Anywhere Else Besides Florida

The Wall Street Journal reports on Florida. “During the housing boom, Florida attracted hordes of speculators. By some estimates, more than half of all the deposits for Miami condos were put down by people planning to flip them for a profit without living in them, says Jack McCabe, CEO of McCabe Research & Consulting in Deerfield Beach, Fla. But developers built far more condos than demand could absorb. The glutted Miami market now has close to 50,000 units — a record four years’ worth of inventory — for sale or under construction.”

“Faced with such sobering prospects, many buyers no longer want to close on their properties, as they risk steep losses when they try to sell. In some buildings, as many of 30% of condo buyers are turning to the courts in an effort to cancel their contracts. If unsuccessful, they have to either go ahead and close on a unit they no longer want or walk away and lose their deposits.”

“Dora and Umberto Arena, of Hollywood, Fla., are among the thousands of investors who are looking to the courts for relief. When the Arenas bought their deluxe $595,000 condo in Hallandale Beach, developers urged them to move quickly to put down their $120,000 deposit. The planned 283 units at the Ocean Marine Yacht Club in Hallandale Beach sold out in only three weeks when they were offered to the public three years ago.”

http://thehousingbubbleblog.com/?p=4925

Condo market is in the toilet.
Flippers going to court to avoid having to close on units.
Wholesale 'no minimum bid' auctions.