Saturday, October 13, 2007

The "Collapsed" Housing Market

From Fox40:

Laguna Oaks Condo development is the latest to take the auction route...The two bedroom units will open at $145,000, the three bedrooms open at $165,000. That's about half the normal asking prices.
From the Elk Grove Citizen:
The city of Elk Grove’s staff has labeled the current times as the “first period of economic uncertainty” for the city. This is according to the city staff report for the Family Life and Fitness Center that was presented to the Elk Grove City Council on Oct. 10. The city’s General Fund Reserve felt a hit from these uncertain times, the report stated. The reserve balance is currently at $11.5 million, or 17 percent of operating revenues, 5 percent below the mandated-council 22 percent level. “I don’t think we are in a time that we could justifiably drain the reserves down,” City Council Member Pat Hume said.
City council members spoke to the Citizen to address why the reserve, which is meant to be used in times of disaster, is in its current state. “We are obviously in a downturn with the real estate market, which directly impacts the fund balances across the board for everybody,” City Council Member Mike Leary said.
[City Council Member Sohpia Scherman] said the housing market is one of the reasons why the economy is in the state it is in and why the General Fund Reserve has dipped to lower levels. “It’s not a big secret or surprise,” Scherman said.
From the Stockton Record:
A plan to build residential lofts in downtown's tallest building has been put off, delayed as other plans have been by the housing market's fall, officials said. "There's no market for that right now," Redevelopment Director Steve Pinkerton said this week.
This year, as the housing market has collapsed across the city, officials have increased plans for downtown housing, considering reduced fees and other rewards for those who build downtown. Once the market recovers, the city will be prepared for it, city officials said.


Jacob said...

Those condo prices actually sound reasonable. But condos get hit the hardest in downturns so maybe people will be smart enough not to bite.

Cmyst said...

I bought my condo for 108K in 2002. The woman who sold it to me had paid 86K for it in 1999 or 2000.