Property Tsunami

Tags: auctions, condominium, Foreclosure Listings, Foreclosure Property, Foreclosures, nevada, ohio, single family
Posted in Foreclosure Property, June 7th, 2007 |

Investors are moving in for the kill. The lashing tidal waves surging through the entire country has taken its toll. Now is the time to buy and buy – most probably to rent it out and wait for the wave to subside. It’s a great time to shop for foreclosures.

The worst hit are the suburban areas. The hearts of the cities are yet to feel the pinch. But there is no doubt that temperatures are rising fast and developers are scrambling over each other to make hay while the sun shines – at least for them.

Statistics gives a grim picture. Since the first quarter of this year 3,605 houses in the seven-county metro regions have gone up for auctions. This gives the area the dubious distinction of continuing to rank first since the previous year in this matter. The total number is more than 34,000 and that does not include 9,000 single-family units about to be completed and lying vacant.

Condominium Opportunities Partners in Eden Prairie is a new group tempted to come forward to the beckoning call of rows of empty condos dotting the landscape of Twin Cities. At a guess there are bout 3,000 to 4,000 foreclosure and apprehended foreclosure listings in the seven-county metro region. For good reasons developers are trying to conceal the magnitude of the crisis.

The group plans to go for bulk buying of foreclosure units from the banks by offering steep discounts to the tune of 60%. Without disclosing details of the partnership the group says that more than $10 million has been invested – the funds coming from rich persons and few institutions. Already they have started opening a dialogue with lenders. They anticipate that it will take quite a number of years before the market makes a turn around and recovers.

Studying the area, Condominium Opportunities Partners opines that two problems are at the root – overbuilding and poor designs. About six heavy weight developers are in the red and many condo projects have gone into foreclosures. One cookie-cutter floor plan for all the units, expensive parking lots and thousands of square feet of unnecessary amenities like theatre rooms and libraries have driven up costs. Another reason has been wrong choice of location. Condos priced at $3000,000 and $400,000 came up in areas where homes were valued at $225,000. Some of the projects were losers in all respects from the very beginning.

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