[firemed]

The Star Banner reports from Florida. “At the start of 2006, realtors, builders and county officials extolled Marion County’s white-hot housing market. But as the year drew to a close, there was an ominous forecast that the local home building boom was headed for a bust.”

“A report released earlier this month by a consultant hired by the Ocala/Marion County Economic Development Corp., said the county’s construction levels would drop by 50 percent during the next two years and tumble back to 2001 numbers. ‘Real buyers just aren’t out there to justify the construction,’ said Policom President William Fruth. ‘[Previous] construction levels just aren’t sustainable.’”

“After the building frenzy of the last few years, contractors and Realtors found themselves in a market flooded with inventory. ‘There are quite a few incentives being offered, now that we have more inventory here,’ Wilbur Van Wyck, president of the Ocala/Marion County Association of Realtors said. ‘Negotiability is back.’”

“‘I don’t question the 50 percent [construction decrease],’ said County Commission Chairman Stan McClain, a local home builder. ‘[Other builders] are telling me their numbers are way off, too. It’s a bust.’”

This will cost alot of jobs

[Dee2e]

Originally Posted by firemed

I think it has to do with it also. Loans were out of hand when it came to subprime lending. anyone could get a loan but now its time to pay the price and most can't do it.

Particularly if those subprime loans are adjusting upward. The interest on some of those loans is out of sight.

Another issue is would be investors that purchased new homes or condos and can't afford to pay the bills until they sell.

[Jammie]

What will happen to the people who are now living in the homes when their loans adjust and they have to pay more then they can afford? Will they eventually be evicted from those homes? Where do you think they will go? Will they rent homes and apartments, leave Florida, or what do you see as happening to them?

[Dee2e]

Originally Posted by Jammie

What will happen to the people who are now living in the homes when their loans adjust and they have to pay more then they can afford? Will they eventually be evicted from those homes? Where do you think they will go? Will they rent homes and apartments, leave Florida, or what do you see as happening to them?

Unfortunately, if you can't pay your mortgage, the lender forecloses. After forecloser, you don't get to keep the house.

Where do I think those folks will go? Many will rent close to where they work and where the kids go to school.

Foreclosures are on the rise everywhere due to people overbuying. Living on credit will eventually hurt everyone.

http://money.cnn.com/popups/2006/for...lestate/2.html will show the forecast for the Central Florida area for housing.