The Daily Soak - April 30

Housing Starts Down Dramatically Throughout Florida

More good news for those hoping for some equilibrium in Florida's housing supply/demand equation. According to Metrostudy, single-family housing starts posted significant double-digit declines in all major metropolitan regions of Florida: South Florida (-48%), Metro Orlando (-54%), and Tampa Bay (-43%). Despite the statewide pullback, lot inventory and finished vacant inventory remains high in most markets, especially the six-county South Florida region with over 15,000 finished vacant condominium units and over 30,000 condominium units still under construction. So where does Florida housing hope spring eternal? According to Metrostudy, the Top 3 South Florida communities ranked by housing starts are Greystone in Palm Beach County, Islands at Doral in Miami-Dade and Valencia Pointe in Palm Beach.



Miami Condo Foreclosures Forcing Fees on Residents

Marketplace Public Radio takes a closer look at Celebration Point, a Miami Lakes condominium where foreclosures and special assessments are creating financial hardships for the remaining residents. Facing a $250,000 loss, the condo association is tapping an emergency fund to the tune of $20,000 per month. Marketplace notes that Celebration Point is a microcosm of the broader Florida housing market where new luxury condos and apartment-to-condo conversions are coping with this trend that often leaves common areas and amenities in disrepair. A representative of Upside Down Florida sums up the problem: It's just a cascade effect of where, if you keep reducing the number of residents, you're ultimately going to raise the dues for everybody else that remains. (Click here to listen to the audio clip)



Office Depot Earnings Down; Blames Housing; Stock Rallies

Office supply giant Office Depot reported earnings yesterday, and the Florida-based Company partially blamed the weak housing market for quarterly profit that came in below 2007 numbers. While international sales were up, domestic sales were down 7% due in part to the weak economy in states like Florida and California. Sales to small and mid-sized companies in those two states were down 30% in the first quarter; however, 2008 earnings exceeded Wall Street expectations, and there are signs of stability and strengthening. The company reported an improved outlook going forward and Office Depot shares responded jumping 16%. (Chart)