from The Globe and Mail (Canada):
Flip? Flop
Sunny Miami was once prized for its beach vistas and easy-money condo market. But as prices spiral downward, speculators are in trouble, and the pain is widespreadBARRIE MCKENNA
March 14, 2008
MIAMI -- The condominium towers of Miami's Brickell Avenue strip are at their most dazzling by day - their mirrored facades shimmering against the emerald waters of Biscayne Bay.
Sundown, however, quickly exposes the stark reality of the U.S. real estate swamp.
A dozen towers stand out as darkened monoliths against the night sky. The lights are off because no one is home. In downtown Miami, thousands of condo units, many unsold or already in foreclosure, sit empty and unwanted. Now, the vultures are circling - the inevitable hangover from a wild ride of speculative excess.
"No one expected to ever have to live in them," explained real estate broker Peter Zalewski of Condo Vultures Realty, which represents buyers eager to scoop up condos from distressed owners.
The market crashed, and the lights went out. Miami now enjoys the dubious distinction of being the worst major real estate market in the United States, perhaps the world.
Prices citywide were 17.5 per cent lower in December than a year earlier, according to the latest S&P Case-Schiller national home price index - easily eclipsing other speculative hot spots, such as Las Vegas, Phoenix and San Diego.
The market value of downtown condos has plunged as much as 50 per cent, from a peak average price of $500 to $700 (U.S.) a square foot to as low as $300 a square foot - or less than it costs to build a condo. ......(more)
The complete piece is at:
http://www.theglobeandmail.com/servlet/story/LAC.20080314.RSUBPRIME14/TPStory
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