Mortgage Market Slows Condo Projects

\r\nWhat do you do when houses are too expensive to buy and open land is getting scarce? Many developers had turned to building condos, or condo conversions, as the demand for high priced homes tapered. In turn, as the demand for condos went up, so did the prices. Now many developers are stuck with half finished buildings or cleared land, but no buyers for the product. Philadelphia and Las Vegas have seen million or billion dollar projects put aside as interest wanes for high priced apartments.\r\n

The area that this impact can be most readily seen is in south Florida, condo capital of the nation. From Miami to Ft. Lauderdale to the Treasure coast, condo projects that were looked at with such high hopes are now being put aside. Home buyers are realizing that single-family homes are coming down in price, while condo prices are staying up there; those shopping for real estate are now turning back to having their own home. While some developers are selling their partially cleared land, other are swooping in and buying them at less than cost, looking toward another boom in a few years where condos will, once more, be the way to go.\r\n