Wednesday, September 26, 2007
Back in 2005, former Fed Chairman Alan Greenspan made news when he suggested there was "froth" in the real estate market and there might be some "local bubbles." Florida condo buyers who didn't listen are apparently paying for it now. Or, rather, they're trying not to pay for the properties they agreed to purchase.
In formerly red-hot markets from Miami to San Diego, buyers who entered pre-construction contracts to purchase condos -- usually with the intention of flipping them to reap a large profit -- are trying to back out of them. There's been a sharp rise in lawsuits against developers claiming such things as failures to complete projects on time or to include promised amenities. Most of the suits seem to be seeking to avoid the contracts. Experts say that these sorts of delays and issues have been routine for some time, but that no one objected while prices were skyrocketing.