Wednesday, June 13, 2007

Auction Outrage In Fort Myers / Hammertime!

"You're not going to believe what some brand new townhomes went for on the auction block Thursday night in Fort Myers, considering where prices have been."

>we do.........they better get used to news like this.....
>wir schon.....an diese news sollte man sich in den usa besser gewöhnen.......

hat tip to huw

make sure you click on the headline to see the video. some very angry homeowners .....understandable after they paid more than double the price of the auction just a short time ago........

bitte auf die überschrift klicken um das video zu starten. einige hausbesitzer sind dort ziemlich in rage. kein wunder wenn man vor kurzem noch mehr als das doppelte für sein haus bezahlt hat.....

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5 Comments:

Anonymous shtov said...

That drives it "home" - thanks for the link.

3:42 AM  
Anonymous Anonymous said...

The housing sector is clearly in trouble -- many aspects of that have been widely reported. But this particular phenomenon -- falling prices -- will lead to another one that has not gotten much attention: people who could otherwise afford to pay just walking away from their mortgages. Why continue to service the debt on a house carrying growing negative equity? Some will probably first ask for a short sale, but with prices falling so fast in some locales banks won't approve many of those.

3:58 AM  
Blogger jmf said...

hello,

just look at this chart from reo´s from countrywide..... :-)

http://tinyurl.com/22vw96

4:10 AM  
Blogger Robert said...

Jmf,

You have an excellent blog. I have been a long-time reader, but haven't commented. Also, I read your comments at Bill Cara, also great.

What Anon 3:58 is describing is and will continue to happen. Especially with investors. They have no reason to stave off foreclosure because they don't live in the house or care. If it is a family home, people will *try* to save it, but that only goes so far.

I actually live in Fort Myers and the interesting thing was that the auction was almost a non-event. The paper barely mentioned it, most people didn't even notice, etc.

But it made national news. Strange.

While I agree that housing has significant problems, I also think that this is going to take much longer to play out than we think. I was short the REITS, CFC and a multitude of others earlier in the year, but I have reeled all those in now. This isn't going to happen over night and I wouldn't look to bet too hard against housing until the general market turns. We may be there now, but I think Bernanke and Paulson have a little bit more in store for the markets.

5:54 AM  
Blogger jmf said...

hi robert,

thanks for the kind words.

i agree. my biggest fear with my shorts in reits, homebuilder and the lenders is that i expect rate cuts down the road and a hefty recession.

with the animal spirit of wall street it can happen that despite lousy fundamentals they "play" the interest rate sensitive stocks and squeeze me out.

this has happened numerous times the last 12-18 month. but at least for now fundamentals have gained the upper hand :-)

6:22 AM  

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