By Steve

July 21, 2006 07:28 PM | Link to this

Let the word eating begin. What a bunch of scam artists.

By rca

July 21, 2006 08:50 PM | Link to this

heres at thought. lets say your parents buy a home 500,000 home with any various of loans and the equity hasnt kicked in and your parents pass away. the price of life insurance isnt cheap and do anyone think that these kids can pay for all of the debt their parents home, including keep a home. we dont even invest in our future anymore. completely selfish and greed. people dont realize that the kids are going to suffer, if you dont invest in them. who is going to be responsible of the floppers properties? poor grandma better check her son’s life insurance. imagine, the life insurance that has to be paid to cover all this mess.
trouble in 07!

By What now???

July 22, 2006 09:49 AM | Link to this

I’m sorry but I do find there to be some humor in this blog.

I often read the Wachovia Economic reports and was somewhat surprised Wachovia was so bullish in South Florida and that they ignored many of the distant, but looming potential problems.

I emailed Mark Vitner about 10 months ago and never got a reply.

If you read Robert Schiller’s “Irrational Exuberance” he actually points to problems being created by overly optimistic analysts. He also indicates that analysts’ forecasts as a whole end up overshooting on the forecast.

By What now???

July 22, 2006 09:54 AM | Link to this

Today’s Wall Street Journal on Page 1 points to another problem in the housing market.

The problem: Inflated Home Appraisals

The article basically talks about people trying to refinance but can’t because they owe more than what the house is worth and that the house price never reached what the house was appraised for. In some cases people with exotic loans are stuck and can’t refinance because they have no equity.

And in some cases, where the owner can’t refinance and are upside down, foreclosure becomes more likely.

The appraisers talk about instances where mortgage brokers have told them the amount they want the house appraised for.

I wonder what if any effect that has had on the local housing market?

By REwatcher

July 22, 2006 11:52 AM | Link to this

The handwriting has been on the wall for at least 6 months, but many have purposely avoided looking. Prices have been slowly dropping, now drops are getting serious. 1 ex.: Description
8th floor spectacular views of the ocean from your own private balconly. Totally renovatedtile set on a diagonalceramic tile baseboardswood cabinets with designer hardwarepull out drawerslazy susancorrian countertopcooking fannewer appliances*tum
ZipRealty Price Track:

Price Reduced: 04/27/06 — $350,000 to $340,000 Price Reduced: 05/04/06 — $340,000 to $339,000 Price Reduced: 06/01/06 — $339,000 to $330,000 Price Reduced: 06/30/06 — $330,000 to $295,000

Days on Market: 127

By PBC OWNER

July 22, 2006 10:46 PM | Link to this

July 29th, Foreclosure sale on over 100 homes being auction off in Ft. Lauderdale. How many of you “buyers” out there who “talk” about having money will buy one of those homes? Here is your chance to buy. Or are you waiting for that $800,000 home going for $100,000? Well let me tell you something, you will never get the chance to put a bid on those type of properties. The lawyers out buy them before you even hear about them.

If certain people who always talking about the “gloom and doom” of property here, why are they still sticking around? “Panic” is the greatest advantage a buyer has over a seller. Look at other cities and their house median prices. We are still the lowest for an area that has beaches & good weather. People have money, look at what they drive, what they wear, and what they do for a living. They are moving here with money, and they will have to pay the price to live here. Or they can go back and sit in another cold winter while we are in the sunshine and looking for seashells along the beach. You either have the money or don’t. Or go pay the landlords mortgage as you rent.

By Steve

July 23, 2006 12:35 AM | Link to this

PBC owner, hold on to your hat. This is only the beginning.

By TH

July 23, 2006 12:22 PM | Link to this

I agree. Some friends of mine are worried about being upside down in their house in a year or two. Why are they worried? They along with many others toook out those lovely HELOC’s. What happens when all the equity is vomited?

By freeloading roommate

July 23, 2006 12:32 PM | Link to this

” What happens when all the equity is vomited?”

They will have to pay all the loot back.

By PBC OWNER

July 23, 2006 07:46 PM | Link to this

RCA - I read a blog that said you were renting in Orlando. Now you are in Coconut Creek? I own - free and clear - don’t have to worry about renting. Have no HELOC loans or any other kind of loan. I do have a life - enjoy the work I do. Never had a mortgage - paid cash for my home. What I do have is sold listings from Propety Appraiser’s Office that shows houses that sold last few months here were $25K more than ones that sold at end of last year. I know my neighbors are waiting out for the fall to list their homes another 50K - 75K more than the homes that just sold here. Real buyers will be here to spend the money, while lookers and dreamers can keep on looking and dreaming. People do have their money made and are coming down here because they want the “lifestyle” and warm weather here. Don’t worry about my family - I have plenty of assets, and insurance and they will all be well provided. The only suckers out there will be the ones that missed out in buying here - waiting for a market crash.

By pbc owner loser

July 23, 2006 11:18 PM | Link to this

A lot of signs Florida killed the goose that lays the golden egg:

‘Home sales are slowing, and inventories are backing up. There are a lot questions on the cost of insurance. There are businesses moving away from Florida, which we’ve never seen before,’ said Vitner. He sees decelerating residential markets in other parts of the state happening faster than originally predicted and expects the same will happen soon in South Florida. Still, costs going down are a way for Florida to regain its competitive advantage.’

‘Right now when you combine the run-up in housing prices with higher interest rates and soaring insurance costs, Florida’s pricing a lot of people out of the market,’ he said. ‘People are saying, `I can’t afford to live here,’ and businesses are saying, ‘I can’t afford to operate here.’ We need to see some slowing.’’

‘There was no mad rush of shoppers Saturday seeking school supplies and children’s clothing on the first day of a tax-free week. Far from it.’

‘Orlando-area districts all grew during the 2005-06 school year, but by much less than expected. Statewide, more than 35,000 students never arrived.’

‘Amid soaring prices for real estate, property taxes and insurance, job boosters in Palm Beach County and the Treasure Coast say the area no longer represents a bargain for employers. Office Depot Inc., one of only two Fortune 500 firms based in Palm Beach County, this month sounded the alarm on rising business costs. The Delray Beach-based retail giant said it’s considering moving to cheaper states in the Southeast.’

‘When W.R. Grace moved here, it was because the cost of doing business was cheaper than in New York,’ Merin said. ‘Office space was cheaper, housing was cheaper, taxes were cheaper — cheaper, cheaper, cheaper.’

By Skier

July 24, 2006 09:56 AM | Link to this

PBC Owner : I alternate between Pompano Beach and either Killington (VT) or Vail in winter months. If you think Boomers just “sit in the cold” while you “look for seashells” you need a good day on the slopes,followed by hot tub, great dinner, Brandy at roaring fireplace. I ski with folks in their 60s and 70s who need a lot more from life than “looking for seashells”. This crop of retirees does not look at Fl the same way previous, less active ones did. Dont depend on them to bail out RE. They are no dopes, well aware of Ins. mess, have better investment and lifestyle options elsewhere.

By PBC OWNER

July 24, 2006 01:26 PM | Link to this

Sorry, was busy making money and just saw RCA ranting that he did throughout the night. Seems RCA could not go to sleep without giving his “gloom & doom” report. And it looks like he woke up thinking more about what i said. I can tell his medicine is somewhere in the mail between here and Canada. Hang on RCA, medication is coming!

RCA, you cannot consider yourself an international “Playboy” if your global travels takes you only from Orlando to Miami when you drive yourself in your KIA.

Skier sounds like he has money, but is older. I rather be in a hot tub with a HOT female 20-30 yr. old, fish for the big one in the Keys and have an evening cook out of what i caught from the sea with that HOT woman that i earlier put suntain oil on the slopes that she has!

No one is asking for a bail out, real estate market will get back into gear in Florida. I know what Colorado is like, many foreclosures out there, and hope your place is not torch by those wildfires up near Vail. Did you come through ok with the floods in the northeast also?

Everyone has different tastes in life, some people can only afford of what they earn over the years. The only Dopes are the ones who did not invest. Those credit card bills really kills the doom & gloomers.

By Skier

July 24, 2006 02:04 PM | Link to this

PBC Owner : glad to hear you are into more than “looking for seashells”. That post made you seem older than me. We also enjoy the Keys except for Key West which is not the Key West we had so many GREAT times in. If you prefer the way it is now, like you said everyone has their own preferences. Had no problems with floods or fires, feel as bad for people who did as I feel for people adversely impacted here by Momma Nature. As far as RE issue, I thought I read in your post something about wealthy wave of boomers coming who will help clear some inventory. Groups I travel with are talking about Fl the way we used to talk about NYC - “Nice place to visit.etc,etc.” Continued good luck with your investments, but don’t let rca push you into market observations you might regret if someone reposts them next year.

By TH

July 24, 2006 05:36 PM | Link to this

I think Palm Beach County needs to be featured on “Open House Party” Everywhere I went this weekend there were open houses with no one at them.

By rca

July 24, 2006 08:32 PM | Link to this

you started this war pbc owner. as prez bushy said, bring them on!

I’ve been saying s**t was gonna hit the fan for a while now. There is too much fraud. I am an honest, ethical, yes very competent appraiser in OC, but I havent gotten a single order in 2 weeks. And its not for lack of marketing skills or experience. I am Certified and have been at it for 6 years. My competition? Brand new appraisers with less than a years experience as licensed appraisers. These guys hire 3-5 trainees and form an appraisal sweat shop. The trainee is clueless, and so is the licensed guy. These are the guys getting all the work right now in Orange County. These are the guys who mostly inflate values by all means, do not disclose property physical or locational issues. These incompetent, sorry excuses for appraisers actually think its their duty to help make the “deal” work. They actually think they are “good” appraisers, because they can “find” the value. They dont know anything about appraising other than how to fill out the form, where to put the value, and where to sign it. These guys were selling ties at Nordies 12-18 months ago. Now they are trusted to independently, ethically, and competently evaluate $900K properties? Yea right. The tide is indeed turning. Word is that in September the feds will issue new rules, not guidance, regarding underwriting standards. Talk about the straw the broke the camels back. Look out below. As for me, I’m certain when the banks get more and more bad loans, they will call the ethical, knowledgable appraisers to help them sort through all the garbage, and the “skippy” appraiser will be back to washing cars for a living, or better yet, he’ll become a real estate agent or mortgage broker. Scumbags.

By rca

July 24, 2006 08:37 PM | Link to this

take that, take that. other bubble busted.

‘It’s Pay-The-Piper Time’ For Appraisal Fraud

The Wall Street Journal has this report on appraisal fraud. “As the housing market cools, Americans are confronting a problem that was easy to ignore during the boom: Inflated appraisals of home values. Critics have long warned that many appraisals are unrealistically high. That’s partly because generous appraisals help loan officers and mortgage brokers, who often choose the appraiser, complete more deals.”

“Prices are leveling off in many places and falling in some. Some homeowners are finding that the market value is below what past appraisals led them to believe.”

“For sellers, that can mean being forced to drop their asking prices. Some people hoping to refinance may be unable to lock in new loan terms. Lenders and mortgage investors, too, could take a hit if it turns out the collateral backing their loans is worth less than expected.”

“Dubious appraisals are a risk for the hundreds of thousands of people who in the past few years have bought homes with little or no down payment, or used almost all of their home equity to finance home improvements or other types of spending. ‘Now it’s pay-the-piper time for people, and they’re finding out they don’t have the value in the house they thought they had,’ says John Taylor, president of a Washington-based nonprofit.”

“In October, when Melinda and Steve Welch refinanced the loan on their four-bedroom home in Centreville, Va., the property was appraised at $682,000. Later they cut the price to $595,000, and recently accepted a bid around that level.”

“Eric Randle, an appraiser in the Los Angeles area, says he frequently receives faxes from loan officers asking whether he could appraise a specified home at a certain level. The implication is that an assignment will be forthcoming only if he’s willing to hit the desired number. Mr. Randle says he declines to work on those terms.”

“One of Mr. Randle’s appraiser friends recently received a fax from a mortgage loan officer in Bakersfield, Calif. The scrawled fax message listed an address in Los Angeles and said, ‘I need 2 get to 750K for this Appraisal. If not please provide a value range or call me.’”

“Consumers often play along with dubious appraisals. Danny Wiley, an appraiser in Nashville, in May was asked by a lender to appraise a condo in Spring Hill, Tenn. The buyer had offered to pay $139,000, but the contract required the seller to pay $10,000 toward the buyer’s closing costs. In effect, Mr. Wiley says, the price had been inflated by $10,000 to allow the seller to provide money to help the buyer cover closing costs.”

“Mr. Wiley estimated the value at $129,000. That should have killed the deal. But Mr. Wiley says the sale later went through, apparently after the lender found another appraiser willing to value the condo at $139,000.”

“Some lenders use appraisal-management companies to create a wall between the appraiser and the loan officers. But appraisers say these companies often choose the cheapest and fastest appraiser rather than the most qualified. ‘You get someone who is not intimately familiar with the local marketplace because they are willing to do it for less,’ says Jeffrey Jackson, chairman of the appraisal firm Mitchell, Maxwell & Jackson in New York.”

“Lenders often play down the issue. Tim Doyle, an official of the Mortgage Bankers Association, says he sees no ‘broad’ problem with inflated appraisals, outside of criminal rings. Even though mortgage lenders typically sell loans to investors shortly after making them, investors can force the lenders to buy back a loan if it goes into default and the appraisal was fraudulent, he says.”

“Even when all parties want an honest appraisal, that can be hard to achieve. In making their value estimates, appraisers rely heavily on prices paid recently for similar homes nearby. But those prices may be misleading. For instance, builders of new homes sometimes include in the sale prices such items as landscaping or contributions toward loan fees or settlement costs.So the resulting inflated price can become a misleading ‘comp’ for nearby homes.”

By TH

July 24, 2006 09:06 PM | Link to this

http://www.palmbeachpost.com/business/content/business/epaper/2006/07/24/a1bzrawls0724.html

By Blog Afficionado

July 25, 2006 03:45 AM | Link to this

LOL RCA! The old man PBC Owner is obsessed with you. He owns a tract house and he thinks he’s rich. Look old man, a tract house won’t get you a 20 year old hottie! Keep dreaming about 30% gains and keep talking crap about people with a different opinion than yours. You’re just pissed off that your ordinary, cookie cutter house is losing value, face it! You were just lucky…while it lasted.

By RHM

July 25, 2006 08:20 AM | Link to this

I love it it’s all about affordability and lifestyle. Go the the beach during the weekday, access is very limited mostly through county parks and public beaches, and you hardly see anyone. Same for the boaters. Most people are working, in gridlock or walled in their gated community. The so called life-style of South Florida and the keys are mostly for Jimmy Buffet wannabes. How many people, surf, dive, fish, boat, swim, have salt water aquariums, go to the islands? The beaches here are second rate compared with Costa Rica the new hot spot for the runaway dysfunctional.Also, I got a super seahell colletion. I donn’t think Palm Beach County is a tropical paradise with 1.5 million people cramed like lemmings into tiny metal boxes. Really, any place in the U.S. is uptight especially after 911.

By So Many Angry People

July 25, 2006 09:43 AM | Link to this

I see many angry, bitter, jealous people on this blog. I think people like steve, blog affcionado and rca who blog negative stuff, have nothing at all. I read it from what they say, and so do others.

There are people with money, a home, and have a nice family that have a life. You guys need to get out and stop proving to others how big your p** is. The more you talk, the more of a loser you come out to be. So what if people have more than the next person. Get over with it.

Hey skier & pbc, invite me over for a ski or a fishing trip. I think you guys know how to party. Me and my female friends, we are all in our late 20’s early 30’s and single.

By June numbers

July 25, 2006 11:44 AM | Link to this

June 2006 numbers were reported about an hour ago.

In Palm Beach County, units sold fell to 947 in June 2006 from 1,551 in June 2005 and 982 in May 2006.

Median price for June 2006 was $405,500 versus $406,800 in June 2005, but May 2006 was $391,000.

I’m a bit surprised by the Median price having gone up relative to May 2006. Still, though, volumes of houses sold are through the floor.

Through the first 6 months of the year there were 4,955 single family homes sold in PBC. You’d have to go back to 1997 to see volume that low in the first 6 months of the year. And on top of it all, record inventories.

By rca

July 25, 2006 12:02 PM | Link to this

From David Lereah,

Sales of existing homes fell 1.3% in June to a seasonally adjusted annualized rate of 6.62 million, the National Association of Realtors said Tuesday. Economists were expecting a decline to 6.58 million, according to a survey conducted by MarketWatch. See Economic Calendar. The report shows a continued weakening in the housing market, with inventories up sharply while prices are softening. The inventory of unsold homes rose to a record 3.725 million, a 6.8 month supply at the June sales rate, the highest since July 1997. The median price has risen 0.9% in the past year to $231,000. It’s the weakest price growth in 10 years. Sales of existing homes are down 8.9% in the past year. “I hope we are hitting bottom,” said David Lereah, chief economist for the private real estate trade group, which is predicting sales of about 6.60 million this year.

By rca

July 25, 2006 04:22 PM | Link to this

Realtors: Home sales now a ‘buyer’s market’ Sales fell for third straight month in June; nearly flat prices make double-digit gains seem like a distant memory. By Chris Isidore, CNNMoney.com senior writer July 25 2006: 3:27 PM EDT NEW YORK (CNNMoney.com) — It’s official - even the nation’s leading group of real estate agents now says it’s a buyer’s market in housing, as a soaring supply of homes for sale means nearly flat prices and longer waits for sellers.

The news came in the National Association of Realtors’ report for June, which showed that home sales fell to the slowest pace since January while price gains were the smallest in over a decade.

The industry group said sales of existing homes fell to an annual rate of 6.62 million in June, compared with a 6.71 million pace in May. Economists surveyed by Briefing.com had forecast sales would slow to a 6.60 million rate.

June was the third straight month of declines, leaving sales 9 percent below year-ago levels, the group said. Moreover, the weakness was widespread, with sales falling in each of the four regions of the country.

The median home price did edge up to $231,000 from $229,000 in May.

But that marked only a 0.9 percent increase from a year earlier - the smallest year-over-year gain in home prices since May 1995.

As recently as October, prices had jumped a record 16.8 percent from a year earlier due to tight supplies and bidding wars among buyers.

“The change in price performance is directly tied to housing inventories - a year ago we had a lean supply of homes and a seller’s market, with monthly home sales at an all-time record high,” David Lereah, chief economist for the group, said in a statement.

“Sellers have recognized that they need to be more competitive in their pricing given the rise in housing inventories,” he added.

The inventory of homes on the market is now at 3.7 million, up a whopping 39 percent from a year ago, or a 6.8-month supply at the current sales pace, up from a 4.4-month supply in June 2005.

The Realtors statement said the market has shifted to a “buyer’s market,” which it said is good news for those shopping for a home even if it posed a problem for those looking to sell.

“People who were discouraged by the bidding wars that were so common over the last few years are finding more choices now,” said Thomas Stevens, a Realtor from Vienna, Va., who is president of the group.

Regionally, existing home sales in the Northeast saw the biggest decline, followed by the South.

Sales in the South fell 2.3 percent from May to a annual pace of 2.57 million, which was 5.5 percent below the rate a year earlier. The median price slipped to $191,000, down 0.5 percent from a year earlier.

Northeast sales slid 3.5 percent from the prior month and were 9.8 percent below a year ago. The median price in the Northeast was $298,000, up 7.2 percent from June 2005.

Sales in the Midwest were unchanged from a month earlier and down 6.2 percent from a year ago. The median price in the Midwest was $175,000, 1.7 percent below June 2005.

Existing-home sales in the West were also unchanged from May but sank 17.1 from June 2005. The median price in the West was $342,000, the same as a year ago.

By Blog Afficionado

July 25, 2006 06:09 PM | Link to this

“So Many Angry People” = PBC Owner. His misuse of the word “blog” keeps giving him away! LOL! You can’t invite yourself over, you fool!

By FL Renaissance

July 25, 2006 06:31 PM | Link to this

There are movers and shakers…there are doers and wannabe’s. Many angry people on this blog couldn’t rub two quarters together, much less buy or invest intelligently!

By REwatcher

July 25, 2006 07:28 PM | Link to this

Meanwhile back at the market… It does appear sellers now have to decide on laying out carrying expenses for some months till maybe buyers who can afford taxes, insurance,mtg, etc appear and get mkt going again or bite that very distasteful bullet and drop price to what current buyers can carry. Tough call for some, LOT of Ego’s threatened by lower than bragged about prices.

By PBC Owner's Mom

July 25, 2006 07:40 PM | Link to this

Please stop picking on my son. He is a nice boy but sometimes gets a little excited. Everything he said is true. He doesn’t have a mortgage because he stills lives at home with me. And I am so proud of him because he has no debt. He spends just his allowance. And the many assets he has, his Star Wars figurine collection and his baseball cards will be worth thousands one day. So you PBC Owner haters go away and leave my boy alone.

Signed,

PBC Owner’s Mom

By RCA

July 25, 2006 08:30 PM | Link to this

renaissance, you picked a bad day to talk s*

THE BUBBLE IS OVER =)

“In Palm Beach County, the median price - half cost more and half cost less - of an existing single-family home fell to $405,500 from $406,800 in the same month a year ago, the report stated.”

And there you have it folks. We have the first YOY DECLINE in price.

Let the panic begin.

By PBC OWNER

July 25, 2006 08:44 PM | Link to this

Sorry B.F., that was not me - S.M.A.P. I did see you have to go real low now on doing mother story stuff. You are not a real man, but you will be somebody’s B** in prison in the near future. I will be the one waving goodbye to you as they take you away in court.

Anyway, as you all can tell, the median price shot up in Palm Beach County. There is your fact RCA.

As FL. Renaissance puts it, you are all losers! Property owners will be the ones laughing to the bank in P.B.C…..ha ha ha.

C.B. + RCA = FOOLS

By PBG wannabe from Iowa

July 25, 2006 08:47 PM | Link to this

you folks are passionate if nothing else. You should revel in your good fortune in living in PBC. I love the PBG/Juno area and hope to move there one day. But, in summary, is it safe to say to stay away from Lennar homes?

By rca

July 25, 2006 09:00 PM | Link to this

WE GO YEAR TO YEAR!

AND, SALES HAVE CONTINUED TO SLIDE.

I TOLD YOU A FEW WEEKS AGO THAT PRICES WILL GO UP WITH THE LACK OF SALES, BECAUSE THE ONLY PEOPLE THAT ARE BUYING ARE ONES THAT CAN AFFORD TO BUY.

TELL ME HOW MUCH INSURANCE YOU HAVE PAID YEAR TO YEAR. LOOKS LIKE YOU ARE HOLDING A BAG OF S*

SALES ARE DOWN 39% FROM LAST YEAR. IT WILL TAKE AT LEST THE END OF THE YEAR TO SEE PRICES SLIDE.

AND SOME PREDICT THAT IT WILL TAKE THROUGH 2007. DONT WORRY PBC, AS LONG AS NO ONE BUYS, AND ONE PERSON BUYS AT 1,000,000, THEN THE MEDIAN IS 1,000,000. ONCE AGAIN YOU CANT READ OR WRITE, ALL DO IS BEG, AND BEG AND BEG. YOU MIGHT BE THE GUY IN THE MONKEY SUIT BEGGING FOR US TO BUY. CITIZENS, STATE FARM AND ALL STATE WILL TAKE YOU TO THE BANK WHEN YOU RATES GO UP 100% THIS YEAR. YOU ARE BEYOND A SUCKER, YOU ARE THE LOSER AND EVERY TIME THE POST PUBLISH MORE BAD NEWS OR I POST YOU SOME REAL INFORMATION, IT ONLY GETS UNDER YOUR SKIN. THAT WHAT I LIKE ABOUT YOU. I KEEP POSTING AND YOU KEEP HOLDING THE DIRT BAG. I ASK YOU ABOUT FACTS AND REAL ISSUES AND YOU JUST HATE TO SEE THAT ONE DAY YOU OR YOUR FAMILY WILL SELL EVERYTHING YOU WORK FOR. THAT IS CALLED THE CIRCLE OF LIFE. THE DIFFERENCE BETWEEN THE GREEDY AND HUMBLE. NEXT THING YOU WILL TELL ME IS THAT YOU ARE AN ELEPHANT. ELEPHANTS ARE LARGE WITH LITTLE BRAINS.

YOU KNOW WHAT AN ELEPHANT IS RIGHT?

ONLY A FOOL WILL PAY FOR A 1/1 FOR 200,000 AND THEN INSURANCE, HOA OR CONDO FEES AND TAXES TODAY. BUT I AM NOT THE ONE, I PAID OFF MY PLACE AND ONLY SEE 5% INCREASE OF MY INSURANCE. I EVEN CASHED OUT AN INSURANCE POLICY, BECAUSE I COULD GET A BETTER DEAL LATER.

I TOLD YOU I AM NOT NICE, BUT I WILL JUST KEEP GIVING YOU MORE.

PBC TALK TO ME AGAIN AT THE END OF THE YEAR. TALK TO ME WHEN I COME BACK DOWN HERE AND BUY A HOUSE AT 50% OFF IN WEST BOCA. I PUT MONEY ON THAT (THE END OF 2007.

Five Stages of Grief

The Palm Beach Post is talking about the five stages of grief.

Thomas Lawler, a Virginia-based housing consultant, thinks South Florida's real estate market has entered what the respected "death-and-dying" psychiatrist Elisabeth Kubler-Ross called the first of five stages of grief.

   1. "Denial in a previously hot real estate market occurs when a home listed at a high price doesn't sell quickly, even though just a few months ago houses sold in just a few weeks," Lawler says in his July 19 Lawler Economic & Housing Consulting newsletter. "The home buyer says, 'This is weird, but I'm sure it's just a glitch,' and does not alter his or her asking price.
   2. "Anger occurs when, after a few months pass, the house still hasn't sold, and little interest has been shown," he continues.
   3. "Bargaining begins as the home buyer starts to offer a few incentives, agrees to more open houses, starts to fix up the house to make it show better, and actually agrees to lower the listing price a bit.
   4. "Depression starts to set in when the house has been on the market for about four months or so, and the seller realizes that his or her net worth simply isn't going to be as high as he or she thought.
   5. "Finally, acceptance occurs when the seller realizes that homes prices have fallen; that he or she will not get peak price of what is now six months or more ago; and that if he or she wants to sell the home, the asking price needs to be adjusted downward considerably."

This process takes time, Lawler says, which is why home prices in hot markets that cool fast don't immediately start falling.

I agree it takes time. Far more time than the four months that Lawler is suggesting it takes for depression to set in. Depression does not set in after 4 months (except perhaps for flippers on the fringes). I think six years is more like it. In Japan it took 18 years. Why can’t it take four, six, or even ten years here? It can and it likely will.

For the most part, we are probably still in the denial phase after 6 months to a year. If each phase lasts six to eight months we are in for a three year collapse. Given that this is basically a national bubble, and the biggest bubble ever, it would seem to me that 5-7 years minimum is more like it. Some people have not even hit the denial stage yet. Those people are still trying to flip, buy foreclosures, or buy the dip.

It’s a long way down from here. That is in terms of time, price, and emotion. For most recent real estate gurus it will not be a pretty ride. Nor will it be a pretty ride for those trying to make a living off of ever decreasing sales.

By PBC THE LOSER

July 25, 2006 09:20 PM | Link to this

PBC THE LOSER

HERES TO YOU LOSER

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Ray Higdon - 239-248-2182 Investor/Wholesaler Wholesale Real Estate in Southwest Florida at

http://www.rlhholdingsllc.com

By Steve

July 25, 2006 09:52 PM | Link to this

I’m not negative, I’m trying to save a million dollars so I can buy a townhouse in Lake Worth one day. lol

By NUMBERCRUNCHER

July 25, 2006 09:58 PM | Link to this

Some of you do not understand the numbers that came out today. Sure, the median price is about $1300 less than last year at this time. You can’t always have a market in ANYTHING that goes up double digits every year. Somewhere - the market makes a correction or stablizes. Again, there is definitely a difference between the condo market and the single family home market. Sales are down - yes, less units were sold. Less units were sold because all those investors and flippers are not buying now - but are the ones trying to sell now because of the interest only loans, adjustable loans, or HELOC loans. That is why there is an increase in the inventory available. What those numbers show - in the dead of summer - is that owners are holding their price. They are not dropping their price just so some lazy poor blogger who spends every waking moment to write on these blogs can buy property. Why don’t you go out and get a job - get a second job - or better yet - get a third job to make some money so you can buy property someday. Stop wasting your time writing and complaining about the prices or where they are going. I agree with Renaissance - you all don’t have two pennies to rub together - because you are too busy BS -ing when you could be working and making money. Some people are self made millionaires - because they worked hard all their life and were resourceful in making a living. That is what it takes “working hard” + “saving money” + “sacrifice” = Happy Property Owner. That is such an easy equation to remember. So if the median price is about $406K now - can you imagine where the prices will be after October 1st - especially if there are no hurricanes this year??? I say single family homes will be asking $50K - 75K more this October than they were last October. Homeowners have egos - they will not sell less than what last property sold for in their area. What that means is that the $400K plus price as the median price is here to stay and to start getting used to it. Sellers will hold their price. Because wherever a seller will go to - they will have to pay same price or more than likely even more than what they sold for here in Florida.

By PBC Owner's Mom

July 25, 2006 10:10 PM | Link to this

Is that how you talk to your elder’s? PBC NOW STOP WASTING YOUR TIME POSTING ON THIS BLOG AND TAKE OUT THE TRASH LIKE YOUR FATHER TOLD YOU TOO. Geez, I raised a dumbass as a son, no wonder he doesn’t have a girlfriend.

By TH

July 25, 2006 10:12 PM | Link to this

Numbercruncher—you make practically no sense. Where is your evidence? I think several high end houses closed “skewing” the median upward. Its not the hurricanes, its the insurance issue. Till that is resolved contracts will still be cancelled.

By T

July 25, 2006 10:20 PM | Link to this

http://www.marketwatch.com/news/story/Story.aspx?guid=%7B86EBF65E%2D67C0%2D4D68%2D97AA%2D9D76B47CEB18%7D&siteid=

By PBC OWNER

July 25, 2006 10:23 PM | Link to this

To PBC OWNER MOM

Hey mom, please come home from the bar, you are spending my lunch money on those drunken realtors.

Drive safely, i don’t want to see your a*s locked up again for DUI.

By Real Numbers

July 25, 2006 11:32 PM | Link to this

For the most part, I’ll agree with what number cruncher said. I do, however, disagree about median prices heading higher.

Yes, buyers are waiting for the deals and sellers are being reluctant to lower their prices. However, in this standoff, it will be a question of who gives up first, the buyers or sellers. I think the investors that are trying to get out will be the first to budge in an effort to minimize any hemorraging cash outflows. Only time will tell, but it’ll be interesting case study.

By Blog Afficionado

July 25, 2006 11:37 PM | Link to this

PBC Owner/Number Cruncher,

It doesn’t matter how much pride a homeowner has, the market dictates the price of the house. If an owner HAS to sell, the owner will sell the house for the price that the market will bear, not what he WANTS. When the sellers sell cheaper (and they certainly are starting to) you’ll see comps much lower. There is no reason for houses to appreciate right now in PBC. Maybe next cycle.

Look how fast the market turned around. Down housing markets don’t last less than year, they go on for years. You haven’t seen anything yet. Say hello to the 200’s again for that West Palm tract house of yours! Tract homes = as good as condo. LOL!

By cmgr

July 26, 2006 08:01 AM | Link to this

No crash, zero storms, and median is yet again back over $400k for the fourth straight time in five years. Do the math.

By GB

July 26, 2006 08:23 AM | Link to this

Poor Linda Rawls, she has to have her bubble and eat it too! Too bad the PBC median price jacked itself back up into California territory again. CMGR is dead on: if we don’t get any major hurricanes down here this year the metric of the “wait-and-see” philosophy starts to lose water fast. And with Fall season right around the corner we could actually start seeing some “real” appreciation before ‘07. With interest rates stabilized now, as well as the rest of the civilized world in total chaos, I really wouldn’t be surprised to see this median hit $500k. Not at all.

By cmgr

July 26, 2006 08:32 AM | Link to this

The wealthy will flock to PBC as they always have. And a vast internetworked economic infrstructure to support their luxury-resort lifestyles will remain beneath them. Palm Beach drives this market, and as any Palm Beach realtor will tell you: Palm Beach has never looked so good. Prices are skyrocketing on that island with absolutely no end in sight. Once Trump closes on his $125M property everything will change and $100M transactions will become the norm on the big water. That tsunami of money will inevitably trickle down and suck the median price up with it as sister luxury markets such as Wellington, Boca, Delray, PBG, etc… all feel the aftershocks. Don’t even consider a crash in this market: it’s just not even possible. Don’t be fooled. Palm Beach has been in a boom for one hundred years straight and we live in Palm Beach County. Sometimes I think we forget that. If you need a reminder of what’s really going on in this county drive the island. You will be amazed beyond your wildest dreams. Get your heads out of the sand and get ready.

By GB

July 26, 2006 08:36 AM | Link to this

Right on. And every condo built, and ever condo on the books, and every condo in every gleam of every developer’s eye who’s still in diapers will be filled with south american and european millionaires.

You think they won’t sell those high rises in WP? What are you gonna say when they tear them down to build higher in ten years.

Don’t laugh. You will see it.

And the median now is only a fraction of where it’s heading.

Don’t laugh. You will see it.

By cole

July 26, 2006 08:41 AM | Link to this

the market is taking a beating, right now. it is all compared to a red hot run. the prices, insurance, taxes, etc are all expensive based on who is looking at it. if you look at what all things in your life cost, what you get hear in PBC is still a great deal, if you are moving from a real place.

in a place like boston, you would pay $500 a square foot for an ok place, in an ok part of town. your car insurance on a $70k car would be about $4000 a year with a clean record. you would pay an additional $3600 a year to park it. you would pay a state income tax of 5%.

my point is that is boston, forget nyc, sf, or la.

pbc will recover i guess the 1000 people a day will live in a car?

the correction is here, and the flippers have flopped. the folks that should be concerned are the ones who have to sell, financed 90 to 100% on some neg am loan, with no money in reserve. i also think a huge difference between single family and condo’s. especially single family homes in good locations. no more land exsists in that a developer can deliver 1000 homes at $200 a square foot. but real end users will purchase, and pbc will grow, it may take a year or two to work out, but if you do not have to sell, and you are living in the house, what is the concern?

By Domath

July 26, 2006 08:50 AM | Link to this

500k purchase yearly costs: Taxes= 11,700 Ins= ? 300k mtg 22,000 Mtc= ? Utilities ?

Fill in your own numbers, still get a number too annoying for buyers who can afford it, but resent out of whack tax structure and non-stop ins. costs. Put your intelligent self in a buyers shoes, do the numbers, consider other uses/investments available for your money and find answer to why inventories will continue to climb.

By homeowner

July 26, 2006 09:22 AM | Link to this

face it folks, there are buyers and sellers. with the median price over $400k, the rush will be on to buy before buyers see median price at $500k. you either have the money or don’t.

By rca

July 26, 2006 09:40 AM | Link to this

Broward officials, residents seek solutions to soaring property tax rates

By Anthony Man Political Writer

July 26, 2006

Fort Lauderdale — With emotions ranging from anger to desperation, property owners pleaded with politicians Tuesday to do something about soaring property taxes.

Democrats and Republicans alike responded with concern for the cries for tax relief, but didn’t offer much hope for quick fixes. The most-discussed reform can’t get on the statewide ballot until 2008.

“We have a federal government, a state government, and a county government that are spending like drunken sailors,” J. Dean Abbott of Oakland Park said to the applause of 300 people at a town hall meeting on property taxes. “When the tax base has exploded, as it has in this county, and we are spending every dime of it, something is wrong.”

Most local governments have taken advantage of five years of soaring property values to collect greater amounts of tax.

With the real estate industry concerned that high taxes and high insurance premiums are becoming a toxic mix for sales, Property Appraiser Lori Parrish and the Realtor Association of Greater Fort Lauderdale partnered on the gathering at the Broward County Main Library in Fort Lauderdale.

“I don’t know what happened here since 2001. Just because [real estate] prices have gone up, should the taxes have tripled?” said Henry Fera, a Fort Lauderdale real estate broker. “I don’t know what you are doing, but you’re not doing it right.”

And when one of the politicians on the stage, state Rep. Ellyn Bogdanoff, R-Fort Lauderdale, wondered aloud when taxes would become so high that people no longer could afford to buy, some in the largely Realtor audience shouted, “We’re there.”

“We need tax reform and we need tax relief,” said Dorine Longhini, president of the Realtor association. “We are not going to back down on this issue. We are going to keep the pressure on.”

Most of the 13 politicians and business representatives on the panel said people in the audience would have to work harder to get the lower taxes they want.

“Each one of you has to use all of your political clout,” Parrish said.

“The budgets are out of control. It needs to be stopped,” she said. “It’s like my mother always said, `What did you do with the money I already gave you?’”

Christopher Pollock, president and chief executive of the Greater Fort Lauderdale Chamber of Commerce, advised hammering elected officials when local governments deliberate over taxes and spending. Those meetings have started at city halls and government centers throughout the county and will continue through September.

“Only one or two people show up. Shame on you,” he told the audience. “We have a very apathetic electorate here.”

Hollywood City Commissioner Keith Wasserstrom, speaking from the audience, said typically, only the regular handful of gadflies show up at budget time.

By contrast, when the City Commission considers employee benefits, city workers holding their children show up and pack the room, he said.

“We need you to come out. We really need your pressure,” he said.

Those at the meeting also focused on the Save Our Homes amendment to the state constitution, which limits the increase in property value subject to taxation to 3 percent a year.

State Sen. Steve Geller, D-Hallandale Beach, said Save Our Homes had a perverse side effect. The break on taxes applies only to residential homeowners, who are the most frequent voters, Geller said. Because they’re not getting hit with sharply higher taxes, he said they’re not motivated to turn out en masse to press for spending curbs.

Meanwhile, first-time buyers and business property owners get hammered with higher bills.

Almost all the panelists said they favored expanding the Save Our Homes amendment by adding a portability feature.

The savings applies as long as the owner stays in the same home, and resets when the residence is sold.

Someone who buys a home today may pay double or triple the taxes paid by the owner of an identical home next door who bought 10 years ago.

County Commissioner Jim Scott said the prospect of sharply higher tax bills, even when moving into smaller homes, makes people “prisoners in their own homes here in South Florida.”

Portability would allow homeowners to take their Save Our Homes tax benefit when they move into another house.

John Faiella, a Coral Springs Realtor, said portability is a critical issue.

“Right now we are in a musical chair syndrome, where everyone is sitting down because buyers can’t buy. People can’t move,” he said.

By REspec

July 26, 2006 09:59 AM | Link to this

Mkt trends and cost pressures on SOFL owners indicate inventories will continue to grow. As example: post on Ins Blog from owner : “My homeowners insurance is currently $3600 based upon the what State Farm has published it will increase as of Nov 1st to $6224.00. this doesn’t include the fact that FPL, water, gas, taxes, phone, cable, etc have all increase but yet I have not have an increase in pay in 2 years. I make make a good decent salary but it can only stretch so far. I took from savings to cover last years increase. Now what am I suppposed to do - I can that again but what happens if I have an emergency. Well that funds gone as I spent it all on homeowners policy.

One more increase and I will be forced to seell my home” Very high end mkt as usual will be OK, mid mkt is in for VERY big problems as inventory will climb putting downward pressure on prices. Sellers will hold out until pain of Ins and Tax outlays, combined with other rising expenses(cars,gasoline,etc) forces adjusting price to new mkt realities.

By Bubba

July 26, 2006 10:11 AM | Link to this

RCA: Please just post a link to the article, it makes reading these things much easier.

By ?

July 26, 2006 10:23 AM | Link to this

AM I THE ONLY ONE WHO THINKS THERE IS SOMETHING WRONG WITH RCA?

PLEASE RCA, SEEK HELP. IT MIGHT NOT BE TO LATE.

WHAT A FRUITCAKE!

By Rushtobuy?

July 26, 2006 10:33 AM | Link to this

Most hilarious posting in a while: “the rush will be on to buy before buyers see median price at $500k. you either have the money or don’t.” Thanks for a good laugh. Any suggestions for crowd control of onslaught of buyers ? Considering current drawbacks of buying here at this time, crowds of people willing to buy would be potentially very dangerous to themselves and others. Thanks again for terific laugh.

By homeowner

July 26, 2006 11:21 AM | Link to this

when i read the article today about median home prices jumping up that much, buyers will start saying to themselves, “it is now or never.” as someone said earlier, you need more than two coins to rub together to buy in south florida. people can wait it out to get their selling price. have you looked how much it cost in other areas? florida is not cheap anymore! i will be the one laughing when i plan to sell, and your type will be crying. boo hoo

By Rushtobuy?

July 26, 2006 11:38 AM | Link to this

I am a homeowner, that is why I know the true costs of owning here. While I feel very fortunate not to need to sell, I cannot in good conscience recommend buying at this time to friends/family. If you feel differently, that is fine. My opinion is based on seeing my costs escalate and homes for sale near me (550k and up) not getting offers, much less sell. As I said, I am not selling anytime soon (hopefully), but do not need money bad enough to try hyping values. Old fashioned belief in “The Truth shall set ye free” also means dealing fairly with all others.

By Rush to Buy

July 26, 2006 12:34 PM | Link to this

I’m in a rush to buy. With 18 months of inventory on the market, there’s a definite shortage of housing. I need to get in now before median prices hit 500k.

With only 18 months of housing available, you better get in now before it disappears.

C’mon now, seriously????

BTW: Chief Economist for National Association of Realtors has been quoted saying a normal market is 6 months worth of inventory.

By Seller

July 26, 2006 12:53 PM | Link to this

To the “homeowner” who plans on laughing when he decides to sell : Believe me it ain’t that funny once you hit this mkt. I thought I would be done and gone two months ago. Still trying to find some of those thousands of buyers charging into FL.

By So long SOFL

July 26, 2006 02:26 PM | Link to this

All you people who can afford a ‘median’ priced home here, good for you. I hope you find someone to teach your kids, serve you lunch and police your streets. I know, you expect these people to buy a tiny little condo where they will live happily raising their kids without a yard. Just so they can live here and teach your children and serve you. Well if that’s all they can afford then too bad for them, right? Wrong! I’m not raising my children in an apartment or a condo. I’m getting out of here quick, and don’t think I’m the only one. There are a lot of people leaving this area for better job opportunities and better cost of living elsewhere. I moved here a couple years ago when it was a semi-affordable place to live, but no, I never bought. I thought prices were high back then! Now thankfully, I’m getting out. Not a moment too soon. I’ve never seen so much greed in my life. Get over it people, you’re not going to get the big sale your neighbor got last year. The party’s over. Good luck to everyone left behind. Hope you all can find a solution for middle class family housing before they all move elsewhere. By the way, just bought a 3 bedroom 2.5 bath house with a 2 car garage on 2 acres of land for $165,000. And no, I’m not telling you where. I don’t want you investors and flippers in my town.

By Bye Bye

July 26, 2006 03:13 PM | Link to this

There goes another disgruntle low wage service employee leaving the state. There is always three new residents to take your place and your job. It takes money to live here, no doubt about that.

Good luck, you won’t be missed.

By cole

July 26, 2006 03:31 PM | Link to this

first of all, the market will come back. 6 month inventory is norm, so we are 2 to 3 times that. it will take some time. pbc is for the rich, so move if you can not afford it. if you have been living here for over 5 years, and owned a home, and do not like it anymore you should be able to cash out your 100k house that even in this market would sell for 500k.

i can not agree with the other people on this, that compare pbc to nc, ga or any other place that does not have what pbc has to offer.

those underdeveloped places, with no dining, shopping, entertainment and lifestyle do not, will not compare to pbc.

go to buford, nc please. find a good dinner, go enjoy a good show, oh ya see a good band, and find a place that is worth boating to.

the olive garden is not fine dinning. things change and times change, but i can tell you, anywhere you can buy a house for 165k is not worth living.

middle class in boston, ny, and la drive an hour commute to and from work in traffic. pbc has what those places have and more to offer. that’s why those people move here. it will get better, builders will stop building, condo projects will get cancelled and inventories will return. some huge disaster and the end of the world is hype. things slowed, from 110 mph to 60mph, still pretty fast, just does not seem it after the run we had.

By dg

July 26, 2006 03:50 PM | Link to this

affordable is in the eye of the ….

me and my wife moved to florida 2 years ago. we both work, and i have not made as much as i did up north, but boy did i get a heck of a lot more house in a much better place. we sold our house up north, made money. bought and sold one down here, made money, and purchased another a year ago. so i over paid on the last one.

but it is a great place and i do not have to sell. we make about 125k with some bonuses each year. the cost is less than the home we had outside ny, the taxes about the same, the insurance is covered by the lack of income tax, car insurance, heating costs, electric costs, etc… you save sometimes cost you more other times. we have a 2 year old 3200sq home that cost what a crappy 2/2 would have cost at home, and the place looks like a resort.

as for the service workers, i guess i miss the point, how do they afford anything anywhere? if you do not like it move, i am sure there are teachers, fire fighters, police, emt’s, etc from other metro areas who would love your job.

i am sure the county will address the problem when they run an ad for more people and no one applies.

do you think the police in aspen, beverly hills, and nyc live in aspen, beverly hills and the upper east side. get real.

By Seller

July 26, 2006 03:54 PM | Link to this

“you should be able to cash out your 100k house that even in this market would sell for 500k” HAAHAAHAAAHHAA stop- your killin me - HAHAHA……

By Bubba

July 26, 2006 03:58 PM | Link to this

I’ll tell you what Chicago has that PB doesn’t…salary. I make in the low six figures, and the same job with my company in Chicago pays about 45-50% more. The cost of living on the north side in Chicago is comparable to northern PB County. While I’ll freeze up there, Chicago has a LOT more to offer than here. Especially since I can’t afford to own a boat, join a golf club, etc. if I’m trying to pay for a 500k house.

Anyway, I’m seriously considering moving even though I’m a Florida native. And there are a LOT of people I know that are in the same position.

Besides, in a few years I can buy one of those very nice condo’s after that market completely tanks and come down here for vacation.

By Seriously

July 26, 2006 04:02 PM | Link to this

Pop Quiz: RCA is really:

a. Dr. Evil b. Lex Luthor c. Hezbollah D. The Posts next Writer E. The same guy that predicted the stock market would collapse in 1995 and then said “I told you so” in 2001.

The same guy that stocked up on canned goods in December, 1999.

Tsame guy that will sue you when he slips on the sidewalk in front of your house.

Any person that has enough time to respond and post an article to every comment in this blog obviously has no solid career or personal life.

Another comment: Palm Beach Post Real Estate articles are junk - they are selling, not reporting. It is greed or fear. Right now fear sells. Linda Rawls quoted Mike Larson from Weiss Research…this is the same guy that was predicting a Real Estate market collapse in 2003. Good move Linda. She states that sellers have their head in the sand…no, they just know what their house is worth and are waiting for the right buyer.

There is no doubt things have slowed down, but there is not a “bust” in this market. Like Cole stated we have gone from 110 to 60.

There will be a lot of buying opportunity for investors because some people are caught with expensive sexy loans and will foreclose, however the overall market will only stall for a little while.

Sorry, this blog isn’t as interesting as RCA’s and the Posts “end of the world predictions” but it will more than likely be reality.

As for me, I hope the market cools off a bit. It would help me more than hurt me.

By Seller

July 26, 2006 04:19 PM | Link to this

If market cooling off a bit will help a bit, you are going to be in GREAT shape. This market slowed to 60 4 months ago, now at about 18. Will be in reverse by Sept.

By Rdr

July 26, 2006 04:28 PM | Link to this

Main Stream Media Left/Right Coast Elite report only negative, refuse to acknowledge positive developments…Its all their fault things went bad .. Where have I heard that B4?

By .

July 26, 2006 05:48 PM | Link to this

Why does PBC Owner keep posting under different names? Now he is “Seriously.” Does he thinks this makes him look like he has more support? Funny how he tries to come at it from a slightly different angle to make it look like it’s not him but he can never hide his pea brain style. Everyone knows it’s you dude!

By dg

July 26, 2006 06:04 PM | Link to this

to seller, the point was, if you purchased a home 3 years ago, and then experienced 300 to 400 percent gain, even if you lose a little from the top, you are still very much ahead. if a home is priced right it will sell. sales slowed by 39% YOY. last year was full of flippers. it did not slow by 139%.

purchased at 100k valued at the top of the market at 500k. sold for 400k. still a huge profit. over 300 percent after fees. i would like that return any day in 3 years.

run any situation if you purchased over 3 years ago.

if you put your home on the market for right at the lowest comparable, it will sell.

this market is slow, not dead.

we are also in the middle of the summer in florida, in a regular market, i remember when realtors used take the whole summer off.

By cmgr

July 26, 2006 06:26 PM | Link to this

MY GOSH: HAS ANYONE NOTICED THE APPRECIATION CURVE THIS YEAR FOR PBC!?! TAKE A LOOK! THE ANGLE OF INCREASE IS SHARPENING! GET READY FOR BOOM: PART-II JUST LIKE TIME/MONEY MAG. PREDICTED FOR LUXURY COASTAL MARKETS. GOING UP ANYONE?!? ENJOY!!!

http://www.sun-sentinel.com/business/realestate/sfl-0726zhomes_graphic,0,6857570.graphic?coll=sfla-features-food

By FL Renaissance

July 26, 2006 08:53 PM | Link to this

Wow…how many “bitter” chicken littles are on this blog. “The sky is falling…the sky is falling”..so if you believe that…how do you explain the fact that single family home prices (closed prices-not asking prices that is) are FLAT versus year ago even with the speculators and flippers gone and unsold inventory building? With the exception of the overbuilt and stupid condos ..there are NO firesales on prime single family homes. Just show me a newer luxury $500,000 home now selling for$250,000 or$300,000 or even $400,000 ?? Maybe you can negotiate one for $475,000 but it was likely purchased for $350,000 in 2002. So, I’ll take a “paper loss” of ($25,000)anyday as long it is on top of an realized profit of $125,000 anyday!! But I won’t sell now because I’m in for the longterm and watch, this winter the value will rise to over $500,000 again. Yes I am a property owner…but the carpetbag I am holding is full of equity money and I gladly put my belief of prime location real Estate on the line. I also own property in Hawaii and California and believe me Florida is undervalued!Money talks and losers walk! Money talks and losers walk!

By to fl renaissance

July 26, 2006 09:15 PM | Link to this

i agree, to a point. i think the values have not fallen yet because it takes about 6 to 8 months for the market to adjust.

the flippers are not gone, the last people holding the bag, are just starting to get desperate and those homes will be discounted.
the buyers who think they are going to get a home for half price are mistaken.

even if the bank takes it over, they will not let it go, for less than the mortgage, taxes, fees, etc..

most of those flippers put very little down, so the bank will hold on to them for what they have in to it.

any person who thinks they are going to compete for any forclosures at huge discounts, against the lawyers, realtors and professionals are as stupid as the shoe shine boy who thought he was going to make money flipping property. there are people who specailize in forclosures and vulture funds.

By cole to seller

July 26, 2006 09:27 PM | Link to this

seller, i guess you did not buy a nice place in pbc over 5 years ago. i puchased my grandfathers condo in the 2000 block of south ocean drive in palm beach from my sibblings. i paid fair market value in 2000. we had 3 appraisals done. the cost of 2/2, 1400 sq, 7th floor ocean view at the time was 136k. i spent about 60k renovating it 5 years ago. unrenovated places in that building on lower floors are selling for over 900k. so i guess if i put it on the market for 750k it wouldn’t sell? please. who would be laughing?

By NUMBERCRUNCHER

July 26, 2006 09:32 PM | Link to this

FL Renaissance is totally correct. You might also add Denver to that list. Two years ago I was thinking of buying a $800,000 2 story frame house in Denver. Glad I did not. I went to California and found a better home for same price range but better location and still close to ocean.

I might add that you can blame the NEWS MEDIA for having fewer sellers from the north come down here to buy property. Yes, the NEWS MEDIA scared the hell out of everyone about hurricanes here and the problems and damages - they scared potential buyers from coming down here and buying this year. Someone else was correct in saying that buyers are waiting to see what happens with the hurricanes this year. I have friends in several northern cities and every last one tells me that it is the NEWS MEDIA pounding it into their heads every day how bad it is to buy down here because we are going to have a cycle of 20 years of terrible hurricanes. The PALM BEACH POST reporters are not helping homeowners here either with their “coverage of the real estate market”. Maybe if the Palm Beach Post lost more of their advertisers and readers because of the slowdown of the housing market - the Palm Beach Post and their reporters would realize how instrumental they were in creating a panic to sell now before prices drop even more. Palm Beach Post can crunch some numbers when they lose their advertisers and their readers. I bet the Palm Beach Post writers to these stories are not even property owners - and are renters themselves. What do you all think???????

By Steve

July 26, 2006 10:04 PM | Link to this

Hey number cruncher, I think your one of them ostriches the Post was talking about on today’s headline.

By Steve

July 26, 2006 10:09 PM | Link to this

Hey fla renuissance, how does it feel to always be wrong?

By TH

July 26, 2006 10:15 PM | Link to this

Everything works in one big cycle and real estate is no exception. The government is to blame for the high prices and now the falling prices. History always repeats itself. Sounds like FLA Renaissance and number cruncher are in the process of losing their a$$es here in FL. Baby boomers I hate to say it, are going else where in Florida and to the carolinas, georgia. Hurricanes or no hurricanes..that does’nt matter…there’s always next season and the ones after that and high property insurance too no matter what happens!

By rca

July 26, 2006 10:42 PM | Link to this

since everyone hates me so much, i have much more to say!

Broward officials, residents seek solutions to soaring property tax rates NOW THEY ARE FIGURING THIS OUT

By Anthony Man Political Writer July 26, 2006

Fort Lauderdale — With emotions ranging from anger to desperation, property owners pleaded with politicians Tuesday to do something about soaring property taxes. BEGGING Democrats and Republicans alike responded with concern for the cries for tax relief, but didn’t offer much hope for quick fixes. The most-discussed reform can’t get on the statewide ballot until 2008. I CHANGE MY OBSERVATION, HOUSING CRASH THROUGH 2008 “We have a federal government, a state government, and a county government that are spending like drunken sailors,” J. Dean Abbott of Oakland Park said to the applause of 300 people at a town hall meeting on property taxes. “When the tax base has exploded, as it has in this county, and we are spending every dime of it, something is wrong.” IT IS CALLED ACCOUNTABILITY! Most local governments have taken advantage of five years of soaring property values to collect greater amounts of tax.

With the real estate industry concerned that high taxes and high insurance premiums are becoming a toxic mix for sales, Property Appraiser Lori Parrish and the Realtor Association of Greater Fort Lauderdale partnered on the gathering at the Broward County Main Library in Fort Lauderdale. REALTORS COMPLAINING ABOUT TAXES! THEY ARE LOOKING FOR ANYTHING TO KEEP THE BUBBLE GOING. THE PEOPLE WHO FED THEM (GOVT) IS NOW THE ONES THEY CRY TO. “I don’t know what happened here since 2001. Just because [real estate] prices have gone up, should the taxes have tripled?” said Henry Fera, a Fort Lauderdale real estate broker. “I don’t know what you are doing, but you’re not doing it right.” IF YOU OWN A HOME IN 2001 AT 170,000 AND SELL AND BUY A NEW HOME AT 510,000 GUESS WHAT, THAT IS TRIPLE THE VALUE AND NOW TRIPLE THE TAX. ADD THE COST OF A FLIPPER WHO BROUGHT ONE YEAR AGO AT 400,000 AND TRYING TO SELL AT 500,000 AND THE TAX IS LOOMING And when one of the politicians on the stage, state Rep. Ellyn Bogdanoff, R-Fort Lauderdale, wondered aloud when taxes would become so high that people no longer could afford to buy, some in the largely Realtor audience shouted, “We’re there.” HAVENT PEOPLE BEEN SAYING THAT MOST PEOPLE 75% CAN NOT AFFORD A HOME IN SOUTH FLORIDA. POLITICALS LOL “We need tax reform and we need tax relief,” said Dorine Longhini, president of the Realtor association. “We are not going to back down on this issue. We are going to keep the pressure on.” KEEP THE PRESSURE ON, IT DOESNT MATTER WHEN NO ONE IS BUYING. SO SAD Most of the 13 politicians and business representatives on the panel said people in the audience would have to work harder to get the lower taxes they want.

“Each one of you has to use all of your political clout,” Parrish said. POLITICAL CLOUT? THAT ENDED IN 2000. “The budgets are out of control. It needs to be stopped,” she said. “It’s like my mother always said, `What did you do with the money I already gave you?’”

Christopher Pollock, president and chief executive of the Greater Fort Lauderdale Chamber of Commerce, advised hammering elected officials when local governments deliberate over taxes and spending. Those meetings have started at city halls and government centers throughout the county and will continue through September.

“Only one or two people show up. Shame on you,” he told the audience. “We have a very apathetic electorate here.” POLITICS IS NOT FOR THE PEOPLE. IF THAT WAS THE CASE, WE WOULDNT BE IN IRAQ TODAY. Hollywood City Commissioner Keith Wasserstrom, speaking from the audience, said typically, only the regular handful of gadflies show up at budget time.

By contrast, when the City Commission considers employee benefits, city workers holding their children show up and pack the room, he said. NEXT THEY ARE GOING TO CALL WORKING CLASS COMMUNIST LIKE THAT REDNECK NAUGLE OF LAUDERDALE “We need you to come out. We really need your pressure,” he said.

Those at the meeting also focused on the Save Our Homes amendment to the state constitution, which limits the increase in property value subject to taxation to 3 percent a year.

State Sen. Steve Geller, D-Hallandale Beach, said Save Our Homes had a perverse side effect. The break on taxes applies only to residential homeowners, who are the most frequent voters, Geller said. Because they’re not getting hit with sharply higher taxes, he said they’re not motivated to turn out en masse to press for spending curbs.

Meanwhile, first-time buyers and business property owners get hammered with higher bills.

Almost all the panelists said they favored expanding the Save Our Homes amendment by adding a portability feature.

The savings applies as long as the owner stays in the same home, and resets when the residence is sold. SAVE THE HOMES IS THE GREATEST TAX BREAK IN THE WORLD. I CAN BUY AND STAY IN MY HOME AND ONLY SEE A 3% JUMP EACH YEAR. IF THE GOVT INVEST IN REDEVELOPMENT, QUALITY SCHOOL ALL OVER AND REDUCE CRIME, PEOPLE WOULDNT MOVE. (EXPECT WHEN PEOPLE THAT DONT LOOK LIKE YOU MOVE NEXT DOOR) Someone who buys a home today may pay double or triple the taxes paid by the owner of an identical home next door who bought 10 years ago.

County Commissioner Jim Scott said the prospect of sharply higher tax bills, even when moving into smaller homes, makes people “prisoners in their own homes here in South Florida.”

Portability would allow homeowners to take their Save Our Homes tax benefit when they move into another house.

John Faiella, a Coral Springs Realtor, said portability is a critical issue.

“Right now we are in a musical chair syndrome, where everyone is sitting down because buyers can’t buy. People can’t move,” he said. SHOULD HAVE CONSIDERED WORKFORCE HOUSING IN 2002

By What do we all think?

July 26, 2006 11:29 PM | Link to this

Well, NumberCruncher, let’s see. We think you are crazy. We also think think you spend way too much time defending the falling housing market under many different names, John. Now clean up your tract house lawn, the HOA is having a meeting about that trashy house where your whole family lives crammed together. Don’t p**s them off!

By FL Renaissance

July 27, 2006 12:47 AM | Link to this

We’ll see won’t we. He who laughs last..laughs best! It’s quite simple really, if you have a substantantial income as I do,you WRITE OFF your property taxes! DUH!It’s a tax shelter which on paper depreciates while it will appreciates in value over time However if you only earn peanuts and are of limited or low income…you certainly do not need the real property tax break…so just keep right on wastefully renting. No argument there! There has always been the Landowner versus the cashpoor itinerent serf!

By Seller

July 27, 2006 07:42 AM | Link to this

If you have decenrt income you must be familiar with AMT, :

State and Local Taxes If you itemize, there’s a good chance you claim a deduction for state and local tax, including property tax and state income tax. For 2004 and 2005, you can claim a deduction for sales tax if you don’t claim a deduction for state or local income tax. These deductions are not allowed under the AMT. If you live in a place where state and local taxes are high, you’re more likely to be subject to the alternative minimum tax.

By Why?

July 27, 2006 09:14 AM | Link to this

Wow, there are a lot of supposedly ‘rich’ angry people on this blog. Why are all you people who own property and have all this equity in your homes so mad? And why are you even on here? I thought I’d see a lot of people complaining because they can’t afford to buy at these crazy prices. Instead I find a bunch of posts from people who are pretty well off. And you’re all putting down people who make less money than you do. It must be nice to feel so superior just because you make more money than someone else. Make you feel good that you can afford a $500,000 home that someone else cannot? Good for you, I hope it helps you sleep at night. But again, if you are doing so well financially and the rediculous price of housing isn’t affecting you, why are you on here?

By Here's why

July 27, 2006 09:30 AM | Link to this

These guys are terrified by coming return to sane RE prices that can be sustained. Over extended and ego bruised they believed (and pushed) hype of last three years and are desperate not to be last without a chair when the music stops.

By Look at all the information

July 27, 2006 09:36 AM | Link to this

Any person trying to predict the market direction really needs to look at ALL the information. So many writers here are using examples from John Doe the shoe shiner who bought 5 homes at the peak of the market and is sweating more than a whore in confession.

Inventory is way up, prices are stable, interest rates are up and going higher, wages are stable, demographic reports, amount of risky loans, etc.

It is also important to try to get a measure of buyer mentality and seller mentality.

When you take all of this into consideration there is no doubt we will be going into a lull with Real Estate. But to think it will bust is extreme. You are not taking into account that most sellers are hard headed (as opposed to having their heads in the ground)and are going to fight for a good price. You are also not taking into account the cost of building a new home - commodities have soared.

I have always disliked this booming RE market…and I have made money as a result of it, however it has created a huge gap between the haves and have nots. And quite frankly, when I buy my dream home, I don’t want to drop 700k and pay $10k in taxes every year.

By FL Renaissance

July 27, 2006 10:00 AM | Link to this

Who angry? not me, nor do I feel superior…just very, very fortunate! I am just trying impart some key knowledge and wisdom to folks with the smarts to take advantage of this false mass RE crash hysteria. Go find yourself a bargain from a truly distressed, overextended homeowner. The are more real estate wealth opportunities around now then before…if you buy the right location e.g. oceanfront, lakefront, golf course etc. (no overbuilt condos please)If you don’t wish to take advantage of this window, I really don’t care…more opportunities for me! Knowledge is power. So just wait until the market is hot once again and then just pay more. Even idiots know that you should buy low(er) and sell high(er). End of lesson…there are none so blind as those who will not see! God Bless America!

By ItstheInventory.

July 27, 2006 10:08 AM | Link to this

Have looked at factors of RE mkt, the most compelling factor is huge inventory despite many homes taken off mkt when no offers. Many potential sellers not putting home on mkt as they wait for current inventory to start seriously moving, hopefully at “good” price. Another factor is current returns on cash. Even CDs returning 6% with no Ins or maint expenses to dilute return. Not looking at crash, but I also have to conclude Boom is over. Don’t take it personal folks, if you have’nt been recent buyer, still did very good. Enjoy benifits of other’s “irrational exuberance”

By Jupiter-Renter

July 27, 2006 10:14 AM | Link to this

This blog is hilarious, after this bubble deflates I want to hire NUMBERCRUNCHER, cmgr, and FL Renaissance to do some stand-up comedy routines in the Ocean Mall parking lot. They will likely be looking for work after going bankrupt on their “investments”.

You guys couldn’t possibly be serious, could you? Your not going to see a median price of $500 K for a minimum of 6-8 years, and you will see a median under $300 K a lot sooner.

Open any book on asset bubbles and you will see that S. Florida Real Estate is a classic example. The facts you guys refuse to recognize is that the average RE bubble takes 4 years to unwind, and prices always correct to a long-term trend equal to or just above the inflation rate. A 50% decline in real values will get you in that ball-park.

NUMBERCRUNCHER floor roller!! “So if the median price is about $406K now - can you imagine where the prices will be after October 1st - especially if there are no hurricanes this year??? I say single family homes will be asking $50K - 75K more this October than they were last October.”

By Wondering

July 27, 2006 10:23 AM | Link to this

Fl Renaissance - What about reference to AMT and taking deductions ?(see post by Seller) Do you know effects of AMT or Not.?

By resident

July 27, 2006 10:35 AM | Link to this

Some of you negative people thought the prices was going down, i think these other positive people and people in my office all believe that $500,000 median price is not out of the question. Maybe the negative people will never have the money to buy here.

By 700K

July 27, 2006 10:43 AM | Link to this

Earlier post refd to tax on 700k home as 10K. Tax is actually over 16,000 on 700K home see ;http://bcpa.net/index.asp?page=TaxCalc

500K tax 11,700

By resident

July 27, 2006 10:46 AM | Link to this

Property tax is based on the selling price, which is 2.2%

By FL Renaissance

July 27, 2006 10:48 AM | Link to this

Of course I bump up against the AMT but I never said I didn’t pay any taxes did I?? I go right up to the MAX deduction. So what? Also I use IRS code 1031 Starker Trust Exchanges and remember the capital gains tax is only 15% on assets held over one year. That’s a heck of a lot less than ordinary income ta rates! Any loss can be carried forward as well. But as I most angy bloggers cannot rub two nickels together so what do they know!

By consider all the information

July 27, 2006 11:21 AM | Link to this

Thanks for the correction in tax amount - I was just threw out 10k without thinking about it

Taxes are another big issue to consider…if the tax laws change prices might go up. Taxes are what prevented me from buying a home this past March (thank goodness!). I couldn’t imagine paying $7k plus on a $425k house my wife wanted soo bad - especially since my current mortgage bill (with taxes) is $9K a year.

By Wondering

July 27, 2006 11:21 AM | Link to this

FL Renaissance- “if you have a substantantial income as I do,you WRITE OFF your property taxes!” This makes it sound as if AMT has no effect on your writing off your property taxes.

Who do you use for so many property “exchanges” under 1031 ?

By AMTvictim

July 27, 2006 12:09 PM | Link to this

The AMT bites. here is some info if you get bit: That means filling out Form 6251. In effect, you are simply adding back some tax deductions and income exclusions to your regular taxable income to arrive at your alternative minimum taxable income. Here is where the middle class gets soaked. First you have to add back your personal- and dependent-exemption deductions ($3,200 each in 2005, $3,300 each in 2006), then your standard deduction if you don’t itemize ($10,000 for joint filers in 2005 and $10,300 for joint filers in 2006; $5,000 for singles in 2005 and $5,150 for singles in 2006). You also lose your state, local and foreign income and property-tax write-offs, as well as your home-equity loan interest, if the loan proceeds are not used for home improvements.

By cole

July 27, 2006 02:50 PM | Link to this

i guess the end of the world is near, because National City is about to spend another billion here in PBC.

They have just bought two large area banks with huge real estate holdings, because, the “experts” on here have a strangle hold on the situation, and this huge gizzlion dollar company has no idea what they are doing?

also i guess scripts has no idea either? and the 6000 plus jobs they estimate will feed off of it, as it has in CA. they have no idea????

toll brothers, centex, orleans, dh horton, and all the other huge home builders who have been around for 50 plus years, they too are idiots, and have no idea what they are doing? but some knuckle head in his mother’s basement, who does not even own a home, has all the answers.

it might be rough for a little bit, but land, labor, and materials will simply not allow you to build at a lower price.

media coverage of the weather?? maybe the local/national media might want to look at how many people have been hurt in CA during this heat wave. i really do’t know but did a 100 people die in all of south florida during any of the storms last year?

we are not below sea level here, like new orleans is, we may be at it, but not below.

do not count pbc out, people moving to nc and other hicksville places, is not what palm beach, wellington, jupiter, pga, boca and even downtown wpb are about. it is not about what it costs, these people do not care what it costs, that is why they are here.

if you can not take advantage of the fact that these people have huge money to spend, on homes, cars, entertainment, and any other service you might provide, too bad.

By FL Renaissance

July 27, 2006 02:55 PM | Link to this

Important to use a reputable intermediary who is licensed and bonded. I recommend a National Trust and Exchange Company! All cash proceeds must be held in escrow…you cannot have constructive receipt of funds or else the deferring of tax in a like-kind exchange is not valid. Sorry no more freebie advice. You’re all on your own…Good Night and Good Luck!

By Inventory

July 27, 2006 03:07 PM | Link to this

cole, take it easy, no one wants to hurt you… there will always be high end sales in PBC, you can toady to all the rich folk you want. Mid range housing needs to be not only affordable for at least some local buyers, it has to be less annoying to 2nd home buyers who have no problem financialy. but do resent big time the lopsided tax structure costing them 1500 a month for taxes alone. While next door pays half that.Then the other annoyance of Ins. here. If these annoyances get addressed you might see more buyers interst. If they keep getting more annoying INVENTORY will keep climbing. Also, stop disparaging other areas. You are really only showing your ignorance of very nice high scale locations elsewhere. Try traveleling a bit more, or at least surf the net and check em out.

By Wondering

July 27, 2006 03:29 PM | Link to this

Looks like FL Renaissance ducking from question about AMT. Here is part of his post : “It’s quite simple really, if you have a substantantial income as I do,you WRITE OFF your property taxes! DUH!It’s a tax shelter which on paper depreciates while it will appreciates in value over time However if you only earn peanuts and are of limited or low income…you certainly do not need the real property tax break…so just keep right on wastefully renting. No argument there! There has always been the Landowner versus the cashpoor itinerent serf!”

Despite “substantial” income he is unfamiliar with AMT re property tax WRITEOFFS. (See posting above by AMTvictim) Do we have a bogus blogger in Mr Fl R. ? Edward R Murrow wouldn’t like his signoff used by a bogus reporter.

By PBC OWNER

July 27, 2006 04:18 PM | Link to this

Wow, there are some people out there , HAVE NOTS, that are so jealous of the ones who have property, THE HAVES, and will be cashing in someday with a nice profit may i say.

Don’t let them (Have Nots) get to you, they are to busy not working, not making money, not selling (Realtors), and non property owners who keep on banging away on their keyboards night and day it seems on this site with one hand, and God knows what they are doing with the other hand.

I guess people like myself, Cole and Fl. Renaissance and others who KNOW the market, will watch the Palm Beach area slide into the ocean someday.

The HAVE NOTS and the other NEGATIVE non-property owners better get away from your keyboards and make some money. Otherwise, you might go broke and blind. And i can tell my stalker friend has paranoia, thinking i am every writer on this site. Sorry, not me. I am busy making money as always.

By Owner

July 27, 2006 04:35 PM | Link to this

As longtime SoFl and elsewhere (Jersey Shore) property owner I find you “gentlemen” claiming to be owners an embarasement. Whenever you see post you can’t/won’t answer you resort to negative personal attacks. Or change topic. If you been successful, be thankful not boorish.

By Fool Spotter

July 27, 2006 08:53 PM | Link to this

PBC OWNER/NUMBERCRUNCHER You are at least 3 names in this discussion. You fool nobody, John, you nut, LOL! YOU are the obsessed one and that’s why you post under so many different names…don’t want look bad. But since you are too stupid to change your style enough to make a difference, it’s always obvious which one you are.

By Steve

July 27, 2006 10:20 PM | Link to this

Hey Cole, you put alot of faith in a few big companies. Do you remember the stock market a few years ago? Alot of big companies lost their butts. The building companies you mentioned have lost alot since November also.

By rca

July 28, 2006 11:06 AM | Link to this

2006-04-30 Most of you know by now that my “day job” is real estate. My wife and I practice real estate north of Atlanta up in Roswell and Alpharetta. As Mish continues to pound away trying to make the point that residential real estate is doomed or worse, I feel honor bound to jump in every now and then and remind everyone that real estate is local, local, local. That means that even if real estate is in trouble in say, Florida, it’s still, according to my sister, doing extremely well in Houston, and very well, I would say, in Atlanta. We have twelve deals closed or pending through April which is about where we were this time last year. It’s looking like a twenty five deal year which is fine.

By rca

July 28, 2006 11:07 AM | Link to this

2006-07-20 Most of the regulars here know that my wife and I are a Realtor team associated with one of the major national firms here on Atlanta’s north side, out in Roswell and Alpharetta. It’s been a “character building year” as another agent in our office put it the other day. What makes it more stunning, at least to me, is that it started out so well. We ended the first quarter with nine deals pending or closed, which is a very solid start. Then we hit a brick wall with only three deals in the second quarter and that would make it our worst second quarter ever in our twelve years.

Then it got worse. Normally, over the years, about one in fifteen deals fall out, that is, they fail to close. Usually it’s over the inspection contingency amendment but not always. At any rate, two of our three second quarter contracts failed to close. Unbelievably we booked and closed only one contract in the second quarter. So here we are, July 20th, with only ten deals for the year. What a mess.

How those two contracts failed just might tell a story about this years’ market and the economy in general. First, one of them was indeed over the inspection amendment. Most of you understand that after going under contract, the buyer is entitled to have a qualified home inspector do an inspection. The buyer then presents a copy of the inspection to the seller along with an amendment to the contract asking for the repair of defects affecting safety or the structural integrity of the home. In this instance, the buyer went far beyond that, asking for, at least in my opinion, cosmetic items and home improvements. Our sellers’ response, I thought, was more than fair, but the buyer would not yield. Normally we can work these differences out but not this time. Looking back, it is clear that the buyer was determined to wring additional concessions out of the seller or not close. We had a failed agreement and both parties signed a termination and release as required. That listing is back on the market.

Then the other failed contract was even more unusual. We had been working with relocation buyers from Cincinnati for several months. We found them a great house and went under contract. Ten days before closing they called to say they had decided they did not want to move. [Instead] he is leaving the company [that was] trying to move him to Atlanta. My take on this is he was afraid they would move him down here and then let him go. His company is facing a management reshuffle. But, who knows? At any rate, it cost him $5500, his forfeited earnest money.

So here we are with ten deals and needing a total of about twenty to meet our cash flow needs; personal and business plus taxes. The last year we failed to “make a living” so to speak in real estate was about 1994. Without a strong finish we just may be looking at that again. What are our chances of pulling it out? It’s still possible. We have several buyer prospects plus we have ten listings and listings are the life blood of any real estate business. We will, with certainty, get one more listing by month’s end. On the other hand, we have a listing that expires at midnight Monday and we don’t expect them to renew. They have had two lowball offers and have refused both. My take is that they can’t reduce without going under water.

What do you do if you owe more on your home than you can sell it for? Apparently, you just decide to sit on it and hope for a better market, at least for now.

By Apples and Oranges

July 28, 2006 01:48 PM | Link to this

Comparing Georgia (or Ohio) real estate with Palm Beach is like comparing Phyliss Diller with Catherine Zeta Jones.

By Steve

July 28, 2006 06:49 PM | Link to this

Is Palm Beach Phyliss Diller?

By WHATAPUTZ

July 29, 2006 09:23 PM | Link to this

Yea right! If you read any of Steve’s postings, they are all as inane as the above. What a schmuck! He has to be a poor Florida cracker living in a rented trailer down by the river.

By Steve

July 30, 2006 03:09 AM | Link to this

Actually, I’m renting right across the street from the beach. I am a Florida cracker though, nice observation.

By Hef

July 30, 2006 08:33 AM | Link to this

I rented on the beach for 7 yrs, in Delray and Ocean Ridge because I couldnt afford to buy either. Then one day the landlord sold and says you have 60 days to getout(very nice of him). After living thru numerous hurricane evacuations, obnoxious dirty inconsiderate tourists, increasing beach closures due to sea lice, I decided to buy in a great neighbourhood in a NO FLOOD ZONE(cheaper ins). I love Palm Beach Gardens. Far from the rat race, less than 10 mins from everything the best of Palm Beach has to offer. I wasted thousands upon thousands of $$$ renting the Palm Beach lifestyle, now I OWN a piece of it. I’m not worried about R.E. because I bought ridicously low from the dumbest, wannbe Donald Trump, R.E. Agent/property owners around.

By Hef

July 30, 2006 10:11 AM | Link to this

Your a Fla. Cracker (native) and you rent. Your a cracker allright, CRACKHEAD.

By Steve

July 30, 2006 02:27 PM | Link to this

Hey Huf, your a pretty hostile guy huh?

Maybe you have maleria from all those mosquitoes out in the boonies?