Condos

Shadow Inventory Unlikely to Hurt Market

Nearly 5 million houses and condos, of which the mortgages are delinquent, will go through foreclosure over the next few years, a new study by John Burns Real Estate Consulting Inc. concludes.

This represents more than half of the 7.7 million households now behind on their mortgage payments. The situation is worst in Arizona, California, Florida, and Nevada. Burns calculates that there is an inventory equivalent to 27 months of sales in Orlando, 24 months in Miami, and 18 months in Las Vegas.

Consulting firm CEO John Burns says there is strong investor demand for these properties, so as long as employment continues to recover and interest rates remain moderate, these sales won’t have much impact on overall prices.

Source: The Wall Street Journal, James R. Hagerty (02/16/2010)

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Elliott Robinson, JD – Associate Broker
Keller Williams Realty Metro Atlanta
315 West Ponce de Leon Ave., Ste. 100
Decatur, GA 30030
(404) 431-2117
Web: www.elliottyouragent.com
Blog – www.elliottonrealestate.com
Twitter – http://twitter.com/elliottrob

Condos

Manhattan Condo and Co-op Prices Fall

Condo and co-op prices in pricey Manhattan fell for the second quarter in a row, according to data from Prudential Douglas Elliman, one of the city’s largest real estate firms.

Expensive properties were the hardest hit with the median sales price of a luxury apartment – those in the top 10 percent of sale prices – falling 17 percent to 26 percent with the number of sales reduced by half.

About 61 percent of all sales were below $1 million, down from 49 percent a year ago, according to Miller Samuel Inc., which analyzed the number for Prudential.

Meanwhile, the average time it took to sell a property rose 48 percent from a year ago to 129 days with the number of price cuts doubling, according to a report from StreetEasy.com.

“It’s the beginning of the new reality that 2007 and 2008 were not the norm, but the peak,” says Pamela Liebman, CEO of The Corcoran Group.

Source: The Associated Press, J.W. Elphinstone (07/02/2009)

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Elliott Robinson, JD – Associate Broker
Adams Realtors
458 Cherokee Ave. SE
Atlanta, GA 30312
(o) 404-688-1222