The Daily Soak - May 18

South Florida Condo Glut Luring U.S., International Buyers

What do Boston, Bogota and Bangalore all have in common? According to this article, they are home to interested buyers who are wheeling and dealing for condo bargains in South Florida. With 30-60% price reductions from the 2005-06 peak, the outlook is positive for condo buyers in both Palm Beach and Broward County. Median existing condo prices are down exactly 30% in both counties from 2007, and recent buying activity suggests a bottom is near. Not so in Miami-Dade where 30,000 additional unfinished condo units will come online and only push prices of existing condos down further.



Palm Beach Condo Deal Implodes; Credit Union Loses Millions

Eastern Financial, the credit union formed in 1937 to service employees of now-defunct Eastern Airlines, got away from its core business during the housing boom and is now paying the price. Eastern made a $30 million loan to Miami-based Merco Group for a 338-unit waterfront condo in West Palm Beach called Palladio Terrace. 8 months after receiving the loan, Merco stopped making payments, and Eastern sued to foreclose in October. The Palladio parcel on North Flagler will be auctioned off July 17, but Eastern will likely settle for millions less than the $37.2 million in unpaid principal and accumulated interest.



Workshop Focus Shifts From Speculation to Survival

Floridians used to attend real estate workshops to learn about buying and flipping houses they would never live in. The focus of today's workshops is simply about hanging on to the roof over your family's head. The City of Orlando Housing Authority is hosting foreclosure education seminars, and attendance is growing along with the number of upside-down homeowners in Central Florida. The two most important workshop takeaways for any homeowner facing the prospect of foreclosure: 1. Avoid scammers offering to help bail you out, and 2. Keep the lines of communication open with your lender.