Why is he blaming investors? (Tampa, Hernando: real estate, foreclosures, renters)

[bentlebee]

Bay Area Has Worst Hit Ever As Housing Slump Continues

TAMPA - In the face of rising inventories of vacant homes and declining orders for new ones, Tampa Bay homebuilders slashed construction 59 percent in 2007, according to preliminary data released Thursday by Metrostudy, a Houston-based housing research firm.

In the fourth quarter, they broke ground on 1,523 single-family and town homes in the combined markets of Hillsborough, Pinellas, Pasco, Hernando and Citrus counties examined by Metrostudy. That's down 50 percent from the same quarter a year ago.

HOUSING SLUMP CONTINUES BAY AREA HAS WORST HIT EVER (http://www.tbo.com/news/money/MGBVQ7E2KBF.html - broken link)


Builders made a lot of money paid by investors and the builders raised the prices and made a lot of money. Than didn't allow investors to buy their product so the builder could make more money. Than the market slowed down and builders were even calling investors to come back in and buy
And now they can't sell there product and the investors are to blame
If they can sell to an investor right now to would be very happy. I get emails every day from builders to buy their inventories with many discounts. So blaming, bagging and trashing, what is the deal with builders?

[FIU2000]

Well you don't think they would blame themselves do you? I work for a builder and heard the same story too. One thing I will admit is that it does stink when you live in a neighborhood that is largely owned by investors. I am surrounded by renters and foreclosures/vacant houses, mainly the latter and the property mgmt companies don't do a good job about keeping up those properties. We've got weeds going up everywhere, even the driveways and it just makes the neighborhood look ugly.

[bentlebee]

I do agree that it's bad if people don't keep up their properties. who ever they are. In my opinion the banks who owns the foreclosure homes are the worst, not the investors although there is always a rotten apple.
I have a foreclosure across the street which wasn't maintained by the owner (investor) and the banks doesn't do anything. Can be a good deal for a buyer, not for me, it's a brand new home that can turn out to be a fixer up home because it is empty for over 2 years, never occupied. Most investors in my neighborhood keep their properties maintained very well, some renters don't.
Nobody wants a lot of investors with empty homes, but look at some communities with inventories that are empty and empty lots. It unfortunately the time and it will change in the future, but for this man to blame investors....
Did you buy properties yourself? I wouldn't blame you if you did.

[FIU2000]

Nope, not enough capital for that. Plus I think I'd be a nervous wreck having the money tied up! I just have the house I live in. Hubby thinks I would make a good flipper because I love real estate but I think I lack the confidence for that sort of thing. Oh well

[yukon]

As far as I'm concerned, "investor" is a four-letter word. Housing prices in FL are one of the major reasons I moved to NM.

[stpeteguy]

I know it warms my heart everytime I see a "flipper" have to file bankruptcy.

[spainbrit]

I worked in an office for a broker (no longer with that company) and watched them every day talk up the market up and up. I got very disillusioned with how they practiced real estate, nothing illegal, but selling dreams that others could see were going nowhere. I saw a lot of 'realtors' in that office selling their souls too for commissions they knew they would get whatever, but could see what was about to happen. When one set of units in a condo were under contract, they hiked the prices for the next lot. What happened in the last 2 years major developments now sitting almost empty, though almost complete and there are a lot of owners with a huge problem on their hands because they purchased way past the original pre construction prices, hoping for a flip. They were told flip, flip, flip, all along by the broker and developer. Of course developments are LLC and developer/brokers will lose very little. I think there are a lot of unscrupulous brokers/realtors out there that did very well over the last 4 years. I know a family that moved here from overseas, they purchased their home through a realtor, She then sold this very naive family, only last year, into a very expensive condo development which they could flip and make a lot of money. Of course these were inexperienced in this market, they also purchased a home that was at the height of the market, when that realtor knew or should have known where things were going, and advised them to buy lower or rent, but no, she had to have her commission now. These people are now in a very difficult financial position and guess what - about their home - its now impossible to sell. I feel really bad for these folks. You can say they were stupid, but these were sold to by someone they thought they could trust. Sometimes it's embarrassing to say you are a realtor.

[bentlebee]

Spainbrit, you hit the nail on the head. Wow. That is exactly how I think about these people. Do realtors have to take an oath? These realotrs/brokers should be held accountable for what they have done. People are signing with a realtor to get advise and help to buy their dream home. This is so bad for these people. I agree that if a realtor or investor gets in trouble, I am not feeling sorry for them. In my neighborhood there are realtors who are not making any money anymore. Why, because they have to work and get out there and do something to get a pay check. Before they just listed a property and it would sell easily. When is the first home owner who is in this trouble because of wrong advise, going to sue. Probable never because of all the papers you have to sign, there will be something in between that realtors are covered by a form, which the homeowner didn't understand.

[GENO-777]

Sorry fraud is fraud, any way you look at it. people that got screwed should get together and complain to your officials, if they don't want to help vote them out of office.

[BucFan]

Can't investors who buy/flip houses be blamed for the artificial inflation of home prices that hit the area over the last several years?