Woes in Condo Market Build As New Supply Floods Cities - WSJ.com: "The condominium market is about to get worse as many cities brace for a flood of new supply this year -- the result of construction started at the height of the housing boom. More than 4,000 new units will be completed in both Atlanta and Phoenix by the end of the year. Developers in Miami and Fort Lauderdale, Fla., are readying nearly 10,000 total new units in a market already struggling with canyons of unsold condos. San Diego, another hard-hit region, will add 2,500 units, according to estimates provided by Reis Inc., a New York-based real-estate-research firm...Lenders of all sizes have $42 billion of condominium debt on their books, according to Foresight Analytics. In just three months -- between the third and fourth quarters of last year -- the delinquency rate rose to 10% from 5.9%, says the Oakland, Calif., research firm."
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The condominium debt they are speaking of is construction loans to developers to build condos. A 10% delinquency rate? Not good.
1 comment:
I think that it won`t take long the condo market shows a rising tendency again. We can give for an example the Vancouver condos with similar figures. In the beginning of the year there were really popular especially among the young couples as first-home buyers, now the vendibility is a little bit lower again but it`s common phenomenon and hopefully it will rise again. However the significance of the home ownership is apparent and that`s a very reassuring fact.
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