Brookings Institution Reports: Cape Coral Has the Worst Economy in the Nation (Fort Myers: sales, loans)

[yoko]

Originally Posted by yoko

"

There were about 80 regions in the country that fared better than South Florida during the recession, a new study reports.

The good news: We're not Cape Coral.


Among the nation's 100 largest metropolitan areas, South Florida sits in the bottom 20 when it comes to job losses, a shrinking economy and collapsing real estate prices, the Brookings Institution said Tuesday.

• South Florida's economic output dropped 3.3 percent in the recession, the 83rd worst performance in the country but far better than Cape Coral's 15.1 % slide into 100th place.

• South Florida saw prices plunged 44 percent between 2007 and 2010, earning it the 93rd slot on the Brookings list for that measure. Two Florida regions fared worse: Bradenton, with a 46 percent drop and Cape Coral with a 51 % drop. Modesto, Calif., finished last, with a 56 percent plunge in housing prices over three years. "


June/16/2010
Report: South Florida area among hardest hit by recession - Business - MiamiHerald.com (http://www.miamiherald.com/2010/06/16/1682637/study-confirms-the-pain-south.html - broken link)

“ 90% of the homeowners in the Cape Coral/Fort Myers MSA are underwater. Their average mark-to-market loan-to-value ratios are 126% and 188% respectively.


Struggling homeowners in Florida will have limited ability to face any additional economic challenges brought on by the Gulf oil spill, according to Fitch Ratings.


Also among the study's more notable findings, 'Florida already ranks the worst among all states in mortgage delinquencies across all product types,' said Managing Director Sxx.

'Additionally, Florida contains a disproportionate amount of non-prime loans, with 85% of loans being categorized as Alt-A or Subprime.' Such products have become associated with weaker performance in general. This is especially meaningful in Florida where severe home price declines have impacted most areas of the state.

On an aggregate basis, 81% of all loans in the state are 'underwater', and the average mark-to-market loan-to-value ratio of Florida loans is 138%. 'Nearly 40% of all Florida borrowers owe more than 150% of the value of their homes,' said Sxx. Although half of all borrowers in the state are current on their mortgage payments, they owe 120% of their home values.

Given the significant negative equity, 'further economic stress brought on by the Gulf oil spill and declines in the tourism and fishing industries would be likely to further increase default rates,' said Sxx. “



June/28/2010
Fitch: Oil Spill May Intensify Problems for Troubled Florida Mortgage Borrowers | Earth Times News






Zero economic stability.

Do your own independent research on Google on important issues related to this area and do not believe realtors', desperate house owners', flippers' "fairy tale" stories about Cape Coral.

[yoko]

Given the significant negative equity, 'further economic stress brought on by the Gulf oil spill and declines in the tourism and fishing industries would be likely to further increase default rates,' said Sxx. "








June/28/2010
Fitch: Oil Spill May Intensify Problems for Troubled Florida Mortgage Borrowers | Earth Times News


Because of glut of foreclosed homes and high unemployment, Cape Coral will have the problem of "deflation". Rental market has already fallen victim of deflation.

With 90% of homes underwater, as soon as one closes on one's house, it will be less valuabe because so many of houses are coming back to the market..and the new foreclosed home are better ones left behind by owners with high FICO scores.

In a shrinking economy like Cape Coral's. Cash is the king.

[BritPop]

Cape Coral's Sandoval stays strong

[yoko]

" Cape Coral registered some of the steepest declines in real estate values in the COUNTRY.

property values have dropped 55 % since 2007 in Lee County, where Cape Coral is located.

"I've been here 30 years, and I've never seen anything like this before," property appraiser Ken Wilkinson told the newspaper."


June/07/2010
http://journalstar.com/news/opinion/...cc4c03286.html



Instead of a house, buy an alarm clock!

[BritPop]

Spanish banks eager to invest in Florida

"We believe the next 12 to 18 months will be a time for tremendous opportunity and substantial market-share growth in South Florida and we look forward to this challenge.
Jorge Rossell is chairman and chief executive of TotalBank"

Read more: http://www.miamiherald.com/2010/07/05/1713119/spanish-banks-eager-to-invest.html#ixzz0soZO8N6u (broken link)

[mnpedwards]

Overseas investment must be strong. I'm seeing lots more multi-lingual signs in the area.

[yoko]

British Investors:

But in spite of apparent favourable conditions, there is no stampede of British buyers. "Compared with just two years ago, British buyers of American property are down by more than 70 %," says Mark Bodega of currency exchange specialist HiFX. "Those remaining are cash-rich investors who can afford for property prices to fall at least in the short term."


July/04/2010
Grab a slice of the American dream while it's still cheap - Mortgages, Money - The Independent



Dutch investors:

" Here are the top three of all time foreclosures in Lee County, all filed within the past year:
• Grosse Pointe Development: A total of $340 million in debt owed to Dutch bank SNSPF Interim Finance B.V. for:
Tarpon Point in Cape Coral,
Bell Tower Park in south Fort Myers
and a rock mine in Bonita Springs.

The land for Tarpon Point, the Cape waterfront tower project, was purchased by Grosse Pointe in 2001 for $29 million and work on the high-rise condos and other parts of the project continued throughout the decade.

But the 19-story, 184-room The Resort at MarinaVillage at Tarpon Point hotel opened in November 2009, a scant two months before SNSPF Interim Finance filed for foreclosure against Grosse Pointe. "


June/06/2010
http://www.news-press.com/article/20...w--burned-many



German Investors:

"From Boston to Honolulu, Deutsche Bank is America's Foreclosure King."

" Deutsche Bank, is deeply involved in the American real estate crisis. After initially profiting from subprime mortgages, it is now arranging to have many of these homes sold at foreclosure auctions.
Deutsche Bank now holds loans for American single-family and multi-family houses worth about $3.7 billion.


06/10/2010
http://www.spiegel.de/international/...9754-3,00.html

[BritPop]

Don't some people get paid to talk down markets on the internet?

[KasperFile]

Please help us understand, how one would benefit from “talk down markets on the internet" ? On the contrary people will befit “make money” talking up” it’s called pump and dump “ here read Pump and dump - Wikipedia, the free encyclopedia if their able to convince others a markets a good investment when it’s not.

I could understand you not wanting public talk down on your investments but on the other hand their no bad talking here just pointing out published facts. if you dispute any of these published facts go to the publishers and despot don’t shot the messengers trying to help others from falling into the same bad investments.

[BritPop]

Originally Posted by KasperFile

Please help us understand, how one would benefit from “talk down markets on the internet" ? On the contrary people will befit “make money” talking up” it’s called pump and dump “ here read Pump and dump - Wikipedia, the free encyclopedia if their able to convince others a markets a good investment when it’s not.

I could understand you not wanting public talk down on your investments but on the other hand their no bad talking here just pointing out published facts. if you dispute any of these published facts go to the publishers and despot don’t shot the messengers trying to help others from falling into the same bad investments.

Well, people get paid to post negative/positive topics across a variety of forums in order to affect a market so it becomes favourable to what the "marketer" wants.

In this case, it would be to continue to affect SWFL real estate prices by engendering a climate of fear across a number of factors.

Then, when the prices have hit rock bottom, the investor buys.

The negative comments posted on such a regular basis by the same posters tells its own story.

FFI, read ***MOD CUT*** posts!!

BTW, Yoko Ono helped to break the up the Beatles by creating tensions and negativity so maybe a clue lies in the name too!