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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (31788)	5/5/2005 11:32:05 AM
From: ild	Read Replies (1) \| Respond to of 110194

United States: Whoops! David Greenlaw (New York) morganstanley.com

To: ild who wrote (31788)	5/5/2005 12:10:47 PM
From: Ramsey Su	Read Replies (1) \| Respond to of 110194

slowed: no line to buy anything that popped up. no multiple offers. not as much fear of loss. I suppose that should be considered healthy under normal conditions but no longer the manic pace of old. Using the 1200 sf house that mentioned in the earlier post, here is more background. That house was purchased June 2004 for $640k as a spec. Ran into problems with permits (hillside review) and only started work about 2 months ago. The house is gutted entirely. So here is the run down. Purchase: $640K Carrycost for 15 months (say 6%): $48K Complete rehab 1200 sf: $200k (pretty conservative) Selling cost (7%): $60K So they are going to need $948 to break even. I think they will be lucky if they get $800k. Is this going to slow the spec market?