Archive for October 15th, 2007

Housing Woes Inevitable

There was a wonderful article in the Orlando Sentinel yesterday (Sunday). [Realted Story 1] [Related Story 2] It was part one of a two part series on how the housing market is bottoming out.

This article was focusing on all the foreclosures around the state. They are at records highs, and some areas are almost triple what they were the year before. What’s causing all these foreclosures? Well, there’s several reasons:

* Developers building as many homes as they can (Greed)
* Mortgage companies lending money to anyone they can without regard to the consequences (Greed)
* Investors buying up homes in hopes of flipping them (Greed)
* Home owners living way beyond their means (Stupidity)
* Realtors selling everything in sight (Greed)

So there’s plenty of blame to go around. And as home prices and interest rates began to go up, it all started crashing down.

Poincianna and Osceola county have been the hardest hit. Families defaulting on their loans and being evicted there, and all over Central Florida, are leaving homes sitting abandoned in neighborhoods all over…even in the uber-rich neighborhoods like Isleworth.

Developers have officially built more homes than people moving into the State. Who’s going to buy those homes? I haven’t a clue. The only good thing I can say is this will slow down the flood of New Yorkers and Ohions moving to the state. Because this situation is hitting the nation. The other most affected states are California, Arizona, and Nevada.

US greed has brought us here, people. If you own a home and are making your mortgage payments every month, then count your blessings. For everyone else who can’t, it looks like the apartment rental business will be cleaning up taking in all those evicted families.