Jump to content



Photo

For Greenie: Condo market has collapsed in...


  • Please log in to reply
10 replies to this topic

#1 Rogerdodger

Rogerdodger

    Member

  • TT Member*
  • 26,862 posts

Posted 15 January 2007 - 10:21 PM

I began predicting this after my last trip to Vegas: November Vegas post


Developing story on Drudge tonight.
"PAPER: Condo market in DC, Vegas, Miami and Boston has collapsed... Developing..."

By coincidence, I spoke with a sucessful real estate investor this week who said she was wanting to exchange her rental condo's for apartments because the condo fees were eating her lunch.

Edited by Rogerdodger, 16 January 2007 - 12:45 PM.


#2 greenie

greenie

    Member

  • Traders-Talk ~
  • 3,184 posts

Posted 15 January 2007 - 10:34 PM

Vegas, Phoenix and Miami are the leading markets. Next comes San Diego and Colorado. In silly con valley, the leading market is Sonoma county (chili's home).
It is not the doing that is difficult, but the knowing


It's the illiquidity, stupid !

#3 dcengr

dcengr

    Member

  • Traders-Talk User
  • 13,391 posts

Posted 15 January 2007 - 10:38 PM

Vegas, Phoenix and Miami are the leading markets. Next comes San Diego and Colorado.

In silly con valley, the leading market is Sonoma county (chili's home).


Watch the sales of RVs. If they go up, buy timeshares in trailer parks. Me thinks between now and boomer retirement, RVs and mobile homes are gonna be a great investment.
Qui custodiet ipsos custodes?

#4 briarberry

briarberry

    Member

  • Traders-Talk User
  • 214 posts

Posted 16 January 2007 - 07:14 AM

it sounds like underwater property owners may not get much help from the rental market, I've read that this could be the case in other parts of the USA too...


Washington

Could he rent the condo? Yes, but that option is not appealing, either. Mr. Murphy estimates that the unit could rent for $4,000 a month, far short of the $6,800 a month the condo costs in mortgage interest, maintenance fees, insurance and taxes.


www.nytimes.com

Posted Image

#5 redfoliage2

redfoliage2

    Member

  • Traders-Talk User
  • 17,933 posts

Posted 16 January 2007 - 07:17 AM

I began predicting this after my last trip to Vegas: November Vegas post


Developing story on Drudge tonight.
"PAPER: Condo market in DC, Vegas, Miami and Boston has collapsed... Developing..."

By coincidence, I spoke with a sucessful real estate investor this week who said she was wanting to exchange her rental condo's for apartments because the condo fees were eating her lunch.

My friend bought an investsment condo in Alexandra, Nothern Virginia for 380K in 2005 and the price ran up to 420K shortly after. But now the same unit in the building is selling for 320K. Even at this reduced price, it's hard to find a buyer. :sweatingbullets:

Edited by redfoliage2, 16 January 2007 - 07:18 AM.


#6 OEXCHAOS

OEXCHAOS

    Mark S. Young

  • Admin
  • 21,996 posts

Posted 16 January 2007 - 09:30 AM

Could this have anything to do with the turn over in DC? Or is that supposed to help in the coming months? M

Mark S Young
Wall Street Sentiment
Get a free trial here:
http://wallstreetsen...t.com/trial.htm
You can now follow me on twitter


#7 PorkLoin

PorkLoin

    Member

  • TT Member*
  • 2,194 posts

Posted 16 January 2007 - 09:46 AM

the $6,800 a month the condo costs in mortgage interest, maintenance fees, insurance and taxes

:o :wacko: :giljotiini:

#8 securelstmile

securelstmile

    Member

  • Banned
  • 2,603 posts

Posted 16 January 2007 - 09:52 AM

One thing about the condo market which by the way is always the first to get killed. I don't think this will be an issue in NYC because 911 caused extreme weakness in this market. It has reset this market to be completely in line with stocks. Also, those wallstreet bonuses are being spent on real estate.
The harder I work, the luckier I get.

#9 Rogerdodger

Rogerdodger

    Member

  • TT Member*
  • 26,862 posts

Posted 16 January 2007 - 12:48 PM

If you missed finding the article which was a "developing story" last night, here is the link:
NYTimes Condo article

"Nationally, condominium sales have fallen further than those of single-family properties, 13.6 percent from November 2005 to the same month in 2006; free-standing homes showed a 10.7 percent decline in the same period. Inventories have risen 38.1 percent for condos and 29.6 percent for individual homes, according to the National Association of Realtors. The national median price — half the condos sold for more and half for less — was $224,600 in November, unchanged from November 2005.

But there is no comprehensive, national source of data for new condominiums sales. The Realtors group only measures sales of existing units and the Commerce Department, which tracks sales of new single-family homes, does not collect data on condominiums."





"...the market might have reached its limit for now. As an example, he pointed to a used car lot that seemed to be a vestige of a bygone era.

“The reality is not everything can make way for condos,” Mr. Franco said. “This guy may be doing so much business that it has far more value than what a real estate sale can fetch.”

Edited by Rogerdodger, 16 January 2007 - 12:56 PM.


#10 securelstmile

securelstmile

    Member

  • Banned
  • 2,603 posts

Posted 16 January 2007 - 01:12 PM

If you missed finding the article which was a "developing story" last night, here is the link:
NYTimes Condo article

"Nationally, condominium sales have fallen further than those of single-family properties, 13.6 percent from November 2005 to the same month in 2006; free-standing homes showed a 10.7 percent decline in the same period. Inventories have risen 38.1 percent for condos and 29.6 percent for individual homes, according to the National Association of Realtors. The national median price — half the condos sold for more and half for less — was $224,600 in November, unchanged from November 2005.

But there is no comprehensive, national source of data for new condominiums sales. The Realtors group only measures sales of existing units and the Commerce Department, which tracks sales of new single-family homes, does not collect data on condominiums."





"...the market might have reached its limit for now. As an example, he pointed to a used car lot that seemed to be a vestige of a bygone era.

“The reality is not everything can make way for condos,” Mr. Franco said. “This guy may be doing so much business that it has far more value than what a real estate sale can fetch.”



Condos and co ops are the penny stocks of this sector. It goes co op condo single family house then finally corporate RE.

That is the order in which they fall.

I once was a real estate investor but sold in 2003. It was N.Y. real estate and I hate to look at the gains I let go but hey stocks are more fun than being a landlord. Ah geez all the problems with the winey tennants.

My stocks never yell at me.
The harder I work, the luckier I get.