Anyone Bidding For Homes?????
Inside Room 385 of the Broward County courthouse, dozens of foreclosed properties were auctioned off publicly. A condemned 26-building property in Lauderhill is among the high-profile sales. Some properties may not draw as many bids as they would have before the housing market's downturn. (Sun Sentinel/Mike Stocker / August 21, 2008)
"Going once, going twice, sold to Intervest."
When no one responded to a call for bids Thursday at the Broward County Courthouse, a condemned Lauderhill apartment complex reverted to the bank that has a $20 million investment in the place.
The 26-building Villas of Lauderhill had plenty of company at the public auction. Nearly all the foreclosed homes and condominiums offered during the traditional "courthouse steps" fire sale failed to attract buyers.
Amid the downturn in the Florida housing market, lackluster turnout at court foreclosure auctions is becoming common, according to lawyers who frequent such auctions to bid for mortgage lenders. "Last year, there would be tons of bidders. This year, there's barely anyone," said Vincent D'Antonio, a Plantation-based attorney who on Thursday bid to keep three Broward homes for a bank.
Few showing up for auctions in Florida as prices keep falling and falling. In a number of areas now homes are selling below construction cost. I heard about an investor in the Fort Meyers area who purchased 5 new cookie cutter 3 bedroom homes for $50K each. A couple years ago the lots were selling for about that price.
It is simply this, as cost for food and fuel keep rising, and jobs keep getting cut, more and more people will start doubling up in the same residence. If that trend persists, we could have over a decade of home supply already planted. As non housing necessary expenses keep rising, the amount left for housing keeps contracting.
Again, for the first time in over sixty years, credit is contracting in America. As long as people could borrow to meet their spending needs, everything was fine. People spent and asset prices went up. For the first time since the great depression, credit is contracting and asset values are crashing.
Money and asset values are evaporating. Revenues to business and government is shrinking and deficits are balooning. Defaults are growing every month and there doesn't seem like much will stop the feedback loop.
In the end no one really knows where this will stop.....but we do know that more and more debt defaults......more and more distress is on the way.