Monday, January 15, 2007

Buyers Scarce, Many Condos Are for Rent / NYT

with the owner equivalent rent making up over 40% of the cpi number one can imagine the effect on the "phony" inflation number. should be excellent news for the fed to have an (lousy) occasion to lower rates..... for more on this topic visit the commentary form the 9th. jan. from charles hugh smith (you need to scroll down to the date)

da die miete (oder genauer gesagt die gefühlte miete) 40% des inflationskorbes ausmacht dürfte hier in nächster zeit ein gewaltiger entlastender effekt auf die (in der berechnung lachhaften) inflationszahlen zukommen. dürfte anlass für die fed sein die zinsen zu senken. mehr dazu unter dem 09. jan auf dem blog von charles hugh smith.(link s oben)

Expenditure category
Food and beverages 15.7
Housing 40.9
Apparel 4.4
Transportation 17.1
Medical care 5.8
Recreation 6.0
Education/communication 5.8
Other goods & services 4.3
Total, all items 100.0

After six weeks of failing to lure more than a couple of dozen buyers, Mr. Franco and his partner, Jeff Blum, joined the builders of nearly 6,000 condominium units in the Washington metropolitan area who have decided in the last three months to recast their projects as rental apartment buildings. ......

Since the middle of 2006, the frenzied condominium market here and in several other big cities like Las Vegas, Miami (just ask wci.....) and Boston has collapsed. Once roaring sales have slowed to a trickle, sparse inventory has mushroomed into a glut and soaring prices have flattened out and started falling. ......

At the end of 2006, 24,200 units were on the market in the Washington area, up from 13,000 at the start of 2005. Sales have slowed to 663 in the fourth quarter of 2006 from 3,520 in the first quarter of 2005......



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