Builder confidence and sales in the overbuilt and overpriced condo market are down says this San Francisco Chronicle story Sunday.
From coast to coast, developers are nixing or delaying condominium projects as home sales decelerate, construction costs soar and lenders start to balk at financing units that might not sell. What's making it worse is the glut of high-priced condos and too few people who can afford them.
"We've gone through the biggest real estate boom in the last eight or nine years and some of these projects haven't started yet. Do you think they're going to start building now?" said real estate executive Allan Domb, dubbed Philadelphia's "condo king."
Will skeptics finally believe in the bubble if the condo king says it's popping?
Charles Hugh Smith hits on the root cause of the housing bubble in the ridiculous ease of getting huge mortgages.
Hot housing markets are responsible for a lot of things. A certain degree of social instability can be attributed to moving every 4 or 5 years. A house becomes just another thing, valued apart from the community where it sits. When you treat the place you live like it's part of a giant pyramid scheme instead of a home, you undervalue permanence and the larger social context.
This could be a bright side to the bubble pop, as long as you like living where you own now.