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Ritackay

Beach Lover
Oct 25, 2005
233
0
Santa Rosa Beach
Since we are on the subject, I have a 5th floor unit at Moreno Point down by the Destin bridge that needs to be off my plate too. It's about 2000 square ft. with 3 BR & 3 Baths. Needless to say there is NOT another view like this one. It overlooks Crab Island, Destin Harbor and Choc. Bay. I'll take $895,000. These a choice units in this location.

I also have a unit at the Village of Blue Mountain that I would sell for $425,000 - furnished!

All these units are for rent.
 

ecopal

Beach Fanatic
Apr 26, 2005
261
7
I think a key question is how many properties were built as investments to sell with no intention of living/vacationing there. If you can separate the volume into true buyers vs investors building to resell, that would be instructive. I was in Starbucks the other day and noticed a guy sharing the table with me that was on the phone, quite animated, for quite a while. Turns out, he has about 10 houses going up from Destin down to San Blas, even had a couple in Orlando area. He had a separate file for each one, bursting with papers. Each one was a spec he was hoping to resell prior to closing. In a word, he is screwed and he knows it. Told me he is just trying to get out with his skin at this point. He was not a prof builder, had a day job, which is lucky for him. You never want to be the last guy in....

Thanks for sharing that-very interesting.

Until speculators like the one you saw in Starbucks capitulate, the market will not have bottomed.

What will happen to all the lending institutions when they get all these properties back that are now worth less than the mortgage?
 

Bob

SoWal Insider
Nov 16, 2004
10,463
1,344
O'Wal
Thanks for sharing that-very interesting.

Until speculators like the one you saw in Starbucks capitulate, the market will not have bottomed.

What will happen to all the lending institutions when they get all these properties back that are now worth less than the mortgage?
They will get a nice write-off and the next owner benefits by the reduced price. Not an end-of-world scenario. Same thing happens daily regarding credit card chargeoffs and bad installment loans.
 

SHELLY

SoWal Insider
Jun 13, 2005
5,775
802
Thanks for sharing that-very interesting.

Until speculators like the one you saw in Starbucks capitulate, the market will not have bottomed.

What will happen to all the lending institutions when they get all these properties back that are now worth less than the mortgage?

Unlike in years past, the lending institutions aren't holding as many full mortgages. Most of the mortgages have been "sliced and diced" and sold off as Mortgage Backed Securities (MBS). Some of "junk mortgages" that brokers have unloaded are now beginning to find their way back home in the form of "buybacks"--some are not, and the holders of MBS's are going to be left holding the bag (retirees, insurance companies and banks, foreigners). This big can of worms will ooze its way through the entire economy over the next couple of years. The Fed will make sure the banks come through OK--the same can't be said for the sleazy brokers, MBS holders and "investulators."
 

SHELLY

SoWal Insider
Jun 13, 2005
5,775
802
I think a key question is how many properties were built as investments to sell with no intention of living/vacationing there. ....

68 Pine Needle Way in Watercolor, on the block for quite a while...listed for sale at $1.7M, then at $1.4M, then went to auction this past weekend. A single bidder...SOLD! for $860K. (Whah..whaw...whaw)
 
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Pirate

Beach Fanatic
Jan 2, 2006
331
29
68 Pine Needle Way in Watercolor, on the block for quite a while...listed for sale at $1.7M, then at $1.4M, then went to auction this past weekend. A single bidder...SOLD! for $860K. (Whah..whaw...whaw)

Looks like 50% of high market to me.
 

Jellyfish

Beach Lover
Jan 6, 2006
89
0
Atlanta
Regarding what level of pricing that we may return to, a little back of the napkin math is interesting. This assumes $250 per sf for the house and peak lot pricing, and $ 175 per sf this winter-contractors are getting hungry post peak and post Katrina. And you know lots have dived as well.

2005 2007

Lot $ 500,000 $ 300,000

House 2000 sf 500,000 350,000

Total $1,000,000 $650,000 (35%)


Granted this is really rough and it's impossible to generalize, but I dont think its far off
 
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