Florida Has a Five-Year Supply of Condo's - Housing Tracker

Quote of the Day

“My guess is we’re at the bottom, if not up a bit. People are not coming out to the sales centers for sport. They’re coming out because they’re looking to buy.” - Alan Lev, president of the Homebuilders Association of Greater Chicago.” (Chicago Sun Times, Apr. 15th)

House Sales and Price Data

Chicago Housing Authority To Hold Lottery For Section 8 Voucher Waiting List. “For more than a decade, poor people couldn't even get their names on a waiting list for federally subsidized rental housing in Chicago. [But] during the next four weeks, low-income families can enter a lottery for one of 40,000 spots on the waiting list. Some of the "winners" could get a voucher by mid-summer, Chicago Housing Authority officials estimate. Others could wait a decade, depending on how fast the city's 35,000 vouchers turn over. For families that are just scraping by… a chance to limit the amount they spend on rent to about 30% of their income is worth grabbing.” (Chicago Tribune, Apr. 17th)

Median Price Keeps Falling. “DataQuick Information Systems: San Diego County's median home price tumbled below the $400,000 mark last month for the first time in nearly five years. The overall median stood at $395,000, down $20,000 from February and off 19.4% from a year earlier… A growing share (36.6%) of the homes that changed hands were foreclosure properties, typically unloaded by the lender at a discount… Prices still are more than double what they were in March 1999. Prices peaked at $517,500 in November 2005 and have retreated 23.7% since… The March sales volume of 2,108 homes was up from February… but down 34.5% from March 2007.” (Sign on San Diego, Apr. 16th)

Fannie Mae Boosts New Orleans Rebuilding through $48.8 Million Investment. “Fannie Mae (FNM) announced that it is boosting the rebuilding effort in New Orleans by investing an additional $48.8 million in housing developments throughout the city. The company also announced that it has invested more than $1 billion in Orleans Parish since Hurricane Katrina struck in 2005. Its total book of business in New Orleans is now larger than it was prior to the storm. Fannie Mae partners with lenders, tax credit fund managers, housing nonprofits, developers and others to invest in rental housing and single family homes throughout New Orleans.” (Originator Times, Apr. 16th)

60 Percent Won’t Buy Home Within Next Two Years. “Associated Press-AOL Money & Finance Poll: [Some] 60% of respondents say they "definitely will not buy" a house within the next two years, [while] 90% of respondents say they have not purchased a home within the past two years (70% of respondents own their homes; 27% rent.) [While] (47%) believe [their] housing market… is overpriced, 24% think that housing prices in their area will drop within the next two years. Ironically, 59% believe it is a good time to buy a home... Finally… 70% of home-owning respondents said they are "not at all worried" about making their mortgage payments during the next six months… Only 11% reported having an ARM in the 2008 poll compared to 22% in 2006.” (Builder Online, Apr. 15th)

Condo Glut. Florida Association of Realtors and market expert Jack McCabe of McCabe Research and Consulting: There’s currently a five-year supply of condo and townhouse units on the market in Dade County… an inventory of more than 24,000 units… Median sales prices for existing condo units in Ft. Lauderdale, Miami, and West Palm Beach/Boca Raton fell 10% from 2006 to 2007 and now range between $171,000-$263,500… More than 19,000 condos are scheduled for completion in Miami-Dade County this year, with 6,400 additional units expected in 2009. McCabe: "There are over 15,000 more condos under construction in Miami-Dade right now than were built and absorbed in 1995-2004, [when] 1,000-2,000 units/year [were absorbed.]" (Builder Online, Apr. 15th)

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Comments

[dectra]

now if someone would just point this out to the developers in my city who keep ripping down perfectly good houses to put up soul destroying monstrosities that sit on the market for years.....

[epam6361]

In every problem there are opportunities. Why not a few articles on how people/the investment community are turning these real estate problems into opportunities? What are some of the strategies investors are using to turn these problems into real opportunities? Are there niche businesses being developed to take advantage of these opportunities?

[Chris1206]

Epam you are right. One person's despair is another person's opportunity. I know in our business (mortgage banking) we are seeing more first time home buyers taking advantage of a product that allows for a 3% down payment and additional money to fix up the home. I think the first time home buyers will be the saviors of the housing industry. When they buy we then have a seller who could be a buyer and the machine gets rolling again.

[jjason]

chris1206... If that "new" first time home buyer then uses a credit card or 2nd mortgage for the 3% down payment and has an appraisal that "fudges" the appraised value...we are, again, in the same mess. WTF the mortgage bankers helped to create this mess...why do you think you can fix it?

[Malkiel]

Somehow I suspect this glut of relatively inexpensive condos in Florida is not such a problem for that market as the overpricing of ordinary housing in California is for that market. That condo surplus is coming to market in an era when a wave of baby-boomers is commencing retirement and at those prices every baby boomer in the northeast could snap one up as a vacation/retirement nest with the equity from their expensive suburban primary homes up north...