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The Bradenton Herald reports from Florida. “April marked the second month in a row that saw existing-home sales in the Bradenton-Sarasota market increase. It was the only market in the state that showed a positive change, according to numbers released by the Florida Association of Realtors.”
“‘We’re not as bad as everybody else in the state, maybe even in the country,’ said Ron Cornette, Wagner Realty’s marketing and training coordinator.”
“Prices aren’t holding quite as strongly. ‘There are equal levels of price reductions and new listings practically every day,’ Cornette said.”
“On Wednesday, there were 97 new listings in Manatee and 94 price reductions, according to MLS.”
From USA Today. “Each bit of news about the softening housing market makes these real estate investors, hoping for a turnaround, even more nervous, says Rob Alpert, a financial adviser based in Long Island with several clients who bought investment property in Florida.”
“‘They’re waiting and seeing. They’re miserable,’ says Alpert, who has advised clients with shakier finances to take the loss. ‘Don’t make this worse,’ he tells clients.”
The St Petersburg Times. “No one denies the Tampa Bay area housing market is flatter since the frothy sales and prices of 2004 and 2005. Prices have plunged from their peaks as too few buyers chase too many homes.”
“The Times talked to two nationally known economists whose opinions mostly clash on this issue.”
“Jan Hatzius, Senior economist, Goldman, Sachs & Co, believes Florida’s record home price appreciation since 2000 now makes the state ‘the epicenter of the U.S. housing bust.’ His take: Homes prices will decline deeply for a couple of years.”
“Hatzius: ‘Forty percent is the current level of overvalue in Florida. I would guess the area will have 10 percent or 15 percent price declines for a couple of years. Beyond that, my crystal ball doesn’t go.’”
The Sun Sentinel. “A delegation from Broward County’s real estate industry implored state Rep. Ellyn Bogdanoff on Thursday to push for the deepest possible property tax cuts during next week’s special legislative session.”
“Several of the 15 real estate agents and others who work in related areas told Bogdanoff that the escalation in property taxes during recent years has helped choke their business.”
“‘It has to be made affordable again. That is the issue,’ said Diane Hedges, an agent in Fort Lauderdale.”
“The real estate industry did well during the booming market in the first half of the decade. Now, its representatives say, they’re suffering. ‘It went from busy to slow to downright nothing,’ said Joe Roberto, of Roberto & Associates title and closing services. ‘It’s scary.’”
From Winknews. “You’re not going to believe what some brand new townhomes went for on the auction block Thursday night in Fort Myers, considering where prices have been. A three bedroom townhome previously priced at $310,000 sold for about $180,000!”
“Greg Toher was outraged when he heard the prices some of the homes were going for. Walking out of the auction room, he told us, ‘$145,000! Unbelievable! We paid $300,000! They just got rid of at least four for $145,000!’”
“He says he closed on his three bedroom San Simeon townhome in December, ‘You’ve got to be kidding me, that’s not fair.’”
“Tara Gionpalo said, ‘I feel really mad, really sad, hurt.’ Victoria Toher said the developer went back on their word, ‘They promised us they were not going to go below market value.’”
“Levitt and Sons representative told WINK News that the homes did go for fair market value…as determined by the hundreds of bidders at the auction.”
The Star Banner. “Local manufactured housing producer Nobility Homes blames a slowdown in the housing market for a sharp drop in second-quarter financial results.”
“The company reported sales declined 38.1 percent in the second quarter of 2007 compared to the second quarter of 2006. Income from operations dropped by 54.6 percent compared with the same quarter last year.”
“Nobility President Terry Trexler said in the statement that sales and operations for the quarter were ‘adversely impacted by the reduced manufactured housing shipments in Florida plus the overall decline in Florida and the nation’s housing market.’”
The News Press. “Cape Coral contractor R. Fry Builders has started partially dismantling houses where the customers are balking at closing the deal, removing doors, windows, air conditioners and other items.”
“Fry officials said they’re responding to an increasingly common phenomenon caused by plunging real-estate values that have left buyers unwilling or unable to close the deal because the mortgage would be more than the house is worth.”
“‘It’s industry-wide and every builder has gone through it,’ R. Fry operations manager Charlie O’Key said. ‘We’re building them and they’re leaving us holding the bag. We’ve laid out our money, but we’re not being paid.’”
“Michael Reitmann, executive vice president of the Lee Building Industry Association, said he has only recently heard of local builders taking similar action. ‘Within the last three weeks I’ve heard of three different instances.’”
“Before that, he said, ‘It may have happened but never in the 20 years I’ve been here.’”
“Andrea Rols tried unsuccessfully to file a theft report with the Cape Coral Police Department for damage to a house being built as an investment for her mother. Rols also is having a house built by R. Fry but said nothing has been taken from it.”
“She’s angry at what happened to her mother’s house and blames R. Fry for being late in finishing the houses, which are almost finished after the permits were pulled in late 2005.”
“Rols acknowledged she and her mother are behind on payments but blamed that on R. Fry’s slow pace of construction. Now they’re having to pay the interest on the construction loans because construction has gone on so long, she said.”
“Whoever is right, government intervention appears unlikely. Joe Friedman, deputy press secretary with the state Department of Business and Professional Regulation, said from his agency’s point of view, ‘This is actually a civil issue. It would be a breach-of-contract issue’ between the builder and the customer.”
“At the height of the market in December 2005 the median resale price for a single-family home in Lee County was $322,300; it dropped to $283,200 in April, according to the Florida Association of Realtors.”
“Meanwhile, the number of foreclosure notices filed in Lee County court has spiked this year: 783 in April, six times the number from a year earlier.”
The Bradenton Herald reports from Florida. “April marked the second month in a row that saw existing-home sales in the Bradenton-Sarasota market increase. It was the only market in the state that showed a positive change, according to numbers released by the Florida Association of Realtors.”
“‘We’re not as bad as everybody else in the state, maybe even in the country,’ said Ron Cornette, Wagner Realty’s marketing and training coordinator.”
“Prices aren’t holding quite as strongly. ‘There are equal levels of price reductions and new listings practically every day,’ Cornette said.”
“On Wednesday, there were 97 new listings in Manatee and 94 price reductions, according to MLS.”
From USA Today. “Each bit of news about the softening housing market makes these real estate investors, hoping for a turnaround, even more nervous, says Rob Alpert, a financial adviser based in Long Island with several clients who bought investment property in Florida.”
“‘They’re waiting and seeing. They’re miserable,’ says Alpert, who has advised clients with shakier finances to take the loss. ‘Don’t make this worse,’ he tells clients.”
The St Petersburg Times. “No one denies the Tampa Bay area housing market is flatter since the frothy sales and prices of 2004 and 2005. Prices have plunged from their peaks as too few buyers chase too many homes.”
“The Times talked to two nationally known economists whose opinions mostly clash on this issue.”
“Jan Hatzius, Senior economist, Goldman, Sachs & Co, believes Florida’s record home price appreciation since 2000 now makes the state ‘the epicenter of the U.S. housing bust.’ His take: Homes prices will decline deeply for a couple of years.”
“Hatzius: ‘Forty percent is the current level of overvalue in Florida. I would guess the area will have 10 percent or 15 percent price declines for a couple of years. Beyond that, my crystal ball doesn’t go.’”
The Sun Sentinel. “A delegation from Broward County’s real estate industry implored state Rep. Ellyn Bogdanoff on Thursday to push for the deepest possible property tax cuts during next week’s special legislative session.”
“Several of the 15 real estate agents and others who work in related areas told Bogdanoff that the escalation in property taxes during recent years has helped choke their business.”
“‘It has to be made affordable again. That is the issue,’ said Diane Hedges, an agent in Fort Lauderdale.”
“The real estate industry did well during the booming market in the first half of the decade. Now, its representatives say, they’re suffering. ‘It went from busy to slow to downright nothing,’ said Joe Roberto, of Roberto & Associates title and closing services. ‘It’s scary.’”
From Winknews. “You’re not going to believe what some brand new townhomes went for on the auction block Thursday night in Fort Myers, considering where prices have been. A three bedroom townhome previously priced at $310,000 sold for about $180,000!”
“Greg Toher was outraged when he heard the prices some of the homes were going for. Walking out of the auction room, he told us, ‘$145,000! Unbelievable! We paid $300,000! They just got rid of at least four for $145,000!’”
“He says he closed on his three bedroom San Simeon townhome in December, ‘You’ve got to be kidding me, that’s not fair.’”
“Tara Gionpalo said, ‘I feel really mad, really sad, hurt.’ Victoria Toher said the developer went back on their word, ‘They promised us they were not going to go below market value.’”
“Levitt and Sons representative told WINK News that the homes did go for fair market value…as determined by the hundreds of bidders at the auction.”
The Star Banner. “Local manufactured housing producer Nobility Homes blames a slowdown in the housing market for a sharp drop in second-quarter financial results.”
“The company reported sales declined 38.1 percent in the second quarter of 2007 compared to the second quarter of 2006. Income from operations dropped by 54.6 percent compared with the same quarter last year.”
“Nobility President Terry Trexler said in the statement that sales and operations for the quarter were ‘adversely impacted by the reduced manufactured housing shipments in Florida plus the overall decline in Florida and the nation’s housing market.’”
The News Press. “Cape Coral contractor R. Fry Builders has started partially dismantling houses where the customers are balking at closing the deal, removing doors, windows, air conditioners and other items.”
“Fry officials said they’re responding to an increasingly common phenomenon caused by plunging real-estate values that have left buyers unwilling or unable to close the deal because the mortgage would be more than the house is worth.”
“‘It’s industry-wide and every builder has gone through it,’ R. Fry operations manager Charlie O’Key said. ‘We’re building them and they’re leaving us holding the bag. We’ve laid out our money, but we’re not being paid.’”
“Michael Reitmann, executive vice president of the Lee Building Industry Association, said he has only recently heard of local builders taking similar action. ‘Within the last three weeks I’ve heard of three different instances.’”
“Before that, he said, ‘It may have happened but never in the 20 years I’ve been here.’”
“Andrea Rols tried unsuccessfully to file a theft report with the Cape Coral Police Department for damage to a house being built as an investment for her mother. Rols also is having a house built by R. Fry but said nothing has been taken from it.”
“She’s angry at what happened to her mother’s house and blames R. Fry for being late in finishing the houses, which are almost finished after the permits were pulled in late 2005.”
“Rols acknowledged she and her mother are behind on payments but blamed that on R. Fry’s slow pace of construction. Now they’re having to pay the interest on the construction loans because construction has gone on so long, she said.”
“Whoever is right, government intervention appears unlikely. Joe Friedman, deputy press secretary with the state Department of Business and Professional Regulation, said from his agency’s point of view, ‘This is actually a civil issue. It would be a breach-of-contract issue’ between the builder and the customer.”
“At the height of the market in December 2005 the median resale price for a single-family home in Lee County was $322,300; it dropped to $283,200 in April, according to the Florida Association of Realtors.”
“Meanwhile, the number of foreclosure notices filed in Lee County court has spiked this year: 783 in April, six times the number from a year earlier.”
I think home price should go back to late 90's levels.
It's insane paying $250,000+ for 2 bed crackerbox home!
What's even more inconceivable is that some of the people who bought at that price or over now want to pass along the debt and sell it for the same price or more then that. It's like some people don't understand that the tremendous prices on the homes has a lot to do with the horrific insurance rate and taxes.
Very true Jammie. This thing will spiral downward for a long, long time. Some people are firmly in denial and think a rebound is a few months away. Or that this will follow the pattern of past real estate problems in NY or Mass. They really think some huge influx of retiring baby boomers is going to want all these 3-4-5 bedroom homes with $4000-5000/month carrying costs.
So many converging negative factors are coming together to make the perfect storm for Florida real estate's decade long collapse.
What's even more inconceivable is that some of the people who bought at that price or over now want to pass along the debt and sell it for the same price or more then that. It's like some people don't understand that the tremendous prices on the homes has a lot to do with the horrific insurance rate and taxes.
Agreed. What's more inconceivable to me is that people still believe the FL market is starting to pick up and are buying. Still, each to his own I guess.
Sad news for those trying to sell, great news for those who want to buy in the next few years...
Are people really buying right now because they think the market's going back up in 3-4 months??? That's hard to believe
Quote:
Originally Posted by UKOK
Agreed. What's more inconceivable to me is that people still believe the FL market is starting to pick up and are buying. Still, each to his own I guess.
Agreed. What's more inconceivable to me is that people still believe the FL market is starting to pick up and are buying. Still, each to his own I guess.
When you say Florida what market are you refering to? Florida is very diverse.
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check this out on youtube..
It's like some people don't understand that the tremendous prices on the homes has a lot to do with the horrific insurance rate and taxes.
