NYT- Crash of the condo market in many big US cities

[TexasLawyer]

January 16, 2007
Buyers Scarce, Many Condos Are for Rent
By VIKAS BAJAJ

WASHINGTON — David Franco’s illuminated model of a proposed 10-story condominium tower dominates a sales center that, in spite of the “Now Selling” banner still fluttering outside, is conspicuously closed for business. “We could have waited it out and kept pushing and pushing,” Mr. Franco said about the decision to abandon plans to sell 180 luxury condominiums with floor-to-ceiling windows offering views of the Washington Monument and Capitol Hill. “But it would have taken significantly longer.”

After six weeks of failing to lure more than a couple of dozen buyers, Mr. Franco and his partner, Jeff Blum, joined the builders of nearly 6,000 condominium units in the Washington metropolitan area who have decided in the last three months to recast their projects as rental apartment buildings.

Since the middle of 2006, the frenzied condominium market here and in several other big cities like Las Vegas, Miami and Boston has collapsed. Once roaring sales have slowed to a trickle, sparse inventory has mushroomed into a glut and soaring prices have flattened out and started falling.

In many cities, banks have significantly scaled back loans to condominium builders. Some have demanded that developers sell half or more of the units in a building before even beginning construction.

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http://www.nytimes.com/2007/01/16/realestate/16rentals.html?ei=5065&en=c551d19d50f5b8bd&ex=1169528400&partner=MYWAY&pagewanted=print

[ThomCat]

1. We need more rental units anyway.

But will these units be affordable even as rentals? :shrug:

There are only so many upper-middle class people in a city. Everyone else needs to find someplace to live too.

[Viva_La_Revolution]

2. screw the poor!

how will that earn fat bank accounts for these needy developers? that's what REALLY counts, ya know?

:sarcasm:

[Trajan]

3. Here comes the Neocon Tax Cut Fairy !

To sprinkle their happy tax cut dust ALLL ovah the castles !

DO you suppose they could use some taxpayer funded subsidies ? ...

THAT should help them feel better ! .... :sarcasm: ....

[ThomCat]

4. Absolutely right! Tax cuts make everything okay!

Even though only rich people will really save any money, in theory poor people get some small benefit it, so that makes it fair and balanced. Yay!
:sarcasm:

[Greyhound]

6. LOL! How can you cut taxes below zero?

Wait, I know, how about a big rebate? Yeah, that'll do it. Guarantee them a profit in spite of the "free market", so they'll be able to build more.

[Viva_La_Revolution]

8. hi hon!

did you get a snow day today?

I did! :bounce: I'm feeling a nap coming on. :)

[Rebellious Republican]

5. Hummer sales hit bottom, now Condo's.....

I guess the richest 2% can't keep this country afloat after all. I wonder what they are going to do now that they have all but wiped out the middle class who used to have some buying power.

:argh:

[TechBear_Seattle]

7. When buyers are scarce, aren't prices supposed to drop?

That is half of the Holy Gospel of the Free Market, after all.

I've been desperately waiting for the condo market to crash hard enough for prices to drop. Maybe, just maybe, I can thus afford a home of my own.