The Housing Boom Has Run Its Course

The Daily News reports from Florida. "Foreclosures are at a record high across the county, and you’re looking to snag a deal. The first step? Proceed slowly and carefully, said Okaloosa County Clerk of Courts Don Howard. 'Anytime you’re buying foreclosed property, there is some risk involved,' Howard said. 'The availability of foreclosures is much more simply because the filings are up. Considering the falling prices, it might not be a bad time to look.'"

"Some real estate agents say it makes more sense to concentrate on the current market, which has started to correct itself. 'I’d much rather be buying today than two or three years ago,' said Jim Gilliland, a veteran Realtor on the Emerald Coast. 'Prices are much lower.'"

The Palm Beach Post. "Foreclosure filings in the Treasure Coast more than tripled in August as the worst housing slump in 16 years continued to send shock waves through local households amid more evidence that severe economic problems could be on the horizon."

"In Palm Beach County, lenders foreclosed on 1,210 homeowners last month, compared with 435 in August 2006, according to the county clerk's office."

"'Owners of condos who speculated pre-construction are trying to dump them at their sales price,' said real estate lawyer John Pankauski in West Palm Beach. 'Investors will have to realize that to get rid of their condos — and to stop paying real estate taxes and maintenance fees - they will have to take a hit.'"

"Buyers have dried up, however, because of tougher credit practices and 'the fact that the housing boom has run its course,' he said."

The Belleair Bee. "Mayor John A. Robertson has reiterated his claims that short term rentals in the town are 'really a disaster.' The town began prosecution of the owners of three beachfront homes last month, when he described neighbors complaining of debris littering the beach in front of those homes, noisy parties with cars parked indiscriminately and crowded beaches."

"Robertson said, the property owners have continued to advertise their homes for rent. He said this appeared to be a snub of the town’s warnings. Rhonda Hogan of Hillsborough County, who owns two of the houses in question, allegedly has told Robertson that she must rent the houses until they are sold to avoid bank foreclosures."

The News Journal. "Palm Coast resident Al Mascolo said he has spent 80 to 90 hours each week for the last few months finishing the construction of his new home. But it isn't because he wanted to do the house himself. He says the builder left him no choice."

"'This is costing me a lot of money,' Mascolo said."

"Homebuyers like Anthony Rappa say Canterbury Estates Homes's owners, Herbert Heron and Noel Richardson, didn't pay the subcontractors who worked on their homes. But the company has left them scrambling to pay the people doing the work."

"Ron Paulsen, owner of R&R Drywall (said he) didn't get paid and placed liens against the homes. 'Where's all the money going if they're not paying their bills with it?' Natalie Krassner said last month when some of the affected customers gathered together to swap Canterbury experiences."

"In an interview Thursday night, Richardson and Heron denied any intentional wrongdoing. They blame recent complaints against their company on the soft real estate market and sudden increases in material and overhead costs during the previous hot housing market."

"They said their company has been hit with deficits in the tens of thousands on many of their contracted homes because they didn't have the heart to reduce the quality of their work or pass the increased costs along to the customer. 'Maybe that's where we went wrong,' Heron said."

"Enrollment in Volusia public schools is down about 1,100 students from a year ago, meaning some teachers could lose their jobs and others will have to switch schools."

"This is the first time Volusia school enrollment has declined in 25 years. Volusia officials don't know why enrollment declined, but Superintendent Margaret Smith said they've heard some parents are moving away because of the slumping economy."

"'We've had some parents report to us they're involved in mortgage foreclosures,' she said, also pointing to some state reports indicating more people are moving out of Florida these days than coming in, especially if they work construction jobs."

The St Petersburg Times. "This week was supposed to climax Trump Tower Tampa's two-year pursuit of financing. Area developer SimDag LLC promised either to seal a deal to build the $300-million luxury high-rise or concede defeat and refund buyers' deposits on condominiums costing up to $6-million."

"But as the work week drew to a close Friday, the project found itself in familiar territory: limbo."

"Buyers, who placed deposits of 20 percent on units costing from $700,000 to $6-million, had been told to expect a decisive turn of events by Wednesday. By Friday, it appeared they had been left hanging. 'They've e-mailed us nothing new,' George Galiourides, one of the condo buyers, said Friday."

"Banks have steered clear of financing the project in the slumping housing market. According to Trump's lawsuit in May, fewer than 70 percent of the 190 units had 'bona-fide purchase contracts.' Several buyers have sued to get their money back."

The News Press. "A Charlotte County golf course that had become popular with Cape Coral golfers closed this week. A few golfers had parked Friday near the almost-deserted Tern Bay course, where Tom Cavanaugh of Sarasota-based Double Bogey Transport loaded up golf carts that were headed for Cart Guys in Punta Gorda. 'This joint’s closed,' Cavanaugh said."

"The course at Tern Bay seems to be another victim of the current housing market in Southwest Florida. 'The project is not dead,' said Geri Waksler, who represents the developer on land-use issues. 'The market is dead.'"

"Waksler said Tern Bay would remain dormant until the housing market rebounds. 'As recently as a couple of weeks ago, they were still working on permitting for the project,' Waksler said. 'The only thing that is not happening is a function of the market — houses are not coming out of the ground.'"

"Fourteen homeowners live in Tern Bay, which was planned to have 1,800 homes. Twenty coach homes and 15 single-family homes are either waiting to be sold or are under construction, according to Lennar Corporation, the project’s builder. But a Lennar spokesman said the company has no plans to continue building."

"Waksler said she represents other developments in the area experiencing the same problem, but she declined to name them."