According to articles in todays newspaper, the Condo Market is doing a deep six dive. Big time. Apparently flippers were the main culprits in jacking up the values of these oceanfront conversions, And, now that the rodents have abandoned ship, the folks that bought at inflated prices are having to take losses in order to get out from under deals that they can not keep.
Condo Prices went through the roof in '05, some appreciating over $100k in a 6 month period.
The prices are now at pre '04 levels.
For instance;
a 1 bedroom condo in January of '05 went for $209,900
six months later the same 1 bedroom unit sold for $345k
this last June... the price was... (drum-roll ).............. $176 K
OUCH........
Up date:
Since "normal" sales methods are not moving these properties, some owners have resorted to the Auction process.
At auction, the properties are bringing in less money, but, still enough for some to get out from under their obligations.
The lower selling prices are then taken into account when issuing CMAs of other units either in the same buildings or nearby units, making the values of existing units take a harder hit than through the "natural" sales process.
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