One man's trouble = another man's opportunity

[trof]

Yes, this is about the mortgage/credit meltdown.

My buddy Carl called yesterday.
He'd just heard from an old friend of his, a property developer/homebuilder.
The guy is in deep serious and needs some fast cash to try and keep his head above water for a little while longer.

He has a lakeside development north of Montgomery, AL.
He offered Carl 2 brand new houses, about 2000 sq. ft. each.
Not on the lake, but a block from it.
$175,000 for both.

Carl can afford to hang on to them, maybe rent them out, until this crisis blows over. Then figures he can probably sell them for around $100,000 each. Maybe more.
He's driving up today to take a look.

And so it goes.

[sinkingfeeling]

1. There are something like 9 different 'developments' being auctioned off this weekend here in NW

Arkansas because the developers/builders are going bankrupt. This area was just ranked 16th. fastest growing area in the country, down from 8th. place last year.

[MadHound]

2. That's one big benefit to this housing downturn in my area

It puts a halt to out of control development, eating up the countryside, destroying the environment.

[melm00se]

3. recessions

and real estate free fall will stop when enough people perceive that the price is now worth the expenditure. that is the purpose of price.

[trof]

4. Homes in my neighborhood on market for 2+ years. Why?

BECAUSE THEY ARE PRICED TOO HIGH!
Any house will sell if it's priced according to current market conditions.
Any house, anywhere.

2 or 3 years ago I could have gotten around $200,000 more for my house than I can now.
So if I were going to put it on the market today, I sure wouldn't list it at 2005 prices.