn, it's not a bad deal, providing the monthly fee doesn't skyrocket. The barrel tiled roofs are very nice and the landscaping is also very pretty. One thing to consider is the distance from the interstate, route 41 and major shopping, since gas is averaging $3.39 a gallon. I live in Bonita Springs and am close to the beach, about 1 mile from route 41 and 5 or 6 miles from I-75. Living there would make me feel isolated, but everyone has his/her own preference.

At first I considered buying one of these homes, but I just couldn't handle the mob. There was no time whatsoever to ask questions. For example, I saw a home I liked and drove back to the sales office to inquire about the taxes. Someone had just put a deposit on it. So I looked at another home in the same general price range and that was also unavailable. Maybe there was more of a selection on Wed, but by Thurs most of the smaller homes were around $150-$160K. Also the 3 bedroom I looked at was a 2 bedroom with a bonus room since one very small room didn't have a closet. It would make a nice office, since it was just off of the living room, but I wouldn't call it a bedroom.

It was really chaotic. One man was furious because he put a deposit on a home Wed and when he returned was told someone had already purchased it. It was worse than a BOGO sale at Marshall's or when Burger King was giving away free fries.

To all who bought their dream homes last week, I wish you many years of happiness. I'm sure you got a great deal. Denny Grimes has a very good reputation as a broker. I just can't buy the most important purchase of my life in 5 minutes under pressure.