The Daily Soak - May 20

HousingBath Keeping Boat Repo Men Busy

The boat repossession business is booming thanks to the large number of Americans who used cash-out refinancing on their homes to purchase luxury cruisers and miniyachts in recent years. Recreational boat sales surged 40% from 2000-06 reaching a peak of nearly $40 billion while the average boat loan size tripled to $141,000. When the housing tide turned in 2007, boat sales dropped 8% and many owners either fell behind or defaulted on boat and dock payments. Lenders are working aggressively with repo men to recover vessels in case of default, and Florida is home to some of the nation's leading boat liquidation companies. This slideshow link chronicles the repo of a 34-foot Donzi Express.



South Florida HousingBath Offset by International Trade

Housing inventory and prices may be moving in the wrong directions, but international trade, primarily to Latin America, is booming. One of the few bright spots of the South Florida economy, exports to key trade partners in the Western Hemisphere rose to $12 billion in the first quarter of this year alone. South Florida's most important regional trade partners are Brazil, a country enjoying its strongest economy in decades, and Colombia, a beacon of regional hope and free market capitalism led by President Alvaro Uribe. In related Latin American news, Mexican cement giant Cemex reported capacity will be ramped up 32% by the end of 2009 prompting speculation that Mexican homebuilders are gearing back up for a recovery.



The Next Condo HousingBath: Panama

A former Congressman and South Florida resident blogs about his recent trip to Panama and boasts that "the bubble (if it can be called that) has not burst." In the case of Panama, it's not a matter of "if" but "when." Not since downtown Miami in 2003-08 has there been such an unjustified concentration of overpriced, overhyped, under-amenitized condominiums. Mr. Bauman accurately notes "the bargains are over," as 700 square foot units in most high-rises begin in the mid-$200s. Factor in Panama City's high unemployment and complete lack of clean beaches, golf courses or adequate infrastructure to support the 170-200 high-rises currently under construction, and you have all the ingredients for Latin America's first official HousingBath..er..HousingBaño.