Distressed property sales hit upscale condos - Los Angeles Times: "Across Southern California, projects conceived during the housing boom, but completed after the bust, are sitting largely vacant. Developers are desperate to unload these units, but they face some particular challenges. Banks often won't provide mortgages to buyers in buildings that are less than 50% occupied, reducing the pool of eligible purchasers. Converting the projects to rentals means even steeper losses because the cash flow often won't cover a developer's construction costs.
Condo developers are now hosting their own auctions to attract a critical mass of buyers fast. It's a practice that Irvine real estate consultant John Burns projects will become more widespread this year."
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This one comes from Fred Pilot. There is so much bad news in real estate these days that it is hard to reconcile with the claims that the recession either is, or soon will be, in the past.
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