Article about Poinciana

[Lax1]

I don't know if you saw this the other night on the news, if you have been down there you know how depressing it is.

http://www.wftv.com/news/16178336/detail.html

 

[David Dietz]

It is all over Florida, here is one article from my neck of the woods.

http://www.news-press.com/apps/pbcs.dll/article?AID=/20080502/RE/805020352/1076/HOMESCAPE99

 

[Dan/Fla]

I wonder how many of those homes where Investor homes, Most REO or short sales, in newer developments. I have been doing lately either were never lived in or were rental for a short time. These were investors which bought some of the 1st homes in the development to set the price for the builder, My theory is they wait till builder finished or about finish and builder has made a few increases in sales price then investor sell at a profit, But market slowed down and builder lowered instead in increased prices and investor losses. A few weeks ago I did 5 for the same investor all built in 2007 and all in same development. Not 1 was ever lived in. Then the residents in the development lose.

 

[Wendy]

My coverage area has three areas that are bubble poster-children: Deltona, Florida Shores and Palm Coast. All are sprawling subs with 10,000 SF lots originally platted years ago.

Builders started slapping up tons of new construction on in-fill lots that sold for $5-10K in 2000. Lot prices jumped to $40+. New home prices increased daily (as did hinky financing). Existing homes followed the new homes up. Then the bubble burst.

Homes that are 1-5 years old have seen the most defaults, but older construction is close. It is a mix of investor and owner. Pull a list of actives in any of these areas and more than half (and sometimes +90%) are shorts or reos.

You can get a 1 year old 2,000+ SF house in Flagler for well under $150 now. Same house went for $250+ in late 2006. :Eyecrazy:

 

[Wally Jones]

Before I "retired" last year, the last review I did was on a home in Poinciana. The "appraiser" traveled to two gated communities in another county for comparables when there were over 100 current sales available in Poinciana, 24 within one-half mile, three within two blocks of the subject. I wonder if he had a target price he needed to hit?? I felt he was about $50,000 too high. I'm sure there are plenty of other examples which have contributed to the current market situation.

"We have seen the enemy..........................." (but we have a lot of accomplices!)

 

[Alison Swain]

You can get a 1 year old 2,000+ SF house in Flagler for well under $150 now. Same house went for $250+ in late 2006.

The first I heard of the wild run-ups was when I was in a CE class at the end of October, 2004 (nothing like waiting until the last minute, huh?).

Anyway, there was a kid in class who told some wild story about doing appraisals in a new home community in Flagler Beach where the homeowners would come home from closing on their new $160,000 house to find someone on their front porch offering them $240,000 to sell. WTF? :Eyecrazy:

It took until March of 2005 before I started seeing the same thing myself. Did an appraisal on new construction with a pre-construction price of $205K. The only resale comp I had was for a model match 1/2 a block away for $296,000.

Nope, nothing like experience in this business. Hang around long enough and we see it all. :new_all_coholic:

 

[Wendy]

...It took until March of 2005 before I started seeing the same thing myself. Did an appraisal on new construction with a pre-construction price of $205K. The only resale comp I had was for a model match 1/2 a block away for $296,000. .....

I bet the sales history for that re-sale now looks like this:

2005 $205,000
2006 $296,000
2007 $100.00 FC
2008 $150,000

These be some wild times. Now if there was just a little more work.......

 

[Alison Swain]

Now if there was just a little more work.......

Get your broker's license. They have plenty of BPO work.

 

[444nutman]

The first I heard of the wild run-ups was when I was in a CE class at the end of October, 2004 (nothing like waiting until the last minute, huh?).

Anyway, there was a kid in class who told some wild story about doing appraisals in a new home community in Flagler Beach where the homeowners would come home from closing on their new $160,000 house to find someone on their front porch offering them $240,000 to sell. WTF? :Eyecrazy:

It took until March of 2005 before I started seeing the same thing myself. Did an appraisal on new construction with a pre-construction price of $205K. The only resale comp I had was for a model match 1/2 a block away for $296,000.

Nope, nothing like experience in this business. Hang around long enough and we see it all. :new_all_coholic:

I was seeing that in Polk side of poinciana in the area where all the streets are named after fish. Maronda was selling the bayberry and forgot the other 2 story model for 135k to 165k and 3 months later they were selling for 200k to 245k. People were not even moving in and before the ink dries on the contract selling it for 80% profit. I knew then it was going to be trouble there. When I started appraising you could still get a decent house in poinciana for under 100k. Funny thing is soon you will be able to do the same.

 

[Wendy]

Maronda was selling the bayberry ....

Is that the name of the big 2-story ugly box model? If so, those things (and their clones) have had the biggest overall drop of ANY housing around here. They are even beating condos.