Worth Ave. Ozymandias: Mayor Embodied Housing Boom Arrogance
"West Palm Beach is experiencing the greatest infusion of private investment in the city's history." Mayor Lois Frankel made this declaration in 2004 and then did what any responsible elected official would do: she spent it all. New libraries, government buildings, ornate fountains, new hires and of course, pay raises for herself were all part of the Frankel Fun from 2003-07. In a scathing editorial that probably applies to 90% of local governments in Florida, Dan Moffett reports that Palm Beach government officials are now raising taxes and fees on anything and everything that will hold still. Meanwhile Mayor Frankel is blaming her new-found deficit on the Iraq War, Tallahassee, gas prices and, of course, the housing bath. (2004 FlashBath of the Palladio groundbreaking in West Palm and the project implosion reported on this blog May 18.)
In recent months, the Feds have encouraged lenders to voluntary ease their mortgage terms with borrowers facing dire straits. The latest mortgage delinquency numbers suggest one of two things: 1. Lenders are not exactly embracing this "voluntary" program, or 2. a new, more affluent class of borrower is falling into the HousingBath tub. Data released by the Mortgage Insurance Companies of America shows that 39,000 borrowers resumed timely payments in April, while almost 74,000 fell more than 60 days behind on their payments. One industry analyst was less-than-optimistic about the latest "solutions" from the do-nothing Congress: ''It's going to take a while before you see the impact of the government's plans, if you can even see a discernible one.' 
We rarely venture outside the Subprime State for news, but this one is just too good to pass up...a "Silver Lining in the Foreclosure Cloud." The San Francisco Chronicle examines the landscape of foreclosures in the Bay Area and finds golden opportunities for middle class home buyers. The Affordability Index shows prices down 26% compared to 2007, while deeper discounts are being offered by banks sitting on foreclosures. According to the Chronicle, entry-level homes have fallen to a much more reasonable price level of-gulp-$600,000. Entry level housing for $600,000? Bargain hunters say they are still holding out for $400,000 listings. And for anyone wondering what $600,000 will get you in the Bay Area, here are some examples. 
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