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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (49861)	3/9/2006 10:58:02 AM
From: GraceZ	Respond to of 306849

Prices there are still higher than last summer, a lot higher, but reductions are coming in on a weekly basis now. They are finding out that their profit projections were a bit high. So much of the inventory in Cape Coral are homes that speculators bought with all cash. I think they lose a lot of profits but the homes there were so low priced to begin with that the speculators left holding the bag might just turn into "investors" instead of selling at fire sale prices as what would happen in an area where the investors were highly leveraged. I don't know about your area but builders are not holding large inventories of finished homes, they are holding inventories of improved lots. Cape Coral is the land of the small builder, there wasn't a lot of greenfield building going on as there was in places like Las Vegas, Riverside, CA and Yuba, CA where whole new developments were being created out of nothing.